Follow up to employee termination

[AnxietyRanger]

@bonnie I believe it is common understanding something happened to Tesla's inventory around November 2017. Most of it went missing overnight. A financing event? Preparing for product changes? Who knows?

I believe people refer to previously existing hidden inventory, which I believe is a pretty much verified fact (i.e. not all inventory was on the public site).

 

[bonnie]

@bonnie I believe it is common understanding something happened to Tesla's inventory around November 2017. Most of it went missing overnight. A financing event? Preparing for product changes? Who knows?

I believe people refer to previously existing hidden inventory, which I believe is a pretty much verified fact (i.e. not all inventory was on the public site).

Right. I was just clarifying that it appears nothing is hidden from public view at the moment (this OA searches all of that).

 

[Electroman]

And if the boundaries WERE made clear and were violated the very next day, would you feel differently?

Hypothetically speaking, of course. But we all see these situations through our own prior life experience. I've had fantastic customer-facing employees who had egos so big, they thought they knew better, knowingly violated parameters, and believed they were just too good to be let go. No one is that good. And customers were outraged with 'how could they do this to YOU???'.

I'm not defending Tesla and I'm not defending the OP. I'm saying that WE do not know the full story. And there could be more to the story than what the OP shares. Or not. But WE do not know.

Thats a cop out.

Obviously there are two sides to a story and although we will never know the Tesla side of the story, we can speculate and judge by giving a lot of leeway and benefit of doubt to Tesla's management - and even then this action to OP cannot be fully justified. There are 15 different ways this could have been handled better, what with atleast at the minimum providing Aaron the benefit of cashing his stock options. Whichever way you slice it, that comes out as vindictive.

 

[bonnie]

Thats a cop out.

Obviously there are two sides to a story and although we will never know the Tesla side of the story, we can speculate and judge by giving a lot of leeway and benefit of doubt to Tesla's management - and even then this action to OP cannot be fully justified. There are 15 different ways this could have been handled better, what with atleast at the minimum providing Aaron the benefit of cashing his stock options. Whichever way you slice it, that comes out as vindictive.

Viewing the posts in this thread, I'd say that very little leeway or benefit of doubt has been given to Tesla. There is a LOT of rush to judgment, however.

It's not a cop out to state there is more than one side to a story. It's not a cop out to give alternate possibilities. I disagree with your conclusions (but since I happen to like real discussions, won't hit the Disagree button because imo, that's a cop out).

 

[Economite]

Thats a cop out.

Obviously there are two sides to a story and although we will never know the Tesla side of the story, we can speculate and judge by giving a lot of leeway and benefit of doubt to Tesla's management - and even then this action to OP cannot be fully justified. There are 15 different ways this could have been handled better, what with atleast at the minimum providing Aaron the benefit of cashing his stock options. Whichever way you slice it, that comes out as vindictive.

Does the notion that a high-level Tesla manager might get angry at a news story and demand that the "responsible" employee loose their job actually seem at all out-of-character for Tesla? It seems to me that this is exactly in-line with my image of the high-pressure workplace. And when a higher-up wants a head cut, the fact that the employee is otherwise a good employee is unlikely to matter much.

 

[TEG]

@bonnie I believe it is common understanding something happened to Tesla's inventory around November 2017. Most of it went missing overnight...

I think the news of the tax credit possibly going away may have caused a sudden surge in buyers near the end of the year.
I know of multiple people that rushed to buy one during December out of fear that the tax credit was about to be canceled.

 

[Formeremployee]

A few people mentioned they haven't heard both sides of the story so I wanted to share the press teams response from September.

"Recently, an unauthorized and inaccurate email from a Tesla sales associate was circulated that directly contradicted Tesla’s sales principles. This email suggested that Tesla was offering a $30k showroom discount, when in fact we have a strict no negotiation and no discount policy. This has been true since we first started taking orders more than ten years ago, a fact we reaffirmed last year. There are zero exceptions to that policy: every Tesla customer pays the same amount for the same car, period. That is true for Elon, friends and family of the company, or anyone else.

What the sales associate was referring to was not a discount on a new car from the factory. He was referring to a pricing adjustment that is made to test drive vehicles, service loaners, cars that had been damaged and then repaired, or old models, as these cars have wear and tear, mileage, or discontinued features. Naturally, the more miles, wear and tear, or discontinued features that a car has, the greater the pricing adjustment that is made.

No Tesla customer ever has to be concerned about not getting a “good deal.” A “good deal” is code for how a company takes advantage of a customer. We don’t do “deals.” We treat everyone the same. This will never change, ever."


In hindsight I would have made it more clear that the incentives we're on "showroom, and test drive vehicles" I spent the following week after I sent the email explaining the incentive to clients.

It was a pr nightmare at the EOQ and they choose the path of least resistance. I started this thread almost 4 months later because I wanted to share my side of the story for anyone who was interested.

 

[bonaire]

Does the notion that a high-level Tesla manager might get angry at a news story and demand that the "responsible" employee loose their job actually seem at all out-of-character for Tesla? It seems to me that this is exactly in-line with my image of the high-pressure workplace. And when a higher-up wants a head cut, the fact that the employee is otherwise a good employee is unlikely to matter much.

This is Occam's Razor. Complex business plans are made up of small, very simple steps.

 

[xborg]

A few people mentioned they haven't heard both sides of the story so I wanted to share the press teams response from September.

"Recently, an unauthorized and inaccurate email from a Tesla sales associate was circulated that directly contradicted Tesla’s sales principles. This email suggested that Tesla was offering a $30k showroom discount, when in fact we have a strict no negotiation and no discount policy. This has been true since we first started taking orders more than ten years ago, a fact we reaffirmed last year. There are zero exceptions to that policy: every Tesla customer pays the same amount for the same car, period. That is true for Elon, friends and family of the company, or anyone else.

What the sales associate was referring to was not a discount on a new car from the factory. He was referring to a pricing adjustment that is made to test drive vehicles, service loaners, cars that had been damaged and then repaired, or old models, as these cars have wear and tear, mileage, or discontinued features. Naturally, the more miles, wear and tear, or discontinued features that a car has, the greater the pricing adjustment that is made.

No Tesla customer ever has to be concerned about not getting a “good deal.” A “good deal” is code for how a company takes advantage of a customer. We don’t do “deals.” We treat everyone the same. This will never change, ever."


In hindsight I would have made it more clear that the incentives we're on "showroom, and test drive vehicles" I spent the following week after I sent the email explaining the incentive to clients.

It was a pr nightmare at the EOQ and they choose the path of least resistance. I started this thread almost 4 months later because I wanted to share my side of the story for anyone who was interested.

Thanks for sharing this again, Tesla's wording is joke.

The truth is, these vehicles are just inventory vehicles, most of them are brand new and just waiting in the warehouse. No wear-tear at all, isn't it? I know because my friends landed on good deals, and the cars were brand new.

 

[Formeremployee]

Inventory vehicles come from various sources. Test drive vehicles and overnight loaners accrue mileage/wear and tear, especially performance models because people want to experience the 0 - 60 launch. Service loaners typically accrue higher mileage and light wear due to the type of use.. Vehicles used on display at events or in showrooms end up with low mileage (typically less than 100) they end up with more wear and tear due people getting in and out, rubbing against the panels along the edges of the doors, sitting in the seats, and messing around with any moveable interior parts. Some locations see significantly higher foot traffic than others. Then there are inventory vehicles that are produced and stored at HUBs throughout the country. These surplus options are designed for a fast sale and delivery. The configurations are based on the most common design choices. Many times they are sold with less than 150 miles. The mileage is accrued from transportation and there is little to no wear unless from the factory or in transportation.

The price adjustments come from mileage, age, wear/tear, previous vehicle damage or accident history (can happen on test drives and overnight loans) and old design components, for example classic front fascia cars after the design refresh. The last type of adjustments are controversial. Some notice it near eoq or if a bump in sales is allegedly needed. Some say it was a credit for an option that they didn't want such as $1,000 off the sales price to for the subzero package, or a credit for Premium Sound. These price adjustments are separate from any residual value tweaks or financing incentives..

 

[AnxietyRanger]

I think the news of the tax credit possibly going away may have caused a sudden surge in buyers near the end of the year.
I know of multiple people that rushed to buy one during December out of fear that the tax credit was about to be canceled.

There was another distinct event earlier in the second half when almost all inventory disappeared overnight.

 

[TEG]

There was another distinct event earlier in the second half when almost all inventory disappeared overnight.

So no explanation for that?

 

[AnxietyRanger]

So no explanation for that?

Not that I know of. Quarterly results seemed to suggest some re-financing / negotiating terms for inventory financing or something of the sort, maybe related or not?

 

[CUBldr97]

seems like a classic case of cover your ass by Aaron's management, and hes was clearly the fall guy... happens everywhere. the store manager and all involved threw Aaron under the bus. Leadership doesn't exist in many places.. and when the crap happens, all the so called leaders duck out of the way as it roles down hill...

 

[TEG]

Not that I know of. Quarterly results seemed to suggest some re-financing / negotiating terms for inventory financing or something of the sort, maybe related or not?

From this post:
Tesla just dumped a ton of new CPO's on it's site
It sounds like maybe they wanted to free up delivery specialists to focus on new cars until the quarter was over.

 

[bonaire]

Inventory vehicles come from various sources. Test drive vehicles and overnight loaners accrue mileage/wear and tear, especially performance models because people want to experience the 0 - 60 launch. Service loaners typically accrue higher mileage and light wear due to the type of use.. Vehicles used on display at events or in showrooms end up with low mileage (typically less than 100) they end up with more wear and tear due people getting in and out, rubbing against the panels along the edges of the doors, sitting in the seats, and messing around with any moveable interior parts. Some locations see significantly higher foot traffic than others. Then there are inventory vehicles that are produced and stored at HUBs throughout the country. These surplus options are designed for a fast sale and delivery. The configurations are based on the most common design choices. Many times they are sold with less than 150 miles. The mileage is accrued from transportation and there is little to no wear unless from the factory or in transportation.

The price adjustments come from mileage, age, wear/tear, previous vehicle damage or accident history (can happen on test drives and overnight loans) and old design components, for example classic front fascia cars after the design refresh. The last type of adjustments are controversial. Some notice it near eoq or if a bump in sales is allegedly needed. Some say it was a credit for an option that they didn't want such as $1,000 off the sales price to for the subzero package, or a credit for Premium Sound. These price adjustments are separate from any residual value tweaks or financing incentives..

Age is subjective. They can make a spare 1000 units and store them in Birmingham, for example. End of quarter rolls around and they can be made available at big "age" discounts. I have seen 50 mile offers with 3-4 months or age (lower vin #s) offered with big discounts over $10k and in the light of the P90DL discontinuance last year, $30k or more discounting. Piles of input parts are not worth anywhere near the value of finished cars. Housing cars to age and then discount at end of quarters to make the sales number is the embodiment of planned discounting.

 

[AnxietyRanger]

Age is subjective. They can make a spare 1000 units and store them in Birmingham, for example. End of quarter rolls around and they can be made available at big "age" discounts.

Housing cars to age and then discount at end of quarters to make the sales number is the embodiment of planned discounting.

This seems like a plausible theory to me.

 

[schonelucht]

From this post:
Tesla just dumped a ton of new CPO's on it's site
It sounds like maybe they wanted to free up delivery specialists to focus on new cars until the quarter was over.

A good friend of mine was manager of a well known fastfood chain next to the stadium of a well known football club. The franchise agreement obviously forced them to always offer the full menu. Yet on match day they rather wanted to dumb down the menu to the one burger that was the easiest to make for the most margin since foot traffic would be huge. So what they did on those game mornings was to strip the store of all advertising and menus and replace it with just pictures of the burger they particularly wanted to sell. Worked wonders. The full menu was technically still available but 95% of the orders were for what they wanted to sell. I believe Tesla is using the same marketing play when it picks which CPO/regular inventory deals it advertises on the website.

 

[MrAustraliaTax]

2) Tesla does not “adjust” cars. They discount the price based on time, mileage, and condition. The higher the discount, the older the car is and the more miles it has. We also see discounts if the price of a model drops (I.e. the base for a P100D drops by 10k). Inventory cars are not quite going to be new, but are treated as such by tax law etc. Mine had several small imperfections when I got it.

3) Tesla employees are not allowed to post online about discounts. I have several contacts that I ask to help me find cars for friends and then pass those cars onto the community.

4) if you have any other questions or want help finding a car with a discount, PM me.

Your post makes much more real world sense if we just swap the words adjustment and discount, as I have done above.

Now if you'll excuse me, I am going shopping for a new TV with a post Christmas price adjustment.

 

[xborg]

Age is subjective. They can make a spare 1000 units and store them in Birmingham, for example. End of quarter rolls around and they can be made available at big "age" discounts. I have seen 50 mile offers with 3-4 months or age (lower vin #s) offered with big discounts over $10k and in the light of the P90DL discontinuance last year, $30k or more discounting. Piles of input parts are not worth anywhere near the value of finished cars. Housing cars to age and then discount at end of quarters to make the sales number is the embodiment of planned discounting.

Exactly! This +1

Especially very true for European market. For example, Tesla UK is ordering popular specs and they are listing them as inventory on the website before even those cars came to the UK. My friend has bought an "inventory" car with a price adjustment, and he has to wait 3 weeks to get the car because it was in transit. And the car was brand new. No wear tear at all.