How Tesla Managed to Alienate Their Most Loyal Customers

[DaveT]

I do believe that SOMEONE at that massivelyexpandedatthelastminute event should have taken the initiative when the press event ran long to jump up on the stage to explain and apologize for the delay. It needn't have been Elon, and he may well have assumed that someone (like the Event Coordinator or better yet, Ricardo Reyes) had done so. Where WAS Ricardo?

Actually, I brought up this after the event to one of the main event coordinators. I suggested that someone should have gone up on stage or they could have at least showed a slide that let people know they were running late. She basically told me that Elon was a busy man and that people can/should wait. I know that it sounds ridiculous but I was also flabbergasted by her reply. And the more I thought about it, it just seemed to reflect the overall attitude of Tesla to Model X reservation holders... "we're busy making the car, people can wait."

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Without rehashing my whole Tesla experience, I just want to say that I largely agree with DaveT on this topic.

I've been an X reservation holder for 2 years as of last week, but will likely be canceling that reservation shortly. I don't fault Tesla for the delays (when I reserved, deliveries were to begin 'in 2014'). Making this vehicle was, as Elon has said, extremely difficult. I do wish communication had been handled better (on this and many other fronts). For nearly three years now I've said that their poor communication would bite them if not corrected by the Model 3 timeframe, and we're about to open those floodgates.

From the lack of visible service center expansion to keep up with sales, to changes in Ranger policy, to the ESA 'mistake' debacle in recent weeks, to continued drive train replacements at low mileage #s, I just don't have the level of confidence required to buy an X at this moment. I love Tesla's goals, I think Musk is brilliant and is trying on three fronts to do very important things for the future of the planet. I think Tesla will get there and become a high-volume EV manufacturer who leads the way for quite a long time to come. I'll be reserving a Model 3 as soon as I can.

But the company has its issues, and I hope that they address them before the competition really gets going. The frustrating part to me is that the communication piece could be made so much better with a relatively small amount of extra effort/spending.

Definitely agree with this. It really doesn't take much extra effort to send the occasional email that gives a real update on Model X, any reasons for delay, expected release, etc. Tesla doesn't need a 100 people on this. They just need 1 or 2 capable people entrusted with the task and given the authority to do so. Somewhere along the command chain, something is messed up IMO.

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Its absolutely about money and resources. The company has a fixed amount of money at its disposal and a finite number of sources to they can bring to bear. They cannot just go hire a bunch more DSes without paying for them somehow.

And just for context, I have handled marketing and communications for my day job and off the top of my head I can tell you a dozen things I wish they were handling better, but I also understand the business side of things and understand why they might be making these choices.

No need to spend extra money. As many people have mentioned already, it's really just about sending more frequent emails with more transparent updates. Additional cost = zero.

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We are not talking about George or Jerome--presumably they left for reasons not having to do with compensation (must be nice).

We are talking about trading delivery specialists for engineers. To support a owner base of 100,000 owners, one or two new DS are not going to make a difference, so say you add 20. Glassdoor says that the average salary for a DS is $53K or about $80K loaded cost or $1.6M in total payroll. The same site says average salary for an engineer is $111K or $166K loaded cost per engineer. So, as an owner of the business, where do you make your investment: 20 new DSes or 10 new software engineers--which one is more critical path for the success of the company?

We're not talking about hiring more delivery specialists or taking any resources from engineering or anything. Existing Tesla folk (whoever in charge of communicating with X reservation holders) really should have sent more frequent emails with more detail. If nobody brings it up and complains, it'll likely happen again with Model 3.

 

[DaveT]

Here are some more recent thoughts on this topic.

First, I think even GM could have done a better job with communication w/X reservation holders than Tesla did. In fact, I think any auto maker would have done a better job than Tesla at updating their own reservation holders. On a scale of A to F, I think Tesla earned an F grade on this. It's the combination of lack of updates, keeping reservation holders in the dark, not explaining delays, having vague/unclear answers for reasons for delay when asked, etc. It all just led to a very subpar experience. Now I'm not saying that GM could have made a better car than Tesla. Obviously that's not the case. The Model X, I believe, will prove to be an awesome car. But the product is not just the car but the overall experience that the customer has with the company as well. So, in that regard it's really too bad that Tesla choose to keep so quiet and alienate it's customers during this process. They could have managed it a lot better. And I think it's a big deal because it has a lot of implications for Model 3 and the future if not corrected.

Second, I could change my mind but at this moment I'm now thinking responsibility for this communication mess largely falls onto Ricardo Reyes, their VP of Communication since he's a direct report to Elon and is in charge of all of Tesla's communications, even to reservation holders. When faced with Model X deals, Mr Reyes should have informed Elon that this would cause a lot frustration/angst among customers and Mr Reyes should have implemented a plan to keep reservation holders updated more frequently and with better info. Somehow, this didn't happen. IMO Mr Reyes should have been watching out for Elon's back and tried to mitigate the harmful effects of the X delays by adjusting/improving their communication approach to reservation holders. In this regard, Mr Reyes let Elon and Tesla down. Execs at the top level have no excuse. They're ultimately responsible. Now, I probably don't have all the info and my assessment could be very wrong. But if I am seeing things correctly then I think we need a new head of communications at Tesla. Someone who will show empathy to Model 3 reservation holders and someone who will have Elon/Tesla's back. (But again I could be very wrong on this as this is mostly conjecture on my part.)

Third, Tesla has a huge opportunity to build a ton of super loyal fans with the Model 3 reservation process. Model 3 reservation holders will be a captive audience and Tesla, if they steward the opportunity well, can really turn it into a goldmine. For example, if Tesla can put together some kind of regular communication with Model 3 reservation holders that's fun, informative and builds loyalty then Tesla can really grow their fanbase. One idea is Tesla can have a weekly video episode directed to Model 3 reservation holders. The weekly video episode could be 5-10 minutes long and each week they can feature an interview with a Tesla exec regarding the Model 3, or an interview with an engineer working on Model 3, or show a day in the life of a Tesla employee working on Model 3, etc. They don't have to show any sensitive/secretive material. Rather, they just need to include the reservation holders more into the process. Make them feel part of it. Make them feel like they value them. If Tesla can do this right, you're looking at hundreds of thousands of super fans who Tesla has cultivated by investing into a relationship with them. This doesn't have to cost a lot of money. In fact, I think small team of 2-3 people can take care of this. But it will have huge dividends, IMO. Contrast this to the "keep quiet" and keep-people-in-the-dark approach for the X, and it's a world of difference.

 

[Andyw2100]

You are not running Tesla and I'm willing to bet someone with your strategic and analytical skills would ever get hired by Tesla.

For that, I am super glad ! Thank God ! ( and that's coming from someone who is an agnostic ).

DaveT, like others willing to point out where Tesla can improve, is doing Tesla a service by providing constructive criticism. I and many others here appreciate his thoughts and his posts.

As for your assessment of DaveT's employment opportunities with Tesla, based on the communication skills Tesla has demonstrated from time to time, and your sentence above which clearly doesn't mean what you intended it to, you may want to get your resume in ASAP!

 

[eloder]

Whenever I see posts like this, however legitimate, I feel that people have lost touch of what happens when you try to buy an EV from any other company.

Do you want me to go over my story about how I had a nine month delay of a car that was already in production for three years before I ordered it after taking a non-refundable deposit? Because that's what happens when you order an EV from not Tesla.

I could go on about how my salesman knew nothing (with my current EV--not the one I walked away from above), how their chademo charger doesn't work with my car and how they don't care, how they attempt to overcharge on service, how I can only schedule service on the one day the EV tech is around, how the battery is degraded from day1 because they didn't have proper storage and charge levels on the car for the five months it was on the lot...

If you're doubting Tesla, it's simple--go buy an EV elsewhere. I'd much rather have an incredible amazing car--a lead Tesla will probably not lose for 5-10 years--then sometimes have hiccups, delays, or communications issues. Because right now, I get hiccups, delays, and communication issues buying an inferior car from local dealers. Most of these issues are only because you are an early adopter, and are not inherent to Tesla itself--being an early adopter has its share of problems. You will always run into delays, opaque communication, and the like with any technology pre-order, and Teslas are no different.

(I personally work in a tech-heavy field for a fortune 15 company. I can guarantee you this stuff still happens and can happen quite frequently for our millions of customers every single day, even for a highly mature and profitable company such as my own)

I am reserving a Model 3 the second the store opens locally. I will gladly take any delays or lack of communication in order to get Tesla-level quality and engineering. You have to take the package as a whole, and then realize that the grass isn't actually greener outside of Tesla for any competing EV right now.

If the downsides are too much for you, then perhaps waiting for the product to release and clear backorders may be more suitable. It's not intended to be a jab or anything, it's just the simple fact that for every person who is unhappy with Tesla, you have 20k+ people waiting in line who've waited the same 2-3+ years who'll gladly take your spot. I guarantee you that this will continue going forward, and Tesla is not going to fall behind the competition because of it.

 

[Fallenone]

Not sure what TM as a company will do but the store manager at my area is creating his own list of interested Model 3 reservation holders and plan to give update to us as we approach Mar 31. Hope he can keep it up till the release in 2017.

Here are some more recent thoughts on this topic.

First, I think even GM could have done a better job with communication w/X reservation holders than Tesla did. In fact, I think any auto maker would have done a better job than Tesla at updating their own reservation holders. On a scale of A to F, I think Tesla earned an F grade on this. It's the combination of lack of updates, keeping reservation holders in the dark, not explaining delays, having vague/unclear answers for reasons for delay when asked, etc. It all just led to a very subpar experience. Now I'm not saying that GM could have made a better car than Tesla. Obviously that's not the case. The Model X, I believe, will prove to be an awesome car. But the product is not just the car but the overall experience that the customer has with the company as well. So, in that regard it's really too bad that Tesla choose to keep so quiet and alienate it's customers during this process. They could have managed it a lot better. And I think it's a big deal because it has a lot of implications for Model 3 and the future if not corrected.

Second, I could change my mind but at this moment I'm now thinking responsibility for this communication mess largely falls onto Ricardo Reyes, their VP of Communication since he's a direct report to Elon and is in charge of all of Tesla's communications, even to reservation holders. When faced with Model X deals, Mr Reyes should have informed Elon that this would cause a lot frustration/angst among customers and Mr Reyes should have implemented a plan to keep reservation holders updated more frequently and with better info. Somehow, this didn't happen. IMO Mr Reyes should have been watching out for Elon's back and tried to mitigate the harmful effects of the X delays by adjusting/improving their communication approach to reservation holders. In this regard, Mr Reyes let Elon and Tesla down. Execs at the top level have no excuse. They're ultimately responsible. Now, I probably don't have all the info and my assessment could be very wrong. But if I am seeing things correctly then I think we need a new head of communications at Tesla. Someone who will show empathy to Model 3 reservation holders and someone who will have Elon/Tesla's back. (But again I could be very wrong on this as this is mostly conjecture on my part.)

Third, Tesla has a huge opportunity to build a ton of super loyal fans with the Model 3 reservation process. Model 3 reservation holders will be a captive audience and Tesla, if they steward the opportunity well, can really turn it into a goldmine. For example, if Tesla can put together some kind of regular communication with Model 3 reservation holders that's fun, informative and builds loyalty then Tesla can really grow their fanbase. One idea is Tesla can have a weekly video episode directed to Model 3 reservation holders. The weekly video episode could be 5-10 minutes long and each week they can feature an interview with a Tesla exec regarding the Model 3, or an interview with an engineer working on Model 3, or show a day in the life of a Tesla employee working on Model 3, etc. They don't have to show any sensitive/secretive material. Rather, they just need to include the reservation holders more into the process. Make them feel part of it. Make them feel like they value them. If Tesla can do this right, you're looking at hundreds of thousands of super fans who Tesla has cultivated by investing into a relationship with them. This doesn't have to cost a lot of money. In fact, I think small team of 2-3 people can take care of this. But it will have huge dividends, IMO. Contrast this to the "keep quiet" and keep-people-in-the-dark approach for the X, and it's a world of difference.

 

[Doug_G]

Moving some posts to snippiness

 

[strider]

Here are some more recent thoughts on this topic.

First, I think even GM could have done a better job with communication w/X reservation holders than Tesla did. In fact, I think any auto maker would have done a better job than Tesla at updating their own reservation holders.

One thing that is lost to so many on this board is that Tesla is NOT a car company. They are a Silicon Valley startup in every possible way. It's the way they think and the way they act. Everything you're complaining about is part and parcel to living in the bubble that is Silicon Valley. I've worked for several companies out here and none of them have ever shipped a product on time. None of them have been very good about communicating to their customers (or their employees for that matter). Things that are mundane to car companies (auto shows, new product releases, keep customers abreast of custom orders, etc) are unique to Tesla and they re-invent the wheel every time. This is why they have made the same errors with every model and I confidently predict they will do the same with Model 3. Companies out here truly believe that their product is the best and that it will come when it comes. Customers will wait because it's the best. It's truly a vibe out here.

Don't get me wrong, that attitude also allows them to do things that car companies would never do (which is why Tesla exists in the first place) but you have to take the good with the bad. DaveT, you're not telling Tesla anything they don't already know. They just don't care - in the same way that Apple doesn't care what its customers want (remember the episode where instead of admitting they screwed up the antenna placement Apple told its customers they were holding their phones wrong?). As long as the products are good people will suck it up like we all are. If an alternative appears in the market then these things will matter. Until then you can expect more of the same.

 

[hobbes]

Makes sense that this is a culture in Silicon Valley companies, but I don´t think the bolded part of your post must be that way. If Tesla can come up with new ways in car technology, why can´t they come up with new/better ways of communicating with their customers compared to the rest of the crowd? After all, customers that identify with Tesla instead of feeling alienated by them are more likely to convince friends of becoming customers, too. And that is something Tesla has been relying on as a marketing strategy.

One thing that is lost to so many on this board is that Tesla is NOT a car company. They are a Silicon Valley startup in every possible way. It's the way they think and the way they act. Everything you're complaining about is part and parcel to living in the bubble that is Silicon Valley. I've worked for several companies out here and none of them have ever shipped a product on time. None of them have been very good about communicating to their customers (or their employees for that matter). Things that are mundane to car companies (auto shows, new product releases, keep customers abreast of custom orders, etc) are unique to Tesla and they re-invent the wheel every time. This is why they have made the same errors with every model and I confidently predict they will do the same with Model 3. Companies out here truly believe that their product is the best and that it will come when it comes. Customers will wait because it's the best. It's truly a vibe out here.

Don't get me wrong, that attitude also allows them to do things that car companies would never do (which is why Tesla exists in the first place) but you have to take the good with the bad. DaveT, you're not telling Tesla anything they don't already know. They just don't care - in the same way that Apple doesn't care what its customers want (remember the episode where instead of admitting they screwed up the antenna placement Apple told its customers they were holding their phones wrong?). As long as the products are good people will suck it up like we all are. If an alternative appears in the market then these things will matter. Until then you can expect more of the same.

 

[AlMc]

We are not talking about George or Jerome--presumably they left for reasons not having to do with compensation (must be nice).

We are talking about trading delivery specialists for engineers. To support a owner base of 100,000 owners, one or two new DS are not going to make a difference, so say you add 20. Glassdoor says that the average salary for a DS is $53K or about $80K loaded cost or $1.6M in total payroll. The same site says average salary for an engineer is $111K or $166K loaded cost per engineer. So, as an owner of the business, where do you make your investment: 20 new DSes or 10 new software engineers--which one is more critical path for the success of the company?

This has nothing to do with being a "startup" but it has everything to do with making efficient use of your capital. I keep hearing you say you want this or you want that, but I have not heard you say what you will stop doing to do what you want--that's what you do when you own an P&L or run a company. Like it or not, Tesla has made the decision to prioritize allocation to hiring engineers and building out manufacturing (GF, S/X production line, M3 production line). Everything is going to take a back seat to that. Is that ideal? Probably not, but those things are critical to the company's success while the company will survive with 3 DS instead of 4. Nobody is happy about that but its better than the alternative--all the newly hired DSes will be telling reservation holders that the Me is delayed because the the drivetrain is not ready yet or they GF buildout is not complete or the M3 ramp is constrained by working capital.

They actually are being a "mature" and grown up company by making hard choices instead of knee jerk spending on the hope they will be able to cove costs somewhere down the road.


Its absolutely about money and resources. The company has a fixed amount of money at its disposal and a finite number of sources to they can bring to bear. They cannot just go hire a bunch more DSes without paying for them somehow.

And just for context, I have handled marketing and communications for my day job and off the top of my head I can tell you a dozen things I wish they were handling better, but I also understand the business side of things and understand why they might be making these choices.

I own/run a small service business so my frame of reference is different from someone who runs a manufacturing business. However, good customer service is not more expensive for me and I believe ANY business..in fact it is less expensive. It is much more cost effective to have good client communication 'up front'. Giving that information in the form of newsletters/videos/consistency of information given is much less time consuming (less expensive) than having to answer the same question/give out the same information in a very disjointed way 'after the fact' with follow up phone calls (like what is happening at TM now). Less information now leads to the need to take more time to explain later.

EM has expressed the need to provide an 'exceptional' (his word) experience from buying to delivery. I doubt we will find many X reservation holders that would describe their experience from ordering ..to reveal...to delivery as 'exceptional'. If the culture of client communication in the 'Silicon Valley Bubble' is as Omar describes it then who better to change that culture than the ultimate disruptor: EM.

TM was smaller at the time of GBlank. But remember he used to even use this forum to communicate with TM's customer base. It cost very little and probably saved him/TM hundreds of phone calls for updates/questions. I will assume that Dave is correct in identifying a failure at the Communication/PR level for lack od 'exceptional' experience with the time between order and delivery. The department/personnel already exists..EM needs to change the culture at that level. Use existing people or if that is the point of resistance to change, then change the people.

Dave's idea of better communication would be 'cheap'. Use the website and forums that are already in place. A weekly newsletter/blog/biweekly videos placed on the company website would greatly reduce the calls that I am sure the DS and NASales team are handling now.

 

[Julian Cox]

Et tu, Brute?

Kindly note that the Model X reservation fee was a refundable lottery ticket to a piece of the future we all desire for humanity. Something that has never existed before.

Elon does not have to do any of this, it's incredibly difficult and fiercely opposed by terrible people. The Koch brothers would very much prefer he didn't bother and your note is a gift to them.

How long should people have to wait for the creation of something that never existed before? The answer to that is that I'm afraid is either to wait for someone else to create it or do it yourself.

This exposé of entitlement mentality actually makes my skin crawl. One encouraging take away from this is that the criticism of Tesla: That it exists purely to serve up toys to satisfy the sense of entitlement of a few rich brats instead of its actual mission statement (To accelerate the advent of electric vehicles [for the masses]) is well answered by the whining of a few rich brats for whom Tesla is apparently not willing to bend.

Elon Musk (aka Robbin Hood) has made it clear that buying a Model X or a Model S is helping to fund the main event. The Model 3. What you get with a Model S or a Model X is a sense of philanthropy. Not a sense of entitlement unless you have entirely misunderstood the Tesla mission.

As for projecting woes on Model 3, that would be to miss the point. The average consumer (and shareholder) should be most encouraged by all of the above.

 

[bonnie]

Et tu, Brute?

Kindly note that the Model X reservation fee was a refundable lottery ticket to a piece of the future we all desire for humanity. Something that has never existed before.

Elon does not have to do any of this, it's incredibly difficult and fiercely opposed by terrible people. The Koch brothers would very much prefer he didn't bother and your note is a gift to them.

How long should people have to wait for the creation of something that never existed before? The answer to that is that I'm afraid is either to wait for someone else to create it or do it yourself.

This exposé of entitlement mentality actually makes my skin crawl. One encouraging take away from this is that the criticism of Tesla: That it exists purely to serve up toys to satisfy the sense of entitlement of a few rich brats instead of its actual mission statement (To accelerate the advent of electric vehicles [for the masses]) is well answered by the whining of a few rich brats for whom Tesla is apparently not willing to bend.

Elon Musk (aka Robbin Hood) has made it clear that buying a Model X or a Model S is helping to fund the main event. The Model 3. What you get with a Model S or a Model X is a sense of philanthropy. Not a sense of entitlement unless you have entirely misunderstood the Tesla mission.

As for projecting woes on Model 3, that would be to miss the point. The average consumer (and shareholder) should be most encouraged by all of the above.

While I have not been alienated like some others, I disagree. Every customer, at any point in the product evolution of a company, has a right to be treated fairly and with respect.

What is parked in your garage, Julian?

 

[Julian Cox]

DaveT

I would agree that it would have been preferable to Model X reservation holders to deal with Model X communications in exactly the same way as SpaceX does in relation to developing reusable rockets. The trouble with that is that Tesla is a public company. I would not have been in the best interests of shareholders to have the company panned continuously for two years while a hostile sensationalist media whose meal ticket is advertising funded by Tesla's competitors made hay of every minor and major challenge along the way at a time of maximum development expenditure.

Tesla owed reservation holders nothing but their money back which has been offered for the asking all along. Read the reservation contract.

The other thing to keep in mind is that the remaining auto industry has had two years and spent $billions on advertising to tempt away reservation holders to buy alternative $100K+ products. How could they have failed so badly to have any impact on such a frustrated group? The most incredible thing is that for example Porsche Cayenne advertising had no effect on whittling down the ranks of Model X reservation holders. That's a scary thought if you happen to be selling Porsche Cayennes for a living. It is not going to get any better now that Model X is in production. Only dramatically worse.

Truthfully the frustration with Model X boils down to the fact that it is ridiculously desirable and irreplaceable by anything else in the market. That is a very high quality problem to have.

 

[Spidy]

Personally I think many of the issues with the X ramp has to do with trying to ramp a custom build product to high volumes. This is not an excuse, but maybe an explanation of where they got to where they are and maybe how to do things differently.

Think about the reworked door seals for example. They are trying to ramp up a line, basically complete 50, maybe 100 cars, and figure out a part needs to be reworked. OK, stop new builds, redesign part and get going again. It is probably more important for the overall ramp to test the first batch of new parts back on the line for the next 50 to 100 cars and see if they work. If they don't work, redesign part and get going again. If they do work, now you can ramp up volume on the part and get the line going again. And then you go back and fix the cars already built.

If these weren't custom configurations no one outside the company would ever know. The company would go back and forth until the line is at reasonable speed for production. Then the batch of cars that were made and eventually fixed would go out to the dealers for sale.

Of course since every one is a custom build, with website tracking, everyone sees the fits and starts. Makes sense for a company just getting off the ground, but hopefully they will be in a better position next time.

For the Model 3 maybe they could use this model for the ramp. Build the first 500 to 1000 cars in some common configurations and use them for sales/ service centers, demos, loaners, etc. Or even offer them to the reservations to see if anyone wants to ditch their configuration and buy one of these instead of waiting.

Food for thought.

But it's still Tesla's fault for...

• Insisting on complicated Falcon Wing Doors
• Not doing enough testing of individual assemblies
• Not building enough prototypes
• Supplier selection and not keeping a closer eye on their suppliers
• Seemingly late on schedule on all of the above in relation to the launch

Oh and as far as custom build goes: How-To: Follow a new BMW from Order, to Shipping and to Delivery

The other thing to keep in mind is that the remaining auto industry has had two years and spent $billions on advertising to tempt away reservation holders to buy alternative $100K+ products. How could they have failed so badly to have any impact on such a frustrated group? The most incredible thing is that for example Porsche Cayenne advertising had no effect on whittling down the ranks of Model X reservation holders. That's a scary thought if you happen to be selling Porsche Cayennes for a living. It is not going to get any better now that Model X is in production. Only dramatically worse.

Truthfully the frustration with Model X boils down to the fact that it is ridiculously desirable and irreplaceable by anything else in the market. That is a very high quality problem to have.

You are talking about a tiny group of 30k people considering the market and timeframe. And if you look at the Model X tracker you would see that several people have actually cancelled. On the Model X forum there are posts from people considering a Volvo PHEV. In the Norwegian forum people are cancelling, because the car is too expensive.

And Tesla's monopoly for a long range EV SUV won't last forever. We already got the Audi Q6 etron and I bet Mercedes, BMW and other manufacturers already have people working similar cars. At the point you are no longer going to sell you car as a ticket to a piece of the future we all desire for humanity. Something that has never existed before.

 

[AlMc]

DaveT

I would agree that it would have been preferable to Model X reservation holders to deal with Model X communications in exactly the same way as SpaceX does in relation to developing reusable rockets. The trouble with that is that Tesla is a public company. I would not have been in the best interests of shareholders to have the company panned continuously for two years while a hostile sensationalist media whose meal ticket is advertising funded by Tesla's competitors made hay of every minor and major challenge along the way at a time of maximum development expenditure.

Tesla owed reservation holders nothing but their money back which has been offered for the asking all along. Read the reservation contract.

The other thing to keep in mind is that the remaining auto industry has had two years and spent $billions on advertising to tempt away reservation holders to buy alternative $100K+ products. How could they have failed so badly to have any impact on such a frustrated group? The most incredible thing is that for example Porsche Cayenne advertising had no effect on whittling down the ranks of Model X reservation holders. That's a scary thought if you happen to be selling Porsche Cayennes for a living. It is not going to get any better now that Model X is in production. Only dramatically worse.

Truthfully the frustration with Model X boils down to the fact that it is ridiculously desirable and irreplaceable by anything else in the market. That is a very high quality problem to have.

^^ (bolded by me) This part of any counter argument to constructive criticism, not just by you, but by many TM defenders, is a poor retort.

The people advocating for better communication are trying to make the buying experience better by giving constructive criticism. By and large they don't want a different vehicle or their money back. They are trying to suggest ways to make the overall experience better, improving the brand and accelerating the completion of the mission statement.

 

[Julian Cox]

While I have not been alienated like some others, I disagree. Every customer, at any point in the product evolution of a company, has a right to be treated fairly and with respect.

What is parked in your garage, Julian?

Bonnie. I would prefer not to argue with you, I appreciate your role as a brand ambassador tremendously. Customers have rights but Model X reservation holders have exactly the rights stated on the reservation contract. That right is strictly limited to requesting a full refund up until the point of configuring their vehicle. Period.

I think you may be underestimating how difficult it was to get that Model X (or two?) in your driveway. It is not clear to me from the perspective of operating a business that either the car or the company would exist had they done anything differently. It is very unfortunate that they had to bank on the fact that there was no alternative in the market for Model X reservation holders to choose from but it would have potentially destroyed the business to wash out every step of its laundry in public along the way no matter how much more respected the reservation holders would have felt about that. The business will most definitely overcome the frustration and Model X owners will be delighted. I am sure you agree. It may not have survived having its stock price tanked to $50 mid Model X development and that would have been a much bigger pity for the whole world than enduring the frustration of a handful of millionaires that are more accustomed to being called sir or ma'am every time they drop $5 - $40K.

Taking a more global perspective on this. I truly agree that the value of early adopters has been and still is tremendous. It is however a vital component of 'crossing the chasm' that this business is no longer dependent on appealing to early adopters. This company will have between limited positive to negative impact on getting the world off oil if it fails to treat the mass market as the most important to its success or if it actually fails as a business effectively disproving the viability of EVs. Early adopters feeling special and vital will end and must end somewhere along the road to succeeding in its mission. If no early adopter feels used at some point then they are doing something wrong. As an Apple early adopter, do you think I can get Tim Cook (or could get the late Steve Jobs) to return my calls or give a flying one about what I think about Apple? That is where Tesla ultimately needs to go however sad that may seem.

 

[The Blue Owl]

Elon does not have to do any of this, it's incredibly difficult and fiercely opposed by terrible people. The Koch brothers would very much prefer he didn't bother and your note is a gift to them.

I think this characterization of Dave's concerns is not helpful. It should be possible, indeed encouraged, to hold Tesla and its goals in high regard, and at the same time to bring up valid and constructive criticism when warranted. Friends should be able to tell you when you screw up. That's what true friends are for. Dave's record is that of a genuine Tesla advocate, and his points are valid. Reasonable people may disagree on how deep or acute the problems are, and others have had different experiences with the company. Be that as it may, to call honest and well-intentioned criticism "a gift" to the enemy is pretty low.

This exposé of entitlement mentality actually makes my skin crawl. One encouraging take away from this is that the criticism of Tesla: That it exists purely to serve up toys to satisfy the sense of entitlement of a few rich brats instead of its actual mission statement (To accelerate the advent of electric vehicles [for the masses]) is well answered by the whining of a few rich brats for whom Tesla is apparently not willing to bend.

You may be referring only to Alsop, and not to Dave, and I give you the benefit of the doubt that that's the case. In the off-chance this paragraph was meant to encompass Dave's criticism, the attribution of entitlement would be misplaced. An expectation to be treated with respect after putting down thousands of dollars sight unseen for the right to get a vehicle years later is as far from entitlement as can be.

Alsop can stuff it as far as I'm concerned. But this is not about him.

As for projecting woes on Model 3, that would be to miss the point. The average consumer (and shareholder) should be most encouraged by all of the above.

That will only be true if Tesla listens and acknowledges the problems internally. It's also what the constructive criticism presented in this thread is meant to ensure, so it's hitting the mark smack in the middle. No need for public statements from Tesla, or anything like that. Just quietly fixing the issues, or at the very least thinking about starting to maybe begin considering to fix the issues some day in the next couple of years, would be a start. And I think they are doing that.

 

[Zaxxon]

Al, Familial, Bonnie: well said.

 

[Julian Cox]

Al, Familial, Bonnie: well said.

Yes and no. Sending concerns and suggestions to Tesla is a friendly act. Trying to leverage them with a public letter is not.

Think about what DaveT is actually asking for. Dear Tesla, please climb into a time machine and make the following announcement probably somewhere around Q4 2014:

"Our falcon wing door hydraulic actuator supplier has let us down and now we have to redesign and re-validate the entire vehicle architecture around a new electric actuator".

Any shareholder/customers here that would prefer that version of events to actually getting a Model X?

 

[Zaxxon]

Julian, you can have it both ways. Communication doesn't necessarily entail publicizing exact details.

 

[juschilin]

Julian, you can have it both ways. Communication doesn't necessarily entail publicizing exact details.

Same thoughts here. I'm glad these guys are not running a publicly traded company. I think they should listen to the investors calls or call their broker for questions around investor related questions.