How many Roadsters will be produced?

[bonnie]

From Quarterly Report 10.Aug 2010:

We have a supply agreement with Lotus, which we amended in March 2010, pursuant to which we are obligated to purchase a minimum of 2,400 Tesla Roadster vehicles or gliders over the term of the agreement, which will expire in December 2011.

We currently intend to manufacture gliders with Lotus for our current generation Tesla Roadster until December 2011. We intend to use these gliders in the manufacturing of the Tesla Roadster to both fulfill orders placed in 2011 as well as new orders placed in 2012 until our supply of gliders is exhausted. Accordingly, we intend to offer a number of Tesla Roadsters for sale in 2012. To the extent we wish to sell additional Tesla Roadsters with the Lotus gliders beyond the 2,400 we have already contracted for, we will need to negotiate a new or amended supply agreement with Lotus but may be unable to do so on terms and conditions favorable to us, if at all.

We do not currently plan to begin selling our next generation Tesla Roadster until at least one year after the launch of the Model S which is expected to be in production in 2012. We intend to manufacture our next generation Tesla Roadster entirely in our own facilities. The Tesla Roadster is a high-end luxury automobile with a current effective base price of $101,500 in the United States, assuming and after giving effect to the currently available United States federal tax credit of $7,500 for the purchase of alternative fuel vehicles. Continued difficult economic conditions, competition from third parties and the availability of the Model S could result in depressed sales of the Tesla Roadster.

Yep, this is the heart of the matter, Suxxer. When you look under the spin, it's a simple vendor issue. My understanding has been that Lotus has been very difficult to deal with and it's just not worth negotiating to amend the supply agreement. I believe Tesla does have (or will have) a total of 2500 gliders (100 more than originally contracted for) - after that, game over.

 

[bolosky]

Back on topic, I heard from a Tesla salesguy yesterday that there were 3 or 4 remaining US build slots, plus about 90 cars in inventory and then various odds and ends like demo cars, and then that's it (at least for the US). I also heard a rumor that Tesla might start buying back Roadsters and reselling them. I wonder how many are really for sale, though. Mine's certainly not.

 

[AndrewBissell]

I had the 1400 end number for the US confirmed by a Tesla employee today. He also emphasised that there are plenty of cars to sell in Europe and Asia still, until a total of 2400 are reached worldwide.

 

[dwegmull]

I was at the Menlo Park store last week: it is packed with Roadsters. I'm not sure if they are all spoken for but there are at least 40 of them. I have never seen so many of them at the same time. Usually, there are at the most 10 or so there. I would not want to be the one paying the insurance on that store!

 

[strider]

If Tesla are really going to stop selling the Roadster in US, real soon, and with Model S a year or so away, what are they going to do with all those fancy showrooms?

No kidding. How's that going to play out?

Customer comes in, "Oh, I've heard about you, the Roadster is really cool. I'd like to buy one."
Tesla: "Oh, uh, we don't have any more to sell you. You can put down a deposit on a Model S."
Customer: "Oh yeah? When will that be available?"
Tesla: "Based on current reservations, 2013."
Customer wanders down to Porsche dealership...

Spending tons of $$ on showrooms when they don't have any products to sell. Smart move Tesla.

 

[dpeilow]

Best get the approved used programme underway...

 

[Doug_G]

Spending tons of $$ on showrooms when they don't have any products to sell. Smart move Tesla.

I think they'll have a much worse problem if they don't ramp them up substantially prior to Model S release. They're gonna have to ship thousands of cars, not just build them. There's probably no easy way to do this - you have to build an organization, train people, etc.

 

[markwj]

No kidding. How's that going to play out?

Customer comes in, "Oh, I've heard about you, the Roadster is really cool. I'd like to buy one."
Tesla: "Oh, uh, we don't have any more to sell you. You can put down a deposit on a Model S."

Tesla: You can design your new Roadster on our new "Design Studio" - even see virtual pictures of it on the road. But, you can't buy it!

 

[Jaff]

I think some of you are being a little unfair.

I'm sure that TM is getting the Model S to market as quickly as possible.

I'm also sure that TM would be like to be selling Roadsters for a lot longer than they will be able to...it is not TM's fault that the supply of gliders is being cut off so far in advance of the Model S's availability.

Hindsight is 20/20 guys...

 

[markwj]

I'm also sure that TM would be like to be selling Roadsters for a lot longer than they will be able to...it is not TM's fault that the supply of gliders is being cut off so far in advance of the Model S's availability.

Jaff,

The problem/question is assuming the current sales figure of 1,800 is correct, and given the limit we know is 2,500, that leaves 700 left until end of 2011 / early 2012. So, if the rumors of US sales stopping now are true, then all the remaining 700 are for international sales? Why? Is it because they can make more money selling internationally (a perfectly valid business reason)?

 

[NigelM]

I bought my Roadster knowing they would be ending production (I guess everyone did); I bought it because it's a) an absolute joy to drive and b) I feel there has to be some of us putting our money where our mouths are and leading the way to an oil-free future......I didn't buy it as an investment but I also figure that a well maintained Roadster may well become a collectors item.:wink:

In the meantime the only worry could be that Tesla wouldn't maintain a supply of parts (especially batteries), but we all bought on "faith" and "belief" in Tesla Motors and its survival (growth!) as an EV manufacturer. Nothing changed, so what's the concern?

 

[Jaff]

As you stated " Why? Is it because they can make more money selling internationally (a perfectly valid business reason)?" so, what difference does it make Mark...whatever the reason, the decision is TM's to make, not ours. I don't see the problem here...if you wanted a Roadster, you only had a few years to order one?

Jaff,

The problem/question is assuming the current sales figure of 1,800 is correct, and given the limit we know is 2,500, that leaves 700 left until end of 2011 / early 2012. So, if the rumors of US sales stopping now are true, then all the remaining 700 are for international sales? Why? Is it because they can make more money selling internationally (a perfectly valid business reason)?

 

[Jaff]

I couldn't agree more Nigel!

I bought my Roadster knowing they would be ending production (I guess everyone did); I bought it because it's a) an absolute joy to drive and b) I feel there has to be some of us putting our money where our mouths are and leading the way to an oil-free future......I didn't buy it as an investment but I also figure that a well maintained Roadster may well become a collectors item.:wink:

In the meantime the only worry could be that Tesla wouldn't maintain a supply of parts (especially batteries), but we all bought on "faith" and "belief" in Tesla Motors and its survival (growth!) as an EV manufacturer. Nothing changed, so what's the concern?

 

[Jaff]

The only folks who need to be worried by this are those who want to acquire a Roadster but have not yet placed their order.

 

[Slackjaw]

The only folks who need to be worried by this are those who want to acquire a Roadster but have not yet placed their order.

I agree - and am beginning to slightly regret starting this thread now that it has become so morbid - but for me there's also a sense of Something-Or-Other here because a year ago my Wife and I would not have bought a Roadster, and a year from now we won't be able to... For quite different reasons.

I think I've already mentioned how we did test drives of an Aston Martin DB9, Jaguar XKR and the Tesla Roadster all with 24 hours of one another (and almost cancelled the Tesla test drive because we'd "decided" on the Jaguar). After driving the Roadster for about one minute I felt it was probably the most awesome man-made object I had ever touched. And now, even though ours isn't here yet, I have a huge sense of relief that we were able to make this leap of faith when we did. Like "Woah! That was so close!"

I emailed Jeff at Tesla after the test drive and said (paraphrasing a Buddhist poster I once saw) that I "wanted a Roadster like a man whose head is held underwater wants the air".

Eberhard said in another thread "If you cannot afford a Tesla, please don't to a testdrive. Otherwise you will left in pain.". Brilliantly put... I'd have been selling my my body parts on ebay (except one arm, and my right leg, I guess) if I had discovered the Roadster a year earlier.

 

[markwj]

I don't see the problem here...if you wanted a Roadster, you only had a few years to order one?

I'm ok. I'm in Hong Kong (falling into the international category), and I ordered mine already (Thunder Gray #0569 picking up today - woohoo).

I think we're all trying to second-guess Tesla here. Trying to work out what they are going to do with charge ports for Model S, plans for roadster, etc.

An interesting point you make, though. US buyers have had years, and a year or so head-start over the international buyers. Maybe it is just 'fair' that the last year or so of production goes international. Although I suspect business and financial reasons prevail.

 

[benji4]

With the price of the base Roadster at $150,000 in Japan at the current exchange rate, no wonder Tesla would like to sell a few more of them here rather than giving them away for $110,000 in the US. Their profit margin jumps from $20,000 to $70,000 per car, no questions asked. Earthquake/Tsunami was a crushing blow unfortunately, a lot of people sitting on the fence ended up not buying.

 

[zack]

You and I both know that's not the way currency works. Musk is making a point. I love it.

 

[vfx]

... said (paraphrasing a Buddhist poster I once saw) that I "wanted a Roadster like a man whose head is held underwater wants the air"....

:love::biggrin:

 

[Slackjaw]

:love::biggrin:

Thanks

Back on topic, is that it, then?

Back on topic, I heard from a Tesla salesguy yesterday that there were 3 or 4 remaining US build slots...

If bolosky was right, then today (Thursday May 5th) or tomorrow probably the very last custom US roadster order will be placed, or it may have happened yesterday. That's quite something.

It would be interesting to hear from anyone who tries unsuccessfully to order a custom US Roadster and could confirm that it's no longer an option.