Elon's demand "secret weapon" ...what is it?

[ecarfan]

The idea of Tesla selling through Apple stores makes absolutely no sense to me. None of them have any extra space and certainly no space for a car! Apple would have zero interest in distracting their customers with a Tesla display.

I have no idea what Elon's "secret weapon" against the auto dealers will be, but selling through Apple isn't it.

 

[ItsNotAboutTheMoney]

I think I've figured it out.

Firmware update with "substantial impact"
+ Secret weapon for demand
= Firmware will cause mysterious crashes, forcing people to replace their Model S.
(This is also why Elon Musk insists on the Model S being very safe: permanent injury or death means one less customer).

</darkhumor>

 

[HankLloydRight]

The idea of Tesla selling through Apple stores makes absolutely no sense to me. None of them have any extra space and certainly no space for a car! Apple would have zero interest in distracting their customers with a Tesla display.

I have no idea what Elon's "secret weapon" against the auto dealers will be, but selling through Apple isn't it.

I agree... this line of thought makes no sense. And Apple would have to apply to every state to be a car dealer/franchise before they could sell one car. It's not like they can just plop a Model S in an Apple store and start selling cars. And isn't there a problem that if Tesla offers Apple even one franchise, they have to offer it to other businesses/people in every other state as well?

Just because Tesla stores and Apple stores look alike (maybe because they were designed by the same guy!!!).. doesn't mean that selling cars in Apple stores makes any sense.

Now the "Tesla Used Car Store" makes a ton of sense to get around the new car sales battle with the new car dealers. Tesla would just have to funnel all the CPO cars to those states where they can't sell new.

 

[tomas]

Ok, ok. Don't know franchise complexities, but seems to me that highest impact and quickest way to penetrate all states is partner with a non-conventional dealer chain. I think suggestions of a legal or legislative solution is absurd. And a used store is not high impact enough, doesn't really stimulate new demand. So if it can't be Apple as dealer partner, anyone it could be?

 

[LakeForest]

Couldn't it be a display in a store as simple as Best Buy, nordstroms..etc Quickly open displays in more locations, they may only act as galleries, or maybe they offer ordering. Allows rapid visibility of cars, and if in the right store, to the right clientele.

 

[bonaire]

To me, home battery storage isn't sexy, but a two way V2G or V2H hybrid solution would be fantastic. Using the car as standby batteries through relatively simple wiring changes would be a good solution and you have a large installed base of cars already.

if you have solar, let the car absorb charge during the day. However you may also have cheap TOU pricing for overnight car charging. You can do both through software settings. Just as a solar pv array senses the grid and can dump power into your home and the grid during the day, you can have the car dump at a rate you select, such as 2KW or so. That can trim a home's daytime tiered peak usage and can cooperate with smart grid meters and demand/response needs.

Drawback is that it would cycle the batteries more and perhaps cause issues with the warranty.

 

[HankLloydRight]

It's not just about adding more "galleries" in other stores/places. If Elon says "secret weapon" I think "disruptive".. not just extending what he's already doing. Besides, in many states there are already existing limits to the number of galleries Tesla can open, and just because it's "inside" some other store doesn't automatically make it more legal for Tesla to display cars.

I would bet dollars to donuts that the "Secret Weapon" is something completely out of the box, which will deliver a severe blow to the New car dealers' associations. Likely something even we would never consider. Not just opening up new galleries or partnering with Apple, Best Buy, etc.

Also, a Tesla used car store would drive demand, as it would allow prospective buyers to test drive the cars and get sales information legally. And if they wanted to buy a new car instead, people are just sent home to order one online.

 

[tomas]

Also, a Tesla used car store would drive demand, as it would allow prospective buyers to test drive the cars and get sales information legally. And if they wanted to buy a new car instead, people are just sent home to order one online.

maybe, but sounds neither disruptive nor secret weapon worthy. I guess as a group we haven't guessed it yet.

 

[jhm]

Just as a reminder, here's the quote from Musk:

I do have a secret weapon on the demand side that probably start to deploy this year for demand generation. We'll see how that goes. It isn't totally necessary, but it could be pretty interesting and a good weapon against the dealers.

Note that this weapon "isn't totally necessay" and could "start to deploy this year." Sometimes looking at the text can provide new clues.

 

[HankLloydRight]

Sounds like the CPO program to me. That's what I'd bet on.

 

[tomas]

Sounds like the CPO program to me. That's what I'd bet on.

But that's already launched! Doesn't fit his future tense.

 

[jhm]

How about political ads that expose the cronyism of the auto dealer associations? Nobody really likes the dealers, and when you see the political games they play you like them even less. Moreover, if you are a politician taking money from these guys, you really, really, really do not want the public to know what the game is. Just ask Chris Christie. Tesla has a lot to gain from shining a little light into situation.

 

[CHGolferJim]

Hmmm, his words are unusually understated, so maybe no biggie.

 

[HankLloydRight]

But that's already launched! Doesn't fit his future tense.

Really? Where?

 

[tomas]

Really? Where?

Call your sales center. Several weeks ago across US. Low key.

 

[sunilsf]

I was at Sunnyvale yesterday and they had 6 or so model S for the CPO program, but told me it hadn't launched yet. Said they are waiting on specifics from hq.
I asked them, what if I wanted to buy one-- they said they can't sell them yet as pricing isn't ready.

I do think the CPO program could be the weapon. You get the tax credits immediately and 6yr/100k mile warranty... And get to bring your car home same day! Would suggest that Elon may have said this in a stronger way than needed, but then again think about how many people still don't know about the company. This could increase brand awareness.

 

[tomas]

I was at Sunnyvale yesterday and they had 6 or so model S for the CPO program, but told me it hadn't launched yet. Said they are waiting on specifics from hq.
I asked them, what if I wanted to buy one-- they said they can't sell them yet as pricing isn't ready.

I do think the CPO program could be the weapon. You get the tax credits immediately and 6yr/100k mile warranty... And get to bring your car home same day! Would suggest that Elon may have said this in a stronger way than needed, but then again think about how many people still don't know about the company. This could increase brand awareness.

i was in sales center 2 weeks ago, told it was launched. There are several posts on this forum of cpo buyers. The Sunnyvale guy is uninformed.

PS how do you get tax credits for cpo? You don't. We will see, but I'll place bets this ain't it.

 

[ItsNotAboutTheMoney]

To me, home battery storage isn't sexy, but a two way V2G or V2H hybrid solution would be fantastic. Using the car as standby batteries through relatively simple wiring changes would be a good solution and you have a large installed base of cars already.

if you have solar, let the car absorb charge during the day. However you may also have cheap TOU pricing for overnight car charging. You can do both through software settings. Just as a solar pv array senses the grid and can dump power into your home and the grid during the day, you can have the car dump at a rate you select, such as 2KW or so. That can trim a home's daytime tiered peak usage and can cooperate with smart grid meters and demand/response needs.

Drawback is that it would cycle the batteries more and perhaps cause issues with the warranty.

Well, Elon Musk has previously said that the risks aren't worth it. When you start pumping into the grid, it increasing potential safety problems and utilities might not be happy about it.

But, maybe he'd backtrack. If Tesla's now getting ready to sell a consumer back-up battery, maybe they're ready to have their cars (which have systems built to higher spec than a home battery pack) act as back-ups as well.

I'm not sure that the cycling would be economical, but if Tesla thinks that cycling at low C wouldn't be a big deal, then, given that a Model S would laugh at puny home power demands, maybe the cost wouldn't really be that high. (Or maybe it would be secretly high, the consumer wouldn't be able to tell.)

 

[sunilsf]

Yes, likely uninformed but how unfortunate to not know and have 6 cars just sitting there!
re: tax credits... I misspoke-- I meant that the price is already reduced by the tax credit amount.

 

[yesla]

I'm going to guess that they will lay down plans on how to tie in with Solar City.