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How will Tesla make deliveries?

Discussion in 'Model 3' started by Nightdevil, Feb 1, 2016.

  1. Nightdevil

    Nightdevil Member

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    I was just thinking, with tesla planning to take on do many orders and having no "dealerships"... can they keep up with demand? Sure they can have flat bed truck deliveries but that only this so far. Thoughts?
     
  2. Red Sage

    Red Sage The Cybernetic Samurai

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    Cars purchased through 'independent franchised dealerships' were all at some point riding on a flatbed truck, a car carrier, a train car, or in a shipping container, and in some cases all of the above. Absolutely nothing is special or different about the Tesla Motors distribution method. It isn't as if Tesla Motors sends every vehicle direct from the factory via LTL carrier. Everything that Tesla Motors does for Sales and Delivery is infinitely scalable. NADA knows this, that's why they want to force them to use the 'dealership system' instead.
     
  3. CHG-ON

    CHG-ON Still in love after all these miles

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    Red Sage: I completely disagree. There is no way that Tesla can continue this very expensive delivery scheme over the long haul. I was lucky in that I bought back when they could deliver right to my house. I simply cannot see that continuing. It is way too expensive. Even considering the price of the car. They must find a more cost effective way of delivering their cars as they move more into the mainstream. They are not consolidating and sending bulk cars to dealerships at all. They are doing it essentially one by one. Way too expensive.

    And the signs are there: no more Ranger service for free is just the first step. No more deliveries direct to the house is now in place.

    Can't blame them. They need to make money at some point.
     
  4. DavidM

    DavidM P2624, Delivered

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    I've been thinking about this for a long time. How Tesla will prep and deliver so many cars. If strong deposits are received for the Model 3, I expect Tesla will partner with a single national dealer to exclusively prep and sell the Model 3. This will limit future capital expenses for build out of an ever increasing number of showrooms and service centers. If Tesla doesn't go this route, then I expect them to build a couple dozen massive regional "prep and deliver" facilities, each capable of storing and delivering hundreds of cars per week.
     
  5. Nightdevil

    Nightdevil Member

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    To be honest I could actually see the value of the Delievery fee if it is sent to a regional hub or something. Maybe they will use the pre-orders to determine where these hubs will be placed? Based on demand
     
  6. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    Regular dealerships will deliver to homes, so I don't see why Tesla wouldn't be able to continue it. But, the standard method is for you to pick up the car from a service center.

    Tesla Service Centers act like dealerships, but with a faster turnover of inventory.

    Collect from Service Center or pay a fee for home delivery. There's no magic to it.
     
  7. DavidM

    DavidM P2624, Delivered

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    The service centers would have to be 5X to 10X their current size to receive and prep the volume of cars that will be coming in 2018 and beyond. The current service centers are already busting at the seams and the Model X deliveries are just beginning to scale up. Either that, or there would need to be regional "giga-delivery centers", built for the sole purpose of storage, prep, and delivery of hundreds of cars per week. These giga-delivery centers could have 4 or 5 delivery timeslots per day, 7 days per week. Each session would have one to two dozen deliveries. Customers would pick an available day and timeslot. They would arrive to a waiting area. Be guided to a presentation "theater" (capable of seating up to 50 customers). A delivery specialist would narrate a video presentation explaining the features and operation of the Model 3. After some question and answer, customers would be led out to the parking lot to take delivery. After a 30 minute break, the next "delivery timeslot" begins. Any paperwork or financing could be completed prior to the delivery event.
     
  8. jaguar36

    jaguar36 Member

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    Tesla will deliver the model 3 the same way they do the Model S, and the same way most car makers delvier cars. You'll go pick em up at the service center. They don't need to do anything fancy, even if they hit their crazy 500k target.

    Look at the math, there are currently 60 service centers, by 2020 when they've said they want to sell 500k cars they will easily have been able to triple that to 180 centers. Assume the 500k cars are split roughly 50-50 in the US vs rest of world. That means 250k delivers a year in the US, roughly 250 delivery days per year, so 1000 per day. Thats less than 6 deliveries per service center per day, easily doable. Even if they don't add a single service center thats only 16 cars a day, which would be managable as well.

    Course thats all assuming they get anywhere near the 500k mark, which is highly unlikely.
     
  9. Model 3

    Model 3 Active Member

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    What is the real problem been debated here? We have never had any "home deliveries" here in Norway, and the Ranger service is long gone. So all deliveries is, and has always been, at a local Service Centre, and I don't see any reason that this will change.

    Yes, they will have to build out the Service Centrers to manage to deliver more cars, but however they may deliver the cars, they still need to build out the Service Centrers to service a bigger fleet of cars. I just don't see the problem...
     
  10. AB4EJ

    AB4EJ Member

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    "Regular dealerships will deliver to homes." Really? Who does this? I've bought a ton of new cars of various makes, and I always had to go to dealer to pick them up.
     
  11. Johan

    Johan Took a TSLA bear test. Came back negative.

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    Home delivery is not the norm anymore.

    @Nightdevil: How did you get such a big avatar?
     
  12. DavidM

    DavidM P2624, Delivered

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    I believe Tesla simply cannot afford to triple the current service centers over the next four years. They will not even be able to triple the supercharger stations over the same period. Nearly every penny of capital will go towards the massive assembly lines for the Model 3, and the continual investment in the gigafactory. To think Tesla will be doing that, and also have the ability to "triple" the service centers might be a little naiive.
     
  13. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    When I was looking to buy a Volt I was originally dealing with a dealership in CT. They would deliver up to 1,000 (I think) miles away. It doesn't cost them that much.

    You wouldn't expect it to be free, or to have a long walkthrough at lower prices, but the point is that this stuff isn't some amazingly magical thing. If you multiply volume, you multiply service centers and staff, and if you want to lower the cost you have to work to reduce problems and streamline the process as much as possible. As volume increases this process should actually become easier as unit overheads decrease.
     
  14. Model 3

    Model 3 Active Member

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    Now I will not say anything about whether they have to double, triple or quadruple their capacity of service centres. But if they can not increase the capacity to take away the need for service/warranty repairs then they can not be handing out these cars - even if the deliveries would be "free" and outside of their normal line. So they need to do a massive up scale here anyway, or lower their expansion plans.
     
  15. gregincal

    gregincal Active Member

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    You seem to contradict yourself. Yes, individual deliveries to homes was not scaleable or cost effective, so they have already switched to bulk deliveries to dealerships (oh excuse me, service centers). Where is the problem? I'm not sure why you say they are doing it one by one, since cars arrive at the service centers a truckload at a time.
     
  16. S3XY

    S3XY Member

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    The closest Service Center to me is a 3 hour drive. That's 6 hours of driving, 3 of which (the return trip) would be in 2 cars. Since the one-way trip is about 280 miles it would require a charging along the way. That sounds pretty daunting for a newbie.
     
  17. Red Sage

    Red Sage The Cybernetic Samurai

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    I was under the impression that deliveries to someone's driveway had ended sometime in mid 2013, except for those who are either: 1) in extremely remote areas, hundreds of miles from a Service Center; or 2) in States that do not allow Tesla Motors to 'sell' cars, like Texas. Neither of those is what I consider to be Tesla Motors primary sales and distribution method. They are just means to get the Product to dedicated Customers.

    I believe that Tesla Motors prefers to continue selling direct through their website, and processing the final Delivery at their Service Center or Tesla Store. Some of their largest locations combine both on the same site. Those are often locations that were previously Lexus or Acura dealerships. So, yes, there is plenty of room. I'm just saying that at places of that sort, car carriers make the final drop-off at the site, no matter the manufacturer. There is no need, even with the Model ≡, to have 'Acres and Acres of Cars!' sitting on a lot, waiting for someone to come buy them. Better to have regional Tesla Stores/Service Centers that process Delivery to Customers.

    The problem is that too many States won't allow that to happen due to their Franchise laws governing the sale of new cars. I hope that there is legal action at the Federal level during Q1 2016 to remove those roadblocks well ahead of the release of Model ≡. That way, Tesla Motors can prove once and for all that they do not need 'independent franchised dealerships' to distribute their cars at all. Tesla needs to know where they stand, so they can move forward with their plans appropriately.
     
  18. jaguar36

    jaguar36 Member

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    I wouldn't be buying a car that requires that long of a trip to a service center. Best case you're going there once a year for the annual service, worst case its much more frequent for warranty issues. Delivery would be the least of your worries.

    Tesla will likely open a service center nearby, or likely forgo most of the sales from your area.
     
  19. Nightdevil

    Nightdevil Member

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    @johan... I don't know I'm using Tapatalk so I can't tell you why or how... Maybe through the app? Is it annoying? It looks normal in the app. Don't have a pc to check now.
     
  20. DavidM

    DavidM P2624, Delivered

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    Well Tesla will obviously increase the capability of the Service centers to be able to service the cars they sell. But increasing them to handle "that", as well as to handle prepping and delivering every single new vehicle is an order of magnitude larger. The prep and delivery can be more efficiently handled by regional "giga-delivery" centers, that operate with the efficiency of a Disney line queue.
     

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