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OK, so...did everyone get their cars by the end of 2019?
- Thread starter BoneHLP
- Start date
ucmndd
Well-Known Member
Generally yes, it certainly seems that way. They clearly pulled some demand forward in the US last quarter, so I’d expect to see a softening of Q1 deliveries in the US as things stabilize, but with international demand remaining quite strong I can’t imagine any reason why they’d need to lower prices in the short term.
Sadly I think we’re still far away from the end of Tesla’s mad quarter-end dashes to maximize their numbers for the Wall Street game.
eye.surgeon
Active Member
Sadly it would not surprise me one bit despite the chaos at superchargers as it is. Anything for that stock price.
jebinc
Well-Known Member
If I may ask, Why did you put 50% down, sight unseen? Sorry to hear your delivery was delayed.
jebinc
Well-Known Member
They will just offer you another one, when another one is built. Either yours wasn't built yet, or it went to someone else - tough to say. With Tesla, you won't see dealership like behavior, behavior like compensating you for your troubles or disappointment. It's just how they roll as there is a line at the door for these cars.
Uncle Paul
Well-Known Member
Legacy dealerships also will not offer significant compensation if your custom ordered vehicle arrives a few days late.
For the most part this EOY drama was caused by the US Government...Not Tesla.
It is the elimination of the residual Federal Tax Credit that is causing most of the consernation.
If not for tax reasons, most would not care if their car was delivered the last week of 2019 or the first week of 2020.
For the most part this EOY drama was caused by the US Government...Not Tesla.
It is the elimination of the residual Federal Tax Credit that is causing most of the consernation.
If not for tax reasons, most would not care if their car was delivered the last week of 2019 or the first week of 2020.
Akikiki
A'-Lo-HA ! y'all
Well I reallllly doubt that Tesla will close the factory in Fremont because the tax credit expired.
At face value it may seem so but consider that a drop from $3750 to $1875 in credits did not decrease demand (in fact it increased) so why would a decrease from $1875 to zero impact demand significantly? Consider that people are adding options (paint color, interior color, wheels). Even given the option of the short lived SR-, most people optioned up. The only thing that it would impact would be sales of options, which is what traditional car buyers eliminate to make a car fit within their budget. It likely will cause a lull in Model 3 purchases as now there is no incentive to purchase immediately and buyers can delay their purchases, but consider that it won’t matter to Tesla since the Model Y is going on sale soon and there is a pent up demand for that. That model uses the same production capacity as the Model 3 so it won’t matter if demand on the Model 3 goes down.
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PJETS
Member
Did not get....ordered mid Nov....SR Plus, white, black interior, 18 inch.....in fact I have not heard anything from Tesla in 3 days.
Did they say you would receive the tax credit if you ordered when you did? That’s what they told me. Said they were guaranteeing it.
jebinc
Well-Known Member
Based on reading several forums posts, it seems like the lower margin trims were the ones not delivered. LR AWD and M3P were easily delivered. So, let's test that hypothesis.. Anyone have a delivery date for 12/31/19 canceled, where you had a LR AWD or P M3 ordered?
What Tesla is dealing with is way more complex than a simple supply/demand or pricing problems. Frankly, I wish Tesla management would communicate this to their employees, or even their customers, and everyone would be way more forgiving and be less in the dark.
Every quarter, Tesla has to deal with a very complex logistic problem, in a market that's extremely low margins, with an executive team that's way too optimistic on production goals -- each of the above compounds which creates this massive end of year chaos.
Logistics:
Keep in mind currently Tesla is only producing cars out of the US factories, but they have a global demand. In an ideal world, Tesla should be like Amazon and just ship the order out in the order they come in. However, Tesla cannot do that because shipping cars internationally is very expensive.
In order to keep their delivery cost down (because they are in an extremely competitive low margin market, they need to save every $), they have to bunch deliveries geographically. So this is why they usually allocate the first month of the quarter for all European deliveries, 2nd month for Asia, and third month for the US.
Low margins:
Tesla Model 3, and the soon coming Model Y, is meant for Tesla to enter the mass market -- now they are competing with BMW, Lexus/Toyota, Acura/Honda, Audi, etc, and enter a segment where margins are extremely low, and customers are extremely price sensitive and value conscious -- kind of self evident on all the complaints you see in this forum around why you have to pay for destination fees and premium connectivity.
Management team optimism:
Now, you coupled all of the above with a management team that's not seasoned Toyota executives, they are essentially still learning on the job. The most obvious mistake they made here is they factored in historical cancellation rates into their production projections.
With the tax credit ending EOY, there's an extremely low rate of cancellation. Let's be honest here, anyone can put a $100 order down, may be they should've raise that price to $1,000 so there are less people who would put an order down.
So now, you have one month (December) to deliver all the demands that accumulated from October and November, for the entire North America. With historically low cancellation rate, and a management team that thinks if they just work 24/7 around the clock (and they did), they can probably make sure everyone gets their car. If everyone goes perfectly, they probably could've, but we all know nothing ever goes as planned.
Tesla is not intentionally trying to screw up your order -- please at least take a moment and think about the challenges they are dealing with. Frankly, I'd hate to be Elon because this is a very very tough business problem to solve.
Every quarter, Tesla has to deal with a very complex logistic problem, in a market that's extremely low margins, with an executive team that's way too optimistic on production goals -- each of the above compounds which creates this massive end of year chaos.
Logistics:
Keep in mind currently Tesla is only producing cars out of the US factories, but they have a global demand. In an ideal world, Tesla should be like Amazon and just ship the order out in the order they come in. However, Tesla cannot do that because shipping cars internationally is very expensive.
In order to keep their delivery cost down (because they are in an extremely competitive low margin market, they need to save every $), they have to bunch deliveries geographically. So this is why they usually allocate the first month of the quarter for all European deliveries, 2nd month for Asia, and third month for the US.
Low margins:
Tesla Model 3, and the soon coming Model Y, is meant for Tesla to enter the mass market -- now they are competing with BMW, Lexus/Toyota, Acura/Honda, Audi, etc, and enter a segment where margins are extremely low, and customers are extremely price sensitive and value conscious -- kind of self evident on all the complaints you see in this forum around why you have to pay for destination fees and premium connectivity.
Management team optimism:
Now, you coupled all of the above with a management team that's not seasoned Toyota executives, they are essentially still learning on the job. The most obvious mistake they made here is they factored in historical cancellation rates into their production projections.
With the tax credit ending EOY, there's an extremely low rate of cancellation. Let's be honest here, anyone can put a $100 order down, may be they should've raise that price to $1,000 so there are less people who would put an order down.
So now, you have one month (December) to deliver all the demands that accumulated from October and November, for the entire North America. With historically low cancellation rate, and a management team that thinks if they just work 24/7 around the clock (and they did), they can probably make sure everyone gets their car. If everyone goes perfectly, they probably could've, but we all know nothing ever goes as planned.
Tesla is not intentionally trying to screw up your order -- please at least take a moment and think about the challenges they are dealing with. Frankly, I'd hate to be Elon because this is a very very tough business problem to solve.
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Thanks, I was hoping it would help my chances, but maybe it back-fired, and actually hurt my chances.
I saw somebody else in a different thread here who wired a big down-payment and also did not get delivery.
Agreed, seems that the missed deliveries were SR+ (and of course SR) folks.
But like I said, some SR+ cars did get delivered, even some who ordered 10 days after me.
The LR inventory was plentiful last night when the Sales Rep offered to let me to buy one of those instead around 7:30 PM PST,
so it is unlikely that somebody did not get the LR that they wanted yesterday.
dandrewk
Active Member
What chaos are you referring to? AFAIK, there have been only two reports of long waits at a few supercharger locations. Both occurred in California in the past six weeks during the busiest travel weekends of the year, as a direct result of a major north/south artery being closed.
Tesla is doing everything It can to stay ahead of the increased demand for superchargers. Look at the supercharger map for all the locations that are planned and are being built. Tesla has many legitimate issues that are cause for concern, but superchargers and charging locations is not one of them.
jebinc
Well-Known Member
I had thought that might have been the strategy. I don't think it hurt you; more like there was some other factor driving how Tesa prioritized deliveries. Did you get a new date?
eye.surgeon
Active Member
You must not live in California. Super chargers are constantly jammed here.
dandrewk
Active Member
You must not live in California. Super chargers are not constantly jammed here.
Are you referring to urban or destination chargers? That's a bit different from long distance superchargers.
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