Responding to the "Rich Man's Car" Comments

[Puyallup Bill]

I rarely get the comment, but when I do, I just shrug my shoulders and respond with: "Guess it all depends on how you choose to spend your money." For a clincher, I used to whip out my $8.50 a month dumb TracFone. But, I finally had to breakdown and get a smart phone, as I wanted to be able to use the LEAF and Model S apps, and the iPad doesn't fit in my jeans pocket.

 

[brianman]

Leilani, next time try replying "that's a bit sexist". I'm sure a whole different conversation comes out of that response.

 

[Andrew]

Shortly after college, I worked as a cashier in a high-end audio store. One of the most valuable lessons I learned that is that what people think is "affordable" or "expensive" varies widely, and it doesn't necessarily have to do with their income or bank accounts.

 

[santana338]

I just tell people I've been saving since high school (just went to my 30 yer reunion last year). If that doesn't work I'd try telling them it was cheaper than a Porsche and I can fit my whole family in the car.

 

[Raffy.Roma]

Everything is politically charged – one way or another. And TSLA can’t escape that either.

Maybe that this is true. But I think that Tesla should try to keep an independent and neutral position anyway. It's always good to be "super partes" in a so difficult situation concerning the environment like that we are undergoing now. You can get better results.

 

[irishstoutaz]

With as many followers that you have on your FB page you will see all kinds of comments and shouldn't take it personally. The MS certainly is not a cheap car and glad we have been fortunate enough to be able to buy one but had the 40 still been in the offering, more people would have been able to afford it.

They also have to consider all of the costs of ownership. I don’t necessarily agree with the all of the items in the ‘True Cost of Ownership’ on the TM site such as 'Residual Value', 'Shorten your Commute' and 'Avoid the Gas Station' being real factors that can reduce the cost but there are definite savings when you figure out how much you spend in Fuel vs. what you would spend in Electricity so is something that people need to factor in along with ongoing maintenance, any tax rebates, reduced registration fees, etc. that ultimately bring the cost of ownership down to a level where it is closer to a reality for more people. The average cost of a car I believe is now over $31k so if you go with a base 60 model and use some of these factors, it becomes not much more expensive than an above average cost vehicle.

There have also been many posts from people that have the MS that are not necessarily wealthy and just have managed to save and/or plan appropriately. As others have also stated and you have pointed out, the Gen III car is coming and will be basically in line with an average priced car and costs for things do go down after time.

 

[GlennAlanBerry]

I agree that environmental issues actually do affect everyone, but in the United States, much of the anti-Tesla, anti-EV sentiment is politically motivated. Its pretty hard to credibly dispute that. I think it just helps to understand the motivation of a decent part of the anti-Tesla crowd, who are extremely unlikely to be won over by evidence and rational arguments.

I also think it is pretty obvious that some percentage of Tesla criticism is economically motivated. Some people are worried that widespread adoption of EVs will economically hurt them or someone they know, so making negative comments about Tesla seems to be in their own economic self interest.

I agree that Tesla itself should stay neutral and non-political, and not tout the environmental benefits of the Model S. There are plenty of other good reasons to want a Model S, besides being "green".

 

[ItsNotAboutTheMoney]

I would do some simple arithmetic with people.

What's 1M ÷ 100k? 10
What's 1M ÷ 1M? 1

This is the power of volume in a research intensive business. It applies to Tesla and it applies to Tesla's suppliers.

Then consider how you get volume: you lower manufacturing costs so you can lower the price so more people buy your car so your per unit fixed costs are lowered.

Keep working to reduce costs of key components, including the battery.
Make extensive use of essential technology developed for and paid for by the Model S and X.
Get suppliers ready for high volume at a lower price.
Decontent and simplify where possible without affecting the core appeal.

 

[yobigd20]

I usually ask them back 'what they are currently driving' and then explain to them that even though the Model S may be 2x or 3x more expensive up front than their car, it's actually cheaper than what they are currently driving due to the true cost to own over the vehicles lifetime. cheap car+gas is more expensive than the model S+no gas. the savings from not having to pay for gas alone will pay for the car in it's entirely given enough time(aka mileage). then I add that you get $7500 credit back from the government, plus in NJ there's no sales tax or luxury tax on EVs so thats another $7k in savings, then say that you'll never need to waste time filling up for gas several times a week nor even have to get the car inspected every year (EVs are exempt from inspection in NJ), then I add that I'll never have to pay for an oil change ever again, and next I explain that brake pads and rotors will last at least 5x longer due to the regenerative breaks which is another several thousand dollars in savings, and then to top it off I add in the savings from the discounted green pass tolls.

that usually lights a spark and shuts them up. To date, I've never had anyone that I've explained this to exactly like that ever say a word again about how 'expensive' the Tesla Model S is. puts them in their place every time. works like a charm.

 

[SwedishAdvocate]

Maybe that this is true. But I think that Tesla should try to keep an independent and neutral position anyway. It's always good to be "super partes" in a so difficult situation concerning the environment like that we are undergoing now. You can get better results.

I think we might have misunderstood each other.

I of course agree that Tesla should stay out of party politics.

But when ‘we’ who for one reason or another want Tesla and electric cars to succeed in a massive way and as rapidly as possible – are confronted by various criticisms against Tesla, their cars or other electric cars – the reality may be (however unfortunate), that…

…s]ome of these attacks are politically motivated, often from people who somehow equate Tesla with "big government" and environmentalism as some sort of threat to them personally.

That’s what I meant with that post.

 

[ggies07]

That was great info! I just gave this exact reason to someone I was talking to on this subject and I also used this graph:

 

[caddieo]

Relax and let it in one ear and out the other. Consider this: almost all significant technological and innovative advance has started out as a "rich man's toy" ---- the first radio, the first TV, the first cell phone, the first computer, ocean cruising, the first commercial plane flights, and yes--- even the first gasoline car.

 

[wcalvin]

You can also tell them that the early adopters paying 3x are paying for the R&D that got the product on the market. Seat belts used to be a custom option.

 

[eAdopter]

I sometimes respond with an answer such as this:

“It’s somewhat expensive, but you’re right, not everyone plans ahead like we did. We drove the same car for 15 years while saving for a new car. That’s how we purchase almost everything.”

Our friends, family, and neighbors then recall that we drove a 1998 minivan until 2013. Some thought we were poor.
(I like to call it frugal.)

Then the lights come on as they think about it and some will add a comment such as “you could have paid-off your mortgage with that money”.

We respond: “Did that too…years ago. We also saved enough to send both kids to private college.”

All on one modest income, with no financial help from anyone.

My point is this:
Save. Almost every middle-class American can afford a Model S. Most people simply didn’t take the long-term steps that were necessary.

 

[Six]

In news coverage when the price of a car is quoted they almost always use the base price of the standard model. However for a Tesla, the price is routinely quoted as $100K. That simply is not true. The base price for a Tesla is $63,570 (including tax credit but that is fair since every buyer gets it). Given real fuel savings over several years cost is more like $55,000. And that is not even close to $100K.

I do a lot of car shows (electric car shows, exotic cars shows, and car exhibits at other events like fairs). Frequently there is a Model S 60, parked near my car (a P85+) and people are surprised at it price and that it looks basically identical to mine. So much focus has been placed on the 100K price and the high end version of the car that even people who are reasonable educated about the Tesla are surprised at what a value the Tesla 60Kwh actually represents.

No, a Tesla Model S 60 is not cheap BUT it is not in any way a rich man's car (except being better then the cars most rich people buy )

 

[EarlyAdopter]

I believe most people deep down inside want to do the right thing, and they can see driving an EV is the right thing. But they also don't want a 75 mile range anxiety inducing funky looking econobox. So to hear how amazing the Model S is and see that wonderful 200 or 265 mile rated range and know it's an EV, well - they want that! But when confronted with the sticker price, it's only natural they get frustrated.

Some people deal with frustration by dismissing it and finding straw man arguments to make themselves feel better. "It's just a rich person's car" or "it's really not environmentally friendly" or "it's just a coal car." People don't come out with these arguments for other $70k-$100k cars because they don't really care about them. They don't want them. But they do want a Model S. I think there's latent anger misdirected towards Tesla because they see no car manufacturer is giving them what they want. When they look around at all the other EV offerings from other car companies they only get more frustrated and dismissive.

Gen III, at $35,000 and 200 miles, will be absolutely revolutionary.

 

[bonnie]

I smile and say how lucky I feel to be able to have the car I have. And most have responded 'well, you earned it'.

I never feel I owe anyone an explanation for stuff like this. They have no idea if I made a killer real estate deal, invested wisely, won the lotto, or blew my last bit of cash just because I wanted to. And they don't need to know. I'm not going to justify it because of the environment or performance or total cost of ownership ... I'm grateful to have the means to own the car I own. That's the only thing they need to know.

 

[cinergi]

I'd just be careful not to mix up genuinely-interested-but-can't-afford-it-right-now people (who probably aren't going to cry the literal words "rich man's car") vs. the naysayers (who will use that phrase). Ignore the latter, educate the former. Be uplifted that so many people want it, blessed you can have yours, and wield your position's power to educate. Let the others bounce off that thick skin of yours

 

[jerry33]

And most have responded 'well, you earned it'.

I get that a lot at work.

 

[Ludus]

Most Americans can't afford to buy ANY new car, they buy used cars if they can afford a car. There are over 250 million vehicles on the road in the US and 14 million or so sold in 2012. "Average" income is a rather deceptive measure of central tendency since there's effectively a floor on income but no ceiling. A Chevy Impala loaded or a comparable Toyota is in the high 30k's and most people think those are everyman's cars...but most Americans can't afford to buy them new.

By the time the Gen III (Model E?) is out, used model S's will be available for under $35K. The used car market is much larger than the new car market and Tesla seems to be using a disruptive approach there too. Tesla's should last longer and be easier to maintain and refurbish than any IC car. Tesla seems to be trying to keep the resale/refurb as well as repair markets in house. If you look forward 10 years if Tesla succeeds there will be plenty of affordable high quality Tesla's available at less than $20k even if new Tesla's never are priced less than comparable Mercedes or BMW. They will be in the category where most Americans buy their cars...used.