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Employee who sent $30,000 off email was FIRED!

mmd

Banned
Jun 22, 2015
1,338
-2
San Jose, CA
Hello everyone,

Last week I received an email from Tesla advertising "showroom discounts" up to $30,000 off P100D models, which I posted here. TMC put an article on the front page based on my post, which got picked up by Elektrek in this article: Tesla offers ‘up to $30,000 showroom discounts’ and lowers interest rates to boost sales before end of the quarter. Tesla has since terminated the sales advisor, Aaron Schenck. Some of us local owners are really shocked by this, especially since many of us received the email and told people we knew to help Tesla sell more cars. Aaron Schenck is a great guy with a family, doesn't deserve this. I was told by another local owner that Aaron had the approval of his manager to send out that email because end-of-quarter incentives were coming.

The TMC article that likely prompted the Elektrek article is here: Tesla Offering ‘Showroom Discounts’ Up To $30K

The thread I started when I shared the email is here: Tesla Email: $30,000 Off P100D!!!!

Hoping there is something we can do for him, he was just doing his job.
I gave you a like, but the moment I saw your original post with exact employee name, I knew he was in trouble, even though he was doing exactly what top management aka Elon told them to do. Then the exact email appeared in various articles from SA, Electrek and insideevs.

Honestly, you should have hidden his name, just like you hid your own name.

You can tweet Elon and ask, why Tesla is firing people when they are doing what he told them to do.
The firing is likely just a PR stunt to show everyone that "Tesla doesn't discount". Hopefully he gets rehired quietly, so he can sell more the same way. Q4 is coming soon.
 
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AnxietyRanger

Well-Known Member
Aug 22, 2014
9,408
7,402
EU
Elon never claimed there were no discounts. What he specifically said was that a Tesla buyer should never get a better price for the same car because s/he was a better negotiator than someone else buying the same car. That was what was occurring a year or so ago and that is what he put a stop to with his memo to employees. The shorts, the press, and many others never took the time to understand his words and instead created the sound bite that Tesla doesn't discount.

Tesla discounts inventory cars based on how many miles they have on the odo, how long it has been since they were produced, whether a newer version of some portion of the car has been or is about to be introduced, and whether a price reduction or option bundling has been announced since the inventory car was first priced. That said, once they establish the discounted price, it is not negotiable. You pay the same price as me if you buy the car. You can't negotiate a bigger discount that gets approved by "the manager". Nor will they "throw in" some options for free.

The current discounts are occurring because there have been price reductions and most likely because there is an impending upgrade that means that all of the cars currently in inventory will have to be discounted anyway when that upgrade occurs, most likely in early October.

Edit: I see my statements above about the discount policy were echoed by Tesla:
$30,000 Off Price Of Tesla Model S P100D Or Model X P100D Showroom Cars This Month

While I do believe no negotioations part is pretty much accurate, I guess a lot of us do not really believe it when Tesla says they don't discount. Too many end of quarter rushes has shown inventory age, mileage etc. have a fairly loose connection to the price at that stage. Because they do so very little traditional advertising etc., they resort to all sorts of trickery to push quarterly sales (including not just reverse discounts and product features, but also at times aggressive inventory management).

I believe many also do not believe Tesla's upper management did not know or approve of the Q3/2016 discounting, which was widespread. Ending the policy one day before the end of quarter - and after achieving record results - certainly seems suspect. When you get non-driven inventory cars at significant discounts, as long as you take delivery by end of quarter, that's a discount.
 
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AnxietyRanger

Well-Known Member
Aug 22, 2014
9,408
7,402
EU
Here's my theory: The 30k discount story was hurting Q3 sales when people started asking for it. It was probably just fine as long as it remained clandestine enough...

Drastic action was needed to drive the point home...

Just speculation, of course.
 

AnOutsider

S532 # XS27
Apr 3, 2009
11,957
200
Here's my theory: The 30k discount story was hurting Q3 sales when people started asking for it. It was probably just fine as long as it remained clandestine enough...

Drastic action was needed to drive the point home...

Just speculation, of course.

Perhaps, but I don't think the "action" is getting out there nearly as much as the 30k off headline is. Heck, it made me reconsider holding onto my dinosaur P85
 
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AnOutsider

S532 # XS27
Apr 3, 2009
11,957
200
Ha, I said reconsider, not jump off the ledge. Love my wife's X, but there hasn't been anything in the Newer S's aside from range to pique my interest.
 
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SO16

Active Member
Feb 25, 2016
2,972
9,191
MI
I think it's time for a more mature CEO. This smacks of complete immaturity and poor management. EM can run his mouth all day without recourse but his front line sales team makes a mistake and he smokes them. Must feel good to be the King. I hope the board smokes him the same way when he misses his numbers due to the draconian treatment of his revenue generation team.
Come on treat your front line team better than that.


Actually, it's more immature to jump to conclusions without knowing more of the facts related to this situation.
 

Xenoilphobe

Active Member
Jan 2, 2014
4,583
4,308
Fairfax County, Virginia
Actually, it's more immature to jump to conclusions without knowing more of the facts related to this situation.
I will give you that. The rest of the comments still stand. Treat your employees like future customers - not fodder.

I plan to reach out to Aaron and see if I can help him get a job - I've been in sales roles since 1990 and have a great network for him to access. I will get the details, but I sure will not be posting them here for Tesla to weaponize.

In a time of universal deceit - telling the truth is a revolutionary act. (G. Orwell)
 

SO16

Active Member
Feb 25, 2016
2,972
9,191
MI
I will give you that. The rest of the comments still stand. Treat your employees like future customers - not fodder.

I plan to reach out to Aaron and see if I can help him get a job - I've been in sales roles since 1990 and have a great network for him to access. I will get the details, but I sure will not be posting them here for Tesla to weaponize.

In a time of universal deceit - telling the truth is a revolutionary act. (G. Orwell)
Great! I hope you succeed! I'm sure Aaron will appreciate it.
 

brianman

Burrito Founder
Nov 10, 2011
17,533
2,997
No good deed goes unpunished. You can always negotiate, as much as Elon will insist otherwise. Teslas have often been available at a discount from MSRP. Ever seen a "showroom" vehicle or "demo" vehicle with < 50 miles on it? I have. This won't be the case for Model 3 initially, but will be within 6 months of hard launch.
I think we use the word "negotiate" differently. Have you seen a single report (or witnessed in person) of Tesla listing a vehicle at a certain price and then a discussion with a customer resulting in a lower price? I haven't.
 

AnxietyRanger

Well-Known Member
Aug 22, 2014
9,408
7,402
EU
I think we use the word "negotiate" differently. Have you seen a single report (or witnessed in person) of Tesla listing a vehicle at a certain price and then a discussion with a customer resulting in a lower price? I haven't.

Yeah, I don't think Tesla negotiates the prices. But they have discounted inventory in such a manner at quarter's ends to suggest they are possibly discounting mew inventory for demand at times, not just discounting for age or mileage.
 
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AnxietyRanger

Well-Known Member
Aug 22, 2014
9,408
7,402
EU
How do you know that?

It is true we don't know that. That is one alternative and factor we must consider.

It seems likely, though, that it was. That IMO is the simplest explanation.

But you're right in that other alternatives must be considered too.
 

brianman

Burrito Founder
Nov 10, 2011
17,533
2,997
Yeah, I don't think Tesla negotiates the prices. But they have discounted inventory in such a manner at quarter's ends to suggest they are possibly discounting mew inventory for demand at times, not just discounting for age or mileage.
Apples and oranges.

"The market price for an older apple is now 10% less." has nothing to do with negotiation.
 

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