New CPO Warranty program - 2 years up to 100K miles

[whitex]

Actually, Tesla does control the market. They currently openly have nearly 1% all model S's ever built as CPO. That's enough to control the market in my opinion.

First, you'd need an estimate of the demand for used Tesla's. Then you'd need to know what is the number of cars available from private sellers. Tesla owning 1,500 cars world-wide doesn't necessary give them control of the market, if the demand is small (and demand is definitely a function of price, so holding the prices high just reduces demand).

False. To the shareholder, the losses on keeping that money 'locked' up are minimal compared with the losses Tesla potentially has to take on outstanding liabilities for cars still out there covered by the RVG and leases. Especially because the money isn't really locked : formerly the warehouse credit facility, and today the asset backed line allow Tesla to borrow cash against their inventory. At a very favourable rate. So the real cost of keeping 1000 of these cars as inventory on the books is likely a few million.

Actually, you said 1% of all cars ever made, that's almost 2000 cars. Then, combine the favorable interest with depreciation of these cars (1% per month easy) and storage/maintenance costs and it probably won't be that small of the cost. However, if you still say it's a negligible cost, then why is Tesla releasing all those high mileage cars at lower prices if holding them back was so cheap and provided such an important benefit of keeping residual values high for cars out there? High residual values help lease more new cars too.

 

[Buster1]

Of course it is "worse". But, these cars are most likely considerably cheaper than the ones you have been looking at too. These are mostly older, higher mileage that were most likely in the loaner fleet that are now selling for significantly lower prices.

They still have plenty of cars with the 4 year/50K mile warranty, but those are mostly newer, lower mileage cars.

Ok, I see. Thanks for 'splaining it to me.

 

[viperboy]

But new warranty is 100k total miles. Old cpo wArranty was 50k miles on top of whatever mileage you were at?

 

[whitex]

But new warranty is 100k total miles. Old cpo wArranty was 50k miles on top of whatever mileage you were at?

New "High Mileage" warranty is (100,000 - current mileage). So, if the has 85,000 miles on it (like this car), it gets 15,000 warranty, or 2 years whichever comes first. Now, this car on the other hand gets 83,000 miles or two years, so more miles than regular CPO warranty, but half the time - a good car to put on some major mileage on.

 

[Brando]

shareholder meeting a few thoughts
Shareholder Meeting | Tesla

Elon said something like "who are we kidding - CPO - what a stupid term, they are used cars." I hope he does change it and gets rid of the Certified Previously Owned term.

Concentrating on shareholder value? WTF is up with the proposal to change Tesla board? Most highly valued auto company and these people want to complain and change the board? WTF is really going on?

Glad it seems few fell for this line of BS.

 

[Zaphod]

But new warranty is 100k total miles. Old cpo wArranty was 50k miles on top of whatever mileage you were at?

That's correct. However, both warranty versions are still available, just depends on the car which it has. This new one did not replace the other one, it just applies to the higher mileage cars and the pricing in most cases is significantly cheaper.

 

[smilepak]

Tesla changes warranty, cuts used Model S prices, to lure Model 3 buyers