Miami Service Center

[Larry Chanin]

This is such a significant building that I am wondering whether they will fold the Dadeland mall store once Coral Gables is really up and running. They did fold a store in Miami Beach, so it has happened before. At the beginning it seemed that one of their main marketing objectives was to bring visibility to the brand through high traffic locations like Malls. Considering the huge visibility of Model 3 PR and the sheer number of Teslas roaming around the MIA area, I am wondering whether it is now a necessary expense. Other service locations such as Dania and West Palm also have sales people and showroom space. Having their own brick and mortar is a logical next step in locations where they have had decent market penetration.

Hi Jim,

Whereas Tesla has the ability to do some sales at the Dania Beach and West Palm Beach Service Centers, once you visit them and experience the neighborhoods in which they are located, most would immediately realize how unfavorably they compare in attracting foot-traffic when considering bona fide Tesla Stores located in high-traffic malls.

It is true that Tesla did relocate its Lincoln Road Mall Store to Dadeland Mall. However, the Lincoln Road store was located in a pedestrian mall on an island, South Beach Miami, with poor parking. The Lincoln Road Mall struggles to handle 6 million visitors per year. The Dadeland Mall handles more than18 million visitors per year.

Tesla probably moved the store from Lincoln Road to Dadeland to benefit from the increased foot traffic and lower lease rates. It is unlikely that the Coral Gables Service Center location could ever rival the foot-traffic at the Tesla Store at Dadeland Mall.

Larry

 

[GoCanes]

Let's not forget

Hi Jim,

Whereas Tesla has the ability to do some sales at the Dania Beach and West Palm Beach Service Centers, once you visit them and experience the neighborhoods in which they are located, most would immediately realize how unfavorably they compare in attracting foot-traffic when considering bona fide Tesla Stores located in high-traffic malls.

It is true that Tesla did relocate its Lincoln Road Mall Store to Dadeland Mall. However, the Lincoln Road store was located in a pedestrian mall on an island, South Beach Miami, with poor parking. The Lincoln Road Mall struggles to handle 6 million visitors per year. The Dadeland Mall handles more than18 million visitors per year.

Tesla probably moved the store from Lincoln Road to Dadeland to benefit from the increased foot traffic and lower lease rates. It is unlikely that the Coral Gables Service Center location could ever rival the foot-traffic at the Tesla Store at Dadeland Mall.

Larry

let's not forget the Design District store currently under construction. Between Dadeland, Aventura mall & the Design District, they will have plenty of exposure in high traffic areas in Miami-Dade. The Coral Gables SC has a sizable lobby (larger than Dania's) and I think there will be a big sales effort out of that SC - probably drawing customer traffic from the Collection across the street.

 

[Larry Chanin]

Let's not forget.
let's not forget the Design District store currently under construction. Between Dadeland, Aventura mall & the Design District, they will have plenty of exposure in high traffic areas in Miami-Dade. The Coral Gables SC has a sizable lobby (larger than Dania's) and I think there will be a big sales effort out of that SC - probably drawing customer traffic from the Collection across the street.

Good point.

Clearly the fact that Tesla continues to build new stores, such as the Design District Store, in these high traffic, prestige malls supports the conclusion that Tesla still believes that these type malls remain the best means of generating high foot-traffic to support sales.

Larry

 

[DJ Frustration]

Still no opening date. After my latest discussion with Dania, they now think it may be a few months.

 

[GoCanes]

Still no opening date. After my latest discussion with Dania, they now think it may be a few months.

But then, while at the Dania SC today, I was told next month would be the opening (pending inspections, etc). Much of the staff at Dania were hired for the Gables SC and have been anxiously waiting for the delayed opening.

 

[jbcarioca]

We do not know when the Sales facility will open but we do know what their hours will be!

Tesla Solar promotional fitting are already in place...

The visibility from the West approach is excellent. Photo 38th Court side. The only easy entrance is from Bird Road traveling West, only a couple blocks from US-1

The service entrance is from 38th Court, in the alley behind the building

 

[jbcarioca]

Good point.

Clearly the fact that Tesla continues to build new stores, such as the Design District Store, in these high traffic, prestige malls supports the conclusion that Tesla still believes that these type malls remain the best means of generating high foot-traffic to support sales.

Larry

The presence of The Collection as well as two high end used car operations will make the sales location pretty well-placed, I agree. Many of the new stores I saw in my trip this month from Sequim, BC to San Francisco to Atlanta have been located in/near high end malls or luxury car dealers. It is interesting to see the changes in Tesla strategy. One very recent example is the relation of the Denver, SC from a low end area (akin to Dania and WPB) to the midst of a high end dealer area in an upscale suburb. I suspect we'll see the relocation of both Dania and WPB fairly soon.

 

[Larry Chanin]

The presence of The Collection as well as two high end used car operations will make the sales location pretty well-placed, I agree. Many of the new stores I saw in my trip this month from Sequim, BC to San Francisco to Atlanta have been located in/near high end malls or luxury car dealers. It is interesting to see the changes in Tesla strategy. One very recent example is the relation of the Denver, SC from a low end area (akin to Dania and WPB) to the midst of a high end dealer area in an upscale suburb. I suspect we'll see the relocation of both Dania and WPB fairly soon.

Regarding Tesla's future Service Center strategy, it will be interesting to see what Tesla does to address an increase in production by an order of magnitude. What will they do when production of the Model 3 ramps up to 10,000 cars a week? In all likelihood no one approach will work. For starters, if Tesla intends to handle this without other third parties, it will require enormous parking lots to handle the volume not to mention increases in staff. They will have to either build large elevated parking lots adjacent to service centers or find suitable sprawling industrial locations, where satellite lots are not too far from a service center. Such suitable industrial neighborhoods might not differ much from Dania Beach and West Palm Beach in terms of low end atmosphere.

An alternative of course is to augment Tesla resources by hiring third parties, such as CarMax or AutoNation, etc., to handle deliveries.

Larry

 

[DJ Frustration]

I’m now hearing that there are even more delays with opening the service center from the landlord in addition to delays from Coral Gables. Tesla is even looking at a temporary service center location nearby in the event that the delays are prolonged. I’m also hearing that Dania Beach may knock down another wall and expand into the next space over, which would be the third or fourth expansion. They’d likely remove all sales activities and just make it service and deliveries only.

Still a subpar presence in Miami Dade county, but Tesla has been trying. In my opinion it they should have built in a less flashy, more business friendly community than in Coral Gables. The Falls warehouse district works, areas in South Miami would have worked too.

 

[jbcarioca]

I’m now hearing that there are even more delays with opening the service center from the landlord in addition to delays from Coral Gables...

Still a subpar presence in Miami Dade county, but Tesla has been trying. In my opinion it they should have built in a less flashy, more business friendly community than in Coral Gables. The Falls warehouse district works, areas in South Miami would have worked too.

I agree with your post except for one thing. That location is not in Coral Gables at all, but in Miami, so there should be no Coral Gables delays. They seem to have done a really good job “shoehorning” a facility into that crowded location. However, the only real attraction of the immediate area seems to be the proximity to The Collection and the other auto dealers.

Somewhere around Pinecrest- South Miami would probably have been a better, easier and cheaper idea. US-1 in that area is littered with auto dealerships that serve the same areas as to the eastern limits of Bird Road but with larger, cheaper and easier space.

I do hope this opens soon, even though there will be another urgently needed very soon. If they’re planning well they are working on an additional location right now.

 

[jbcarioca]

Has anybody been by here during the last few days? I'm curious, especially top know whether the Superchargers are definitely not happening, or what. It seems pretty quiet.

 

[GoCanes]

I drove by on Wednesday - no workers and it looks ready for final inspection. The rear parking lot appears finished with landscaping, but no sign of the chargers other than those conduits coming out of the concrete blocks. The lobby looks complete, lacking only furniture & signage.

 

[GoCanes]

Follow-up - drove by today (Nov 5) and signage/furniture has been installed in the lobby, but it’s still covered in plastic. No sign of the chargers, but there was a security guard on premises.

 

[jbcarioca]

I went by the location yesterday and was allowed to walk around the entire ground floor facility, but they did not want photos. There are four car elevators, two installed and operational, two being tested as I was there. The SC and showroom computers, printers, coffee machines etc are all there, mostly in boxes but being installed right now. The second floor has the primary storage and service facility mostly installed. The ground floor has some service facilities, as well as the sales operation from the looks of it. I could not see the second floor but workers said most o the service center is located there. I cannot confirm that for certain because this employee was not very aware of what he was doing.

It looks as though they could be in operation within a few weeks. One oddity was that a diesel pump was being installed while I was there, so they seem to expect service support vehicles to be ICE for some time to come.

 

[GoCanes]

I drove by last night (12/4) - the showroom looks ready for business and needs only an X, S (or hopefully a 3?) and a couple of people! Desks and displays are all set up!

 

[jbcarioca]

That is serious progress in the last few days. There were about 15 people working hard on Saturday when I went by. It looks like they’re finished with all four car elevators and the boxes in the ground floor service area are gone,

Could they open before year end!?
Probably, since my car is at Dania for routine service now, i’d Plannned to wait so it makes perfect sense that Miami will open tomorrow when I get my car back and give up my Impala loaner.

 

[jbcarioca]

There are new boxes in ground floor, external sign is up, including non-existent Supercharger reference and there are
new S and X in the lot.

 

[Larry Chanin]

View attachment 264948 There are new boxes in ground floor, external sign is up, including non-existent Supercharger reference and there are new S and X in the lot.

Hi JC,

I've contacted Tesla on the issue of the signage.

Here is their response.

"Hey Larry,

Thanks for following up.

I’ve just confirmed with my Retail and Supercharger teams that if any Superchargers are installed at this location, they will not be customer facing, so the sign is incorrect, and will be changed/replaced. We look like we’re still planning on opening a Coral Gables Supercharger, just not in that specific location.

Thanks for bringing it to our attention."

Larry

 

[GoCanes]

This morning (12/7) I spotted this delivery truck stuck in rush hour traffic on south-bound US 1 headed to the Coral Gables location. Looks like deliveries will start soon in the Gables!

 

[TooManyAirMiles]

Looks like December 11 is the opening day!