For AWD owners wanting a P3D-

[CAmaninacan]

For the Q&A section of the investor call, can someone ask about an unlock? Is that the time to ask it?

 

[Knightshade]

For the Q&A section of the investor call, can someone ask about an unlock? Is that the time to ask it?

Seems that'd be a perfect time, in the context of, I dunno let's say they've sold ~275k Model 3s by now, and let's say 1/2 are AWD non-P, and let's say only 1/3 of AWD owners want it, and let's say they could charge 5k for thus unlock... that's still over 229 million dollars of revenue that'd be almost entirely profit.

Which if you left out Q3 2018 is more profit than Tesla has ever made- total- in the entire history of the company combined

So why wouldn't they do that for investor value?

 

[rlb4]

Seems that'd be a perfect time, in the context of, I dunno let's say they've sold ~275k Model 3s by now, and let's say 1/2 are AWD non-P, and let's say only 1/3 of AWD owners want it, and let's say they could charge 5k for thus unlock... that's still over 229 million dollars of revenue that'd be almost entirely profit.

Which if you left out Q3 2018 is more profit than Tesla has ever made- total- in the entire history of the company combined

So why wouldn't they do that for investor value?

Someone needs to get on that. Earnings call is this Thur 7/25.

 

[happyzod]

Just stop!...most people on this thread was curious to see if they would do that for him cause we'd be scheduling next...wasting the SC time?..are you kidding, try calling them for an appt or their parts department!!...Ive lost 1/1000 of my life waiting for them to answer the dang phone, which they never do.

Antics like that are probably why they don't answer the phone to begin with. I find AWD owners tend to be the biggest whiners. They made a big fuss about unlocking their cars after their 5% performance boost got delayed a patch. Every price cut, they whine and beg and scream about unlocking their cars. Then they bombard all channels of communication to again whine about unlocking their cars. Just stop.

 

[diggity]

Antics like that are probably why they don't answer the phone to begin with. I find AWD owners tend to be the biggest whiners. They made a big fuss about unlocking their cars after their 5% performance boost got delayed a patch. Every price cut, they whine and beg and scream about unlocking their cars. Then they bombard all channels of communication to again whine about unlocking their cars. Just stop.

Dude, just STFU and go back under the rock that you came from.

 

[Knightshade]

Antics like that are probably why they don't answer the phone to begin with.

The fact Tesla fired most of the front office staff to cut costs is why they don't answer the phone. There's literally nobody available to do it.

When I picked up my Model 3 Sept 2019 there were 4 guys working the SC plus the techs...usually 3 handling customers in person and on the phone, and 1 handling anything needing to go back/forth to the techs or getting parts folks were picking up.... now there's 1 guy and he's usually got half a dozen customers physically in front of him to deal with- he ain't got no time for telephones!

 

[minsup23]

What does the ignore function do?

 

[Casmium]

I only imagine this happening under the following circumstances.
1. Once a large amount of cars are passed the 4 year warranty or the milage where the battery and inverters are not covered, you don't want to generate some money only to payback twice as much in warranty costs.
2. Sales slow down and they need more money
3. They only do it on used CPR AWD if there is demand for p3- models that lets them generate more money.

 

[MagnusMako]

happyzod not happy. Relax dude, this is a win win for everyone if it happens.

Thanks jebinc for getting that info!

Back in 2015 when Tesla offered the Ludicrous after delivery upgrade for $5k, I'm pretty sure the rear drive unit needed to be changed to a bigger one. If a performance upgrade for the 3 requires a similar change, that should be an easy swap. But maybe Tesla doesn't want to do that and get inundated with service calls.

The upgrade consisted of switching to Inconel battery contactors and an electronically controlled pyro-activated fuse in the pack electronics. No drive units were ever needed to change out and they gained 3/10ths of a second to 60 (3.1 to 2.8). The cost was 5k to current owners and 10k for new buyers.

 

[AlanSubie4Life]

I can see Tesla starting with something like a $4-5k upgrade price and then ratcheting it down over time to the current (new) $2k value, to maximize their revenue. Should reduce the upset from existing Performance owners, who are also whiners, since they are Tesla owners. JK.

 

[Knightshade]

I only imagine this happening under the following circumstances.
1. Once a large amount of cars are passed the 4 year warranty or the milage where the battery and inverters are not covered, you don't want to generate some money only to payback twice as much in warranty costs.

battery and drive units have an 8 year warranty. Nor is there currently any data suggesting Ps have tremendously higher warranty costs (indeed if that were so they wouldn't have pushed an OTA update to add more power to them for free)

 

[jebinc]

Update #2

This just in from the Tesla rep I was chatting with Closing the loop on this investigation -

"We looked into the thread and it looks like the situation where it occurred was because the vehicle purchased was supposed to be a performance model but it wasn't configured correctly. They configured it properly to a performance model. There was no upgrade that was performed. We looked further into it and confirmed it is not a possible upgrade.

Sorry it's not the news you were looking for. I'll go ahead and cancel your appointment with your permission."

My Reply

"I guess so. By chance did your manager have a sense if Tesla is considering the flash upgrade as it doesn't appear hardware is required to upgrade the recently delivered LR AWD to M3P- status. Thanks for letting me know, John!"​

Final Update - Last reply from Mobile Service

“He said that there has been no communication from Tesla regarding any non performance to performance vehicle upgrades for Model 3. We looked around trying to find any documentation indicating any similar upgrades for Model 3 currently available that might have been interpreted differently by customers and we couldn't find any such info or means of charging for such an upgrade. My apologies John!”

 

[M109Rider]

Seems that'd be a perfect time, in the context of, I dunno let's say they've sold ~275k Model 3s by now, and let's say 1/2 are AWD non-P, and let's say only 1/3 of AWD owners want it, and let's say they could charge 5k for thus unlock... that's still over 229 million dollars of revenue that'd be almost entirely profit.

Which if you left out Q3 2018 is more profit than Tesla has ever made- total- in the entire history of the company combined

So why wouldn't they do that for investor value?

Even if that same one third purchased at $2,000
That’s still close to $90 Mil.

That’s around the equivalent 2,000 cars sold, but without the delivery and other costs associated. So way more profit than even selling 2,000 cars.

I think your numbers are likely conservative as well, so I’m hoping they would sell this upgrade for $2,000 and get about 69,000 AWD owners to jump on it.
That’s about $138 mil.
That’s about the equivalent of selling about 2,760 cars, only all profit.

I hope we see this option

 

[WilliamG]

Even if that same one third purchased at $2,000
That’s still close to $90 Mil.

That’s around the equivalent 2,000 cars sold, but without the delivery and other costs associated. So way more profit than even selling 2,000 cars.

I think your numbers are likely conservative as well, so I’m hoping they would sell this upgrade for $2,000 and get about 69,000 to jump on it.
That’s about $138 mil.
That’s about the equivalent of selling about 2,760 cars, only all profit.

I hope we see this option

I don’t think it’s in Tesla’s interest to sell the unlock for $2k, to be honest. I don’t see it happening, but feel free to quote me if I’m wrong.

 

[Knightshade]

I don’t think it’s in Tesla’s interest to sell the unlock for $2k, to be honest. I don’t see it happening, but feel free to quote me if I’m wrong.

At 2k? no it doesn't. This is one case where after-delivery price parity would hurt them (assuming they plan to continue offering the P3D- as a standalone model... otherwise this objection goes away)

At 4-5k it makes a tremendous amount of sense though- capturing a lot of almost pure profit revenue for nearly zero work/cost.

 

[DNorris89]

I don’t think it’s in Tesla’s interest to sell the unlock for $2k, to be honest. I don’t see it happening, but feel free to quote me if I’m wrong.

Just curious to hear your reasoning?

 

[scubastevo80]

I don’t think it’s in Tesla’s interest to sell the unlock for $2k, to be honest. I don’t see it happening, but feel free to quote me if I’m wrong.

Care to elaborate why? I think you'll find people who don't want to fork out money for all the upgrades on day 1, but would like the ability to upgrade at a later time. There's no downside to offering an unlock so that people who have AWD now have a P3-. As M109Rider said above, it's free money in Tesla's pocket given it might be the flip of a software switch.

 

[Msjulie]

Care to elaborate why? I think you'll find people who don't want to fork out money for all the upgrades on day 1, but would like the ability to upgrade at a later time. There's no downside to offering an unlock so that people who have AWD now have a P3-. As M109Rider said above, it's free money in Tesla's pocket given it might be the flip of a software switch.

Guessing that revenue, though important, pales compared to unit sales at-this-time ... but they are "weird" when it comes to the newly kinda sorta available Stealth Performance. I can see they want to sell the costlier unit but are seeing if they will just sell more all around if they beef up the AWD a little..

 

[WilliamG]

Care to elaborate why? I think you'll find people who don't want to fork out money for all the upgrades on day 1, but would like the ability to upgrade at a later time. There's no downside to offering an unlock so that people who have AWD now have a P3-. As M109Rider said above, it's free money in Tesla's pocket given it might be the flip of a software switch.

I think it makes sense to offer it, but not at $2k. But we'll see. I think Tesla would rather you trade in your car toward a P model.

 

[scubastevo80]

I think it makes sense to offer it, but not at $2k. But we'll see. I think Tesla would rather you trade in your car toward a P model.

I'm sure Tesla would, but I'm sure they have stats on the delta between those who upgrade AWD to P's vs those who would upgrade their existing cars.