Referral supercharging to end????

[nowtleft]

.....If this is correct surely my car and others with free supercharging will increase in value and cars without will lose value EVEN faster than a Tesla already does.
I bought my 30000 mile P85 model S for £58k 6 months ago (realistic price) but that was some £40k less than when it was new and to trade now it is only worth about £40k (still retails at £52kish!!)

This represents a HUGE loss in value that probably outweighs any savings I have or will make over the lifetime of my car - the ONLY way it retains any value is by me NOT selling it which is ok as I love the car but it means that buying a TESLA will never ever represent value for money especially as free supercharging is supposedly ending on January 31st 2018.

I suspect the Tesla sales model will become a poor one when there is real competition for EVS in a year or two - it is surely time Tesla priced its cars properly and stopped ripping customers off - a Model S75 is not worth any more than say £50,000 new now I reckon so they are £30k over priced - personally I see no reason now to buy a new Tesla as the "old" ones have free super charging and are like new anyway.

The PCP model across the Industry beggars belief when you look at the HUGE losses for anyone using it.

Interesting times ahead but Tesla need to be VERY careful about pricing etc.

 

[jaguar36]

The actual value of free supercharging for most people is very minimal. It really doesn't add a lot to the price of the car, maybe a grand or two at most. If its worth more than that to you, you are likely abusing the superchargers.

You just seem like you're bitter about the trade in value being so low. Trade in values are always low.

 

[HankLloydRight]

Way way back, you could add the Supercharging option to S60s and S85s for $2000. It was 'included' in P85s and P85+ (but the price reflected the additional $2000). But that was when the program just started and they needed to raise funds to pay for the SC network build out. The cost to build out SC stations has fallen, and it's now included on (almost) every car, so at most it's worth at most maybe $1000, which is likely still built into the price of each car.

So in the long run, like @jaguar36 said, it's not really going to affect the resale value of these cars. It's like a used Tesla having or not having a minor option like hi-fi audio, sunroof, or rear facing seats.

edit: Once the 'free supercharging' referral program ends, I suspect Tesla will go back to offering it as an accessory add-on for $1000 to $2000 for people that really, really want that.

 

[jlewisthe3rd]

Don't worry it is only temporary to help add value to it when they bring it back later on as a demand lever. Right now with the exception of the Model 3 most cars have free supercharging so the pay-per-use is somewhat non-existent. They are using this to get everyone familiar with paying to supercharge which will increase the demand for free supercharging!

 

[BerTX]

Since they started the referral Supercharging, the free unlimited Supercharging was eliminated for second owners -- it is not transferable. Your theory that it will affect resale values when it goes away should already have occurred. I don't know if it has or not, but just saying that there won't be a sudden effect next month (or whenever it actually stops), as it would have happened in early 2017 when the referral Supercharging started.

 

[jlewisthe3rd]

Since they started the referral Supercharging, the free unlimited Supercharging was eliminated for second owners -- it is not transferable. Your theory that it will affect resale values when it goes away should already have occurred. I don't know if it has or not, but just saying that there won't be a sudden effect next month (or whenever it actually stops), as it would have happened in early 2017 when the referral Supercharging started.

I agree with the impact on value, for now. However, I believe that there are 2 types of "unlimited free supercharging":

Unlmtd Free SC Vehicle - This was what anyone who bought back when they paid the $2k for Supercharging. That is applied to the life of THAT vehicle and is resold as such on Tesla CPO site, so transferrable to all owners of THAT vehicle.

Unlmtd Free SC Referral - This was supposed to be applied to the account of anyone using it, which would give them Unlimited Free Supercharging for Life to any car that they buy (Model 3 excluded). So if you trade up or sell the car does not have Free Charging and it cannot be transferred but if you buy a 2018 MS/MX in March with your same account it would have Unlimited Free Supercharging as well.

Not sure if #2 is applicable to all rounds of the referral program, meaning the round ending in Jan 31 2018, but was supposed to be the case with others prior.

 

[DOCAL]

Given that Tesla wants to make a clear market gap between the Model 3, and the Model S (and X), I think they should keep long distance supercharging free for S & X. Mentally I think that's a clear differentiator, but in terms of actual money it shouldn't cost Tesla much.

 

[carbonx]

From what I hear, the supercharging referral will be reduced to "1 year of free supercharging" or "1,000 in supercharging credits). It makes sense - the company can't continue to bleed money at this rate on superchargers. They need to at least break even on them at the very least.

 

[HankLloydRight]

From what I hear, the supercharging referral will be reduced to "1 year of free supercharging" or "1,000 in supercharging credits).

That would be a really bad move. They aren't really losing that much money on free supercharging in the grand scheme of things, and the free unlimited supercharging is a great psychological demand lever they have, and they know it.

If they reduce it and complicate it with "1 year" or some arbitrary limit, the power of the words "free" and "unlimited" is gone, and people just won't care as much if they do or don't get a referral code for one year or some limit in kWh or even dollars they don't understand yet.

This is Marketing 101.

 

[Boourns]

That would be a really bad move. They aren't really losing that much money on free supercharging in the grand scheme of things, and the free unlimited supercharging is a great psychological demand lever they have, and they know it.

If they reduce it and complicate it with "1 year" or some arbitrary limit, the power of the words "free" and "unlimited" is gone, and people just won't care as much if they do or don't get a referral code for one year or some limit in kWh or even dollars they don't understand yet.

This is Marketing 101.

Agree. I suspect the vast majority of the cost of the supercharger network is actually building them, rather than giving away electricity.

 

[brkaus]

edit: Once the 'free supercharging' referral program ends, I suspect Tesla will go back to offering it as an accessory add-on for $1000 to $2000 for people that really, really want that.

Doubt it. The only ones that buy will be the ones that do the math and think they will "win" on the deal.

I think they will keep some annual credits with the S/X, but not unlimited.

 

[HankLloydRight]

Doubt it. The only ones that buy will be the ones that do the math and think they will "win" on the deal.

I don't agree. I definitely wouldn't "win" on the deal, as I only use SC for long distance travel (as it should be). But I do like knowing that I don't ever have to worry about it every time I supercharge. Should I stay another 20 minutes to top up to 90% or stop at 80%, because I know I'll be charged the difference? Or I might stop at two SCs en-route instead of minimizing the SC along the way to reduce the actual cost? It's not just about the money, there's a huge convenience factor for me, and I suspect other people as well.

If people "did the math" Las Vegas would never exist.

 

[brkaus]

I don't agree. I definitely wouldn't "win" on the deal, as I only use SC for long distance travel (as it should be). But I do like knowing that I don't ever have to worry about it every time I supercharge. Should I stay another 20 minutes to top up to 90% or stop at 80%, because I know I'll be charged the difference? Or I might stop at two SCs en-route instead of minimizing the SC along the way to reduce the actual cost? It's not just about the money, there's a huge convenience factor for me, and I suspect other people as well.

If people "did the math" Las Vegas would never exist.

True. There will always be some that purchase for convenience, I agree w/ you there.

The comparison to Vegas doesn't really apply completely. One cannot make up for a bad bet in Vegas by going back over and over, only the house wins (plus entertainment value). With free unlimited, one can recover the bet by investing time and milking it for all it is worth.

 

[nowtleft]

Since they started the referral Supercharging, the free unlimited Supercharging was eliminated for second owners -- it is not transferable. Your theory that it will affect resale values when it goes away should already have occurred. I don't know if it has or not, but just saying that there won't be a sudden effect next month (or whenever it actually stops), as it would have happened in early 2017 when the referral Supercharging started.

It goes with the car for the life of that car.

 

[BerTX]

It goes with the car for the life of that car.

Really? Do you have a reference stating that? It is a pretty carefully worded policy, that the owner gets the Supercharging, no mention that the car gets Supercharging. True that under the old system the car had unlimited free Supercharging, even if sold.

I hope you're right.

 

[Jeffgtx]

In your my tesla account under supercharging it says it goes to the next owner.

 

[Mark Z]

Driving long distances can add days to a trip. Calculate the cost of extra overnight stays, longer dining stops and the added miles on the Tesla that can reduce resale value.

For solo travelers, flying to a distant destination can offer optimal savings.

 

[schonelucht]

The cost to build out SC stations has fallen, and it's now included on (almost) every car, so at most it's worth at most maybe $1000, which is likely still built into the price of each car.

First golden rule of sales : never mistake the cost of something with the value it provides to a customer.

In this particular case, I would wager that the total cost of all superchargers build out, far outweighs the total value they represent to customers.

edit: Once the 'free supercharging' referral program ends, I suspect Tesla will go back to offering it as an accessory add-on for $1000 to $2000 for people that really, really want that.

Once they aren't production constrained on the S/X it may just come back for free even. Tesla has used the 'free supercharging' to great effect before as a demand driver. Next month they'll use it as a demand suppressor. The reason it works so well is the extraordinary value free supercharging represents to their customers.

 

[HankLloydRight]

Tesla hasn't been production constrained on the S/X for years now. That's a complete myth.

 

[schonelucht]

Tesla hasn't been production constrained on the S/X for years now. That's a complete myth.

I agree with you for 2016 and early 2017. But I think late 2017 and today they are. What makes you think they were not last quarter?