Model 3 standard range postponed until Early 2019

[ItsNotAboutTheMoney]

Right now, for Tesla, It is worried about not doing something that might chase the new market share away.

Back on subject "SR Postponed" I expect that the SR can not do 220 miles as designed, and so they do not want to ship something that may get them negative press.

Note that LR customers are rated 310 and seeing 305miles. ratio that down to the SR and you get 200miles instead of 220miles. If I got a SR that only did 200 miles I might complain about that.

310 * 2/3 ~= 206. Given the lower weight of the SR compared to the LR, the raw numbers behind those ratings, and given how the much heavier, less efficient Model S60 did, there's absolutely no reason to suspect that the range is the problem.

The postponement was a message to investors and lenders, not to those with reservations. Tesla is desperate for cash, and the best margin it'll get at this point is to focus on RWD LR, and then AWD LR. Not only are they _pack_ constrained, but the LR buyers are likely to be more affluent, and pony up for the additional options of EAP and FSD on top of the base car.

If the bottleneck were the _cell_ manufacturing instead, then selling some SR could make financial sense since it would allow them to sell more cars.

 

[dsvick]

Every company caters to its customers first and foremost, even before their employees. Tesla is doing the opposite: First deliveries are to employees.

Every company treats orders on a FIFO basis.

You must not get out much, there are a huge number of places where companies have different levels of customers: Have you ever... Flown?
Gambled at a casino?
Had season tickets to a sports team?
Joined a shopping club?
Gotten advance ticket notice for having a certain credit card?
Signed up for a mailing list?
Gone to an amusement park?
Gone on a cruise?
Been a frequent customer for a company?

Your point is not valid, your just upset because, as was mentioned, there are others that are "more important" than you are. Accept it, you're life will be much less stressful.

 

[206er]

I don't know about Elon, but the company certainly cares. Tesla plays plenty of quarterly games in terms of driving sales.

I'd sure love for them to play another fire sale on CPO Model Ss game soon! Deliver me that $35k car, Elon!

 

[206er]

Maybe those of us newly jaded folks can take comfort in knowing that the employees and current owners are the beta mules, lol. Even though I've cancelled and am sore about my choice to have lined up for hours to reserve a $35k sight unseen Tesla given what I know today, I can totally grab a 3 in a few years after most of the bugs have been worked out if I want one.

 

[jya*]

Every company caters to its customers first and foremost, even before their employees. Tesla is doing the opposite: First deliveries are to employees.

This is the first post I've seen to criticize the decision to deliver Model 3s to employees first. Congrats on finding a unique thing to complain about, it really breaks up the monotony.

 

[fluxemag]

This whole thing is a clown show, even compared to the Model S and X releases. Mostly because by now, over ten years later, they know they can't hit production or release schedules, yet still trot out the most unrealistically optimistic timelines possible at every chance. You know it, I known it, I plan for the delays. This is a man who thought he would have a functional rocket in 6 months, and it took 6 years. With Elon, you get staggeringly impressive results that are comically behind projections.

 

[ZeApelido]

 

[azred]

....

Every company caters to its customers first and foremost, even before their employees. Tesla is doing the opposite: First deliveries are to employees.

Every company treats orders on a FIFO basis. First-in, first-out. Barring minor production issues, this works in every industry. Tesla is favoring existing Tesla owners and higher end models, not a FIFO list. This has nothing to do with a robotic line. They can be programmed to build whatever is desired. This has everything to do with cash flow. So effectively, someone who placed an order in 2017 can get a LR before me, who stood in the line because I wanted to be first. Tesla is not customer friendly.
!

You have certainly clearly stated one viewpoint. Here’s another one: The “every company” you mention doesn’t typically beta test its products on customers (although a few companies such as Microsoft have been accused of doing so). But Tesla obviously beta tested the Model 3 with employees and now with prior customers.

My 3 has been at the SC for the past week waiting for a few parts to fix some fit and finish issues that many customers of Japanese cars wouldn’t tolerate. But employees and past customers like me are mostly willing to tolerate them, understanding that in the long term the cars will be better and all of the whiny Honda owners that are posting here to protest favoritism will have cars that have minimal or no defects at delivery.

Maybe Tesla should have waited another year to start rolling out the 3. It certainly would have prevented posts like yours.

 

[gregincal]

I agree with 206er because arguably the customers who need the $7500 the most are those being sent to the end of the line.

That's definitely arguable. How about people who are buying the more expensive vehicle are getting the larger discount and people who are buying the less expensive vehicle are getting the smaller discount. It's usually pretty standard practice to have larger rebates on more expensive products than less expensive products.

I'll also point out that there were just as many threads of people who wanted the dual motor and were outraged last July because when they lined up in the cold morning hours of March 31 they expected the dual motor to ship before the base model, and now they might not get the tax credit and they really need the dual motor for snowy conditions. They were deceived because Tesla had stated in a quarterly earnings call that they were going to ship the more expensive versions first!

However they structure the rollout somebody is going to be disappointed.

 

[dm33]

I take it you have never flown.

And see how well the airlines are regarded. If that's what Tesla aspired to as far as customer relations, thats a very low bar.
Next thing we're going to have a Tesla owner beat up and dragged out of the showroom because someone else is willing to pay more.

 

[ebmcs03]

.
Next thing we're going to have a Tesla owner beat up and dragged out of the showroom because someone else is willing to pay more.

They did! They took my $1000, beat my ego and patience down, and dragged me to 2019 because ppl are willing to pay $9000 more.

 

[dm33]

They did! They took my $1000, beat my ego and patience down, and dragged me to 2019 because ppl are willing to pay $9000 more.

You mean $14,000

 

[CheeseJam]

Any thoughts on how the AWD wording change being talked about here might indicate when the standard range (SR) Model 3 might be produced? Dual Motor no longer offers range choice

To me, this shows that they were initially planning to produce AWD with SR or long range (LR), but decided to do things one step at a time and just produce AWD with LR first. After that, they'll probably start producing SR, then after that, non-PUP.

I get why they are doing this. They're having production issues so they want to keep it simple while maximizing margins. As they get more confident with production, and demand maybe starts dwindling for the higher margin variants, they'll slowly start introducing more options.

What pisses me off is I feel like they misled their customers about their production plans. First, SR was planned to be produced in late 2017. Then, all production was delayed, so the SR got pushed back to early 2018. Then, in February 2018, SR suddenly got pushed back to late 2018, showing a clear plan to sell as many LR variants as they can before producing the SR. It feels like Tesla misled all of their customers waiting for SR, by indicating SR production was right around the corner, when in fact they were never planning on producing SR until demand for LR dropped and Model 3 production was more under control.

 

[Howdus]

Any thoughts on how the AWD wording change being talked about here might indicate when the standard range (SR) Model 3 might be produced? Dual Motor no longer offers range choice

To me, this shows that they were initially planning to produce AWD with SR or long range (LR), but decided to do things one step at a time and just produce AWD with LR first. After that, they'll probably start producing SR, then after that, non-PUP.

I get why they are doing this. They're having production issues so they want to keep it simple while maximizing margins. As they get more confident with production, and demand maybe starts dwindling for the higher margin variants, they'll slowly start introducing more options.

What pisses me off is I feel like they mislead their customers about their production plans. First, SR was planned to be produced in late 2017. Then, all production was delayed, so the SR got pushed back to early 2018. Then, in February 2018, SR suddenly got pushed back to late 2018, showing a clear plan to sell as many LR variants as they can before producing the SR. It feels like Tesla mislead all of their customers waiting for SR, by indicating SR production was right around the corner, when in fact they were never planning on producing SR until demand for LR dropped and Model 3 production was more under control.

People complain they don't get information. Then they complain when it changes. They have to adjust as they go. Anyone who didn't think their plans were overall ambitious is naive. Every article about Tesla makes this point. I'd rather have a company trying to do the right thing and not always do it rather than a company who doesn't even try...It is fair to complain and be upset by it but I don't think you can say the "misled" you.

 

[CheeseJam]

People complain they don't get information. Then they complain when it changes. They have to adjust as they go. Anyone who didn't think their plans were overall ambitious is naive. Every article about Tesla makes this point. I'd rather have a company trying to do the right thing and not always do it rather than a company who doesn't even try...It is fair to complain and be upset by it but I don't think you can say the "misled" you.

I appreciate them attempting to give us some information for delivery estimates and understand that they have to adjust these estimates.

However, I still feel like they never planned to produce SR as soon as they claimed which is why I feel misled. From a business standpoint, it makes sense to produce the higher margin cars first, especially with the full tax credit still intact. I think this was always their plan and they did not communicate that to their customers.

Edit: I further explain why I feel misled below.

 

[dm33]

Any thoughts on how the AWD wording change being talked about here might indicate when the standard range (SR) Model 3 might be produced? Dual Motor no longer offers range choice

To me, this shows that they were initially planning to produce AWD with SR or long range (LR), but decided to do things one step at a time and just produce AWD with LR first. After that, they'll probably start producing SR, then after that, non-PUP.

I get why they are doing this. They're having production issues so they want to keep it simple while maximizing margins. As they get more confident with production, and demand maybe starts dwindling for the higher margin variants, they'll slowly start introducing more options.

What pisses me off is I feel like they misled their customers about their production plans. First, SR was planned to be produced in late 2017. Then, all production was delayed, so the SR got pushed back to early 2018. Then, in February 2018, SR suddenly got pushed back to late 2018, showing a clear plan to sell as many LR variants as they can before producing the SR. It feels like Tesla misled all of their customers waiting for SR, by indicating SR production was right around the corner, when in fact they were never planning on producing SR until demand for LR dropped and Model 3 production was more under control.

Very consistent with Tesla prioritizing any model that has extra cost options above the base SR range. This continues the pattern. If/when they release a performance version that will be ahead of base SR, likewise for interior upgrades etc, etc.

Essentially they've clearly stated that as long as they can figure out how to configure and sell a model that costs more than the base SR, they will let those buyers jump in line in front of day 1 line waiters who are waiting for the fabled $35,000 Model 3.

It will be VERY interesting to see how delivery estimates get pushed back again after this quarterly earnings report where I'm sure again they'll talk about the amazing progress they're making in production, avoid mentioning a delay, saving the delay announcement until after the earnings call.

 

[CheeseJam]

Essentially they've clearly stated that as long as they can figure out how to configure and sell a model that costs more than the base SR, they will let those buyers jump in line in front of day 1 line waiters who are waiting for the fabled $35,000 Model 3.

I agree.

How many people would buy a LR Model 3 right now if they could? I think like 50,000 people is a decent estimate. It's hard to interpret exactly how many Model 3's they hoped to produce in 2017, but I think it was along the lines of 50 in July, 100 in August, 1500 in September, 20,000 in December (and then whatever fits their S curve for October and November, maybe like 5,000 and 10,000?). So, let's say they initially projected to produce ~40,000 in 2017 when they announced production plans in July.

Then the delivery estimator came out, and I believe the earliest range of delivery estimate for the SR was Oct-Dec. Roughly using the numbers above, I interpreted this as Tesla saying, "We have the demand to only sell LR in 2017 if we want to, but are going to offer SR to those ahead of others in line."

This doesn't seem like they initially "clearly stated that as long as they can figure out how to configure and sell a model that costs more than the base SR, they will let those buyers jump in line in front of day 1 line waiters who are waiting for the fabled $35,000 Model 3." However, with their recent delay of the SR to late 2018 (and maybe longer), I agree they have essentially said that. This is why I feel misled.

It's a bummer really.

 

[DriveMe]

I get why they are doing this. They're having production issues so they want to keep it simple while maximizing margins.

Well, you said it yourself.
What you might be missing is that they have to do it this way. With production numbers being so low, they have to maximize the margins. I think they have no choice now. Whether that will piss you off or not.

 

[CheeseJam]

Well, you said it yourself.
What you might be missing is that they have to do it this way. I think they have no choice now. Whether that will piss you off or not.

Oh, I agree this is the only way to do it now! I just think they had always planned to do it this way (in terms of when they are producing each option), and that they were misleading in their previous delivery estimates when they indicated SR would be produced before LR demand was fully met.

 

[Surfer]

People complain they don't get information. Then they complain when it changes. They have to adjust as they go. Anyone who didn't think their plans were overall ambitious is naive. Every article about Tesla makes this point. I'd rather have a company trying to do the right thing and not always do it rather than a company who doesn't even try...It is fair to complain and be upset by it but I don't think you can say the "misled" you.

I absolutely disagree, consumers deserve protection from lies (being misled) instead of being called naive by drinkers of Tesla flavored kool aid.

Elon had no way to deliver a $35k car, he still has no way. Drink up everyone, your gonna need a lot of kool aid when your cars end up not being autonomous or never ever shipping!