How Does Tesla Operate?

[UkNorthampton]

Tesla operates with digital self-management. Some people thrive in this environment and can accomplish great things, far beyond the possibilities in a traditional environment with mid-level human managers over-seeing the worker bees. And some don't.


It appears to me that Tesla is quietly, {at least as quietly as possible}, moving toward customer service operating with digital self-management. Customers are provided all of the tools necessary to solve issues, if any, with their Tesla vehicle. There are lots of benefits to this approach and if Tesla can make it work, as they have with so many innovations, it could turn out to be a major step in making the world a better place. I'm a bit nervous about it, but going on two years, so far, so good.

Being an old fart, I happily drive past half-a-dozen general merchandise stores that force customers to scan and check out their purchases and do my business at stores that let me pick out what I want and then they scan and bag the merchandise and take my money, so I don't feel like I'm working as an employee of the store. But I'm told the people of two or three generations younger than me think self-checkout is wonderful?

UK - no-one bags anything for you except in some exceptional circumstances.

I generally prefer staffed supermarket checkouts as I buy a lot of loose fruit and veggies and some unusual stuff, but most people (according to some UK research) prefer self-service tills.

As usual, a middle ground would probably be best.

For me the Tesla experience makes so much more sense. I've never haggled (successfully) for a new/used car from a dealership - normally I walk out in disbelief and/or disgust. I've either bought fixed price new or bought second-hand from private sellers.

I would NEVER buy from a dealership due to my experiences. Much easier and more thorough to do research at home - it's a big purchase and it deserves a calm and rational state of mind.

 

[yessuz]

in short - it operates same as buying your phone online

you could test drive normal SR model and in LR you would get more power, acceleration, range - all other things same

 

[KennethS]

I’m glad we’re in agreement that Tesla do in fact offer incentives

You must be a lot of fun at parties...

 

[Js1977]

They do. And when you get a deal online you take it to your local dealer and use it as a stick to beat them with to get them to offer an even better deal

And hope you never have to go back there for service.

I'm not convinced dealers are anything like how they used to be.

Yes they are because their business model has not changed. They are more interested in selling you a finance and service package amongst other things other than the car and the only time they pre register cars is to get their bonus so nothing new really.

 

[UkNorthampton]

I thought most people just go on carwow or similar, enter the spec they want and get the lowest price bid? I'm not convinced dealers are anything like how they used to be.

If I had to buy a new or used car from a dealership, then carwow/drivethedeal and others would be my first port of call. Before that though, I'd probably use an auction-house buyer for used cars or a leasing company for new cars.

As you point out, this is a spec/price comparison within the buyer's control, without physical presence of someone incentivised to maximise profit.

I don't know that many people who buy new/used from dealerships. Most people I know buy second-hand privately and keep cars for many years. Last few buys from people I know have been bad for them. Cars breaking down soon after purchase and at least one court case. Really off-putting and I can see why leases are popular (expensive, but less perceived risk).

For me, Tesla experience was great and very similar to buying a grey import new from Germany decades ago (except print advert and phone). It could be improved, but better than alternatives I've experienced.

To the OP's post, MG dealership might be better than BMW/Audi dealerships. Less upselling, option pack upon option pack to get the actual options that are needed and the price going up hugely.

 

[GeorgeSymonds]

Yes they are because their business model has not changed. They are more interested in selling you a finance and service package amongst other things other than the car and the only time they pre register cars is to get their bonus so nothing new really.

You are aware Tesla pre-register cars too? You don't get lots of ex demo cars with no miles driven any other way.

They all play games, and whilst I can understamd the sentiment of haggling discounts not being a good thing, the Tesla approach to just drop list prices has been transfered directly to my pocket in extra depreciation. Maybe a little under the covers massaging of supply and demand is a good thing for the industry rather than the bottom falling out the market thts happened the way Tesla are doing it.

It's an appealing notion to think that an industry thats developed over 100 years had got it all wrong and a new upstart tech seller has it all right, but maybe, just maybe, there are elements of the old way that were actually beneficial.

 

[UkNorthampton]

You are aware Tesla pre-register cars too? You don't get lots of ex demo cars with no miles driven any other way.

They all play games, and whilst I can understamd the sentiment of haggling discounts not being a good thing, the Tesla approach to just drop list prices has been transfered directly to my pocket in extra depreciation. Maybe a little under the covers massaging of supply and demand is a good thing for the industry rather than the bottom falling out the market thts happened the way Tesla are doing it.

It's an appealing notion to think that an industry thats developed over 100 years had got it all wrong and a new upstart tech seller has it all right, but maybe, just maybe, there are elements of the old way that were actually beneficial.

Regarding depreciation, I've seen a variety of estimates that Tesla will likely reduce Cost Of Goods Sold (COGS) by 6-12% per year (10% being most often quoted in what I've seen/read).

If that's the case and Teslas get cheaper to make, it will have an effect on depreciation OF ALL CARS and even lease costs. The last few years of shortages and rebound have been mad, so we'll only know in a year or two.

I don't need a new Tesla, if I did I might lease it now. More likely, I'd buy a bargain second-hand one. Surely cheaper new or used Teslas must be having a huge effect on depreciation on competitors as well? My one caveat to that is that second-hand buyers seem more conservative and seem to want to buy a newer version of what they have now. I can see that in 2 people I know that always buy VWs/BMWs of a certain type.

 

[Js1977]

You are aware Tesla pre-register cars too?

Yes but they dont do so to obtain commission/bonuses from the manufacturer so what is your point?

the Tesla approach to just drop list prices has been transfered directly to my pocket in extra depreciation

Swings and roundabouts... Its not been just Tesla that done this and others have driven prices down even if you dont want another from the brand

there are elements of the old way that were actually beneficial.

Oh please do feel free to mention some

 

[GeorgeSymonds]

Yes but they dont do so to obtain commission/bonuses from the manufacturer so what is your point?

They do it so somebdy gets a bonus, why else would anybody do it? That person might be Musk, it might be the country manager, but if they didn't care, they wouldn't do it;

Swings and roundabouts... Its not been just Tesla that done this and others have driven prices down even if you dont want another from the brand

Tesla have absolutely tanked prices of their cars more than anybodies, the whole market is down but Teslas down more than most. And you don't knock 20 grand of a 100k MS list price with the argument you're trying to give the cars mass appeal and keep a straight face.

Oh please do feel free to mention some

Given you're responding to a post where I'd just set out the reasons I refer you back to that post

As for others, a proper delivery handover where the technology will be explained to you if required, the ability to ask a human about what some of the features do before buying, You could also argue a throat to choke if a feature doesn't exist that you'd been sold keeping a modicome of truthfullness. I very much doubt a sale person would attempt to sell FSD as they'd be in fear of their life after a while. Imagine hard selling an 8k option that doesn;t exist and fearing customers coming in to complain all day long? I'm not saying the sales model is better, just that managing the market through highs and lows has advantages rather than knee jerking the prices around to meet global quarterly targets. With the traditional dealer model that short term buffering is managed at a local level. People seem to think preregistering cars means they're not sales and never will be, Thats bogus, it just means they've now got to clear their prereg stock and hit new stock quotas in the next period making their life harder.

 

[Js1977]

They do it so somebdy gets a bonus, why else would anybody do it? That person might be Musk, it might be the country manager, but if they didn't care, they wouldn't do it;

Ok... so he sells his cars to himself... including vat I assume to get a bonus.... pull the other leg will you

Tesla have absolutely tanked prices of their cars more than anybodies, the whole market is down but Teslas down more than most. And you don't knock 20 grand of a 100k MS list price with the argument you're trying to give the cars mass appeal and keep a straight face.

I dont know where you get your stats from but that is certainly and is what ive been seeing. And who cares about a LHD model S? and you talk as you bought one of those as well?.... Im sure who ever bought them if it represented good value it still did there after?

As for others, a proper delivery handover where the technology will be explained to you if required,

Yes, Ive had those too and enjoyed the bottle of wine. Wish they had given me more wine to drown the sorrows of every visit there after. YMMV.

the ability to ask a human about what some of the features do before buying

If you know about the features why do you need to ask?... besides they are quite happy to give you a manual and even happier to mention it when things go wrong.

So I only took away two things of the good old ways there and you ranted the rest.... bravo

 

[Zilla91]

Wish they had given me more wine to drown the sorrows of every visit there after.

You’re a sensitive chap, aren’t you?

 

[Js1977]

You’re a sensitive chap, aren’t you?

Did someone rattle your cage?

 

[Zilla91]

Did someone rattle your cage?

No. But your local Hyundai dealership sounds like it rattled yours

 

[Js1977]

No. But your local Hyundai dealership sounds like it rattled yours

Oh yes indeed but that is just the latest one.. if Im being honest

 

[MrBadger]

Is this the standard of customer service that one can expect from Tesla? The whole organisation seems to be shrouded in mystery and secrecy, with no named local "salesman" involved.

One thing not mentioned is that Tesla use ‘influencers’ to sell their cars. They may not be official Tesla employees, but they certainly get kick backs, even if it’s just early access to new goodies that will boost their profile/views. Thankfully a few unbiased ones, but take many with a pinch of salt.

Likewise many Tesla share holders on forums who only ever see Tesla through rose tinted spectacles or even a completely different Tesla. Thankfully UK does not seem to have any noticeable short sellers.

Tesla often do things differently, it doesn’t suit everyone. Often what they do, they do either prematurely and greatly exaggerated capabilities and/or time frames. All at the sole risk of the purchaser. They never seem to take blame for their decisions. They have even been known to intentionally disable existing functionality, or deliver what they advertised. You can get in your car one day and it will be functionally very different to what it was the day before. Some love the constant changes to their car, some even gloss over things when they don’t go right, but if you just want the car that you ordered and paid for, or have a familiar experience at the service centres, Tesla may not be the choice for every one.

At the end of the day, they are a company like many others whose primary focus is to make money, even if that is at the expense of what the average consumer would expect. Many benefit from that, many do not.

 

[GeorgeSymonds]

Ok... so he sells his cars to himself... including vat I assume to get a bonus.... pull the other leg will you

Please tell why they'd pre register a car, something you don;t appear to deny but seem to resist any notion that they'd do it for financial reasons

And this is the MY depreciation, erm.. I was going to say curve but straight line is probably a better description. I believe the winter olympics are even considering it for one of the downhill races only they're worried about how steep it is

 

[Kansalis]

And this is the MY depreciation, erm.. I was going to say curve but straight line is probably a better description. I believe the winter olympics are even considering it for one of the downhill races only they're worried about how steep it is

What's the context for your chart? Average market price of what? Not disputing it, just curious what it relates to. Seems odd that it went up >5k in the first 6 months then down from there, so it doesn't look like a depreciation curve of a car bought in what appears to start Jan 2022.

 

[Js1977]

Please tell why they'd pre register a car, something you don;t appear to deny but seem to resist any notion that they'd do it for financial reasons

You mentioned them pre registering them not me.... Maybe you car to explain as to why.

So you're moving on to the model Y now... you would make a good goal keeper

What do I care about depreciation you may ask... nothing is the answer because I bought the car new and paid the vat... Would have bought it used If one was available and would still happily buy one now for a bargain. Also bought the Mrs two Model 3's for similar previously and still not complaining.

Bought a two year old top of the range ionic's for the children for half the money as well... again, its swings and roundabouts...

 

[btc1k]

Please tell why they'd pre register a car, something you don;t appear to deny but seem to resist any notion that they'd do it for financial reasons

And this is the MY depreciation, erm.. I was going to say curve but straight line is probably a better description. I believe the winter olympics are even considering it for one of the downhill races only they're worried about how steep it is

View attachment 1015587

BREAKING: new cars depreciate.....

AA: The average new car will have a residual value of around 40% of its new price after three years (assuming 10,000 miles/year) or in other words will have lost around 60% of its value at an average of 20% per year.

 

[M1tch]

Can anyone explain to me how Tesla operates?

On the back of a fag packet…….. while high on illegal narcotics and alcohol normally.

I do like my car though