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TT97
Active Member
Garlan Garner
Banned
I don't get it either.
Maybe its what you do when you have a lot of money and no one is willing to "challenge" your decisions.
I believe that its associated with money some kind of way. The sales pitched Model 3 ($35k) won't be available for.....who knows when?
FlatSix911
Porsche 918 Hybrid
The Tesla Model 3 sales strategy has nothing to do with class warfare ... it's all about maximizing the profit from high spec models.
Are you planning to purchase a Model 3 with all available options today?
Are you planning to purchase a Model 3 with all available options today?
Lol to assume everyone of 400,000 reservations only want the base model 3 is hilarious.
Tesla is rewarding current S and X owners by givening them first dibs as a sign of gratitude. I would think non-Tesla owners would understand that, as there would be no model 3 if it wasn’t for those owners. Elon has said many times they needed to sell a expensive EV w/ bigger profit margins in order to fund the ability to produce a mass market affordable EV (model 3).
Now owners receiving configuring more than 1 model 3 before day 1 line waiting non-owners is a different story. I don’t believe current owners should receive more than 1 M3 but I do believe that’s not the case. Many have stated that owners are receiving multiple M3 prior Ron non-owners ability to configure but I’m told that’s bc those owners own multiple Tesla and are able to reserve and receive priority for each Tesla they own.
I’m an owner of 2 MX’s and reserved an M3 on 7/26/2017 and I was allowed to configure on 2/15. I think the owners configurations of M3 are almost over and non-owners should start receiving their invite to configure w/in next couple weeks. I’m anxious for non-owners to start taking delivery of the M3 bc I want to hear their reviews of the vehicle. I think it will be interesting to hear reviews from individuals that haven’t had prior ownership in Tesla.
I think it’s smart on Tesla’s part to continue to reward MS and MX. Tesla still needs both those vehicles to help offset the cash-burn of Tesla spending mega bucks on the infrastructure to produce the M3. Until Tesla Ramps production of the M3 to 5k plus/week its hard for Tesla to keep the production cost of the M3 down.
ProphetM
Member
At this point Tesla is rewarding anyone who buys an S or X, whether it contributed to Model 3's development or not. You can't honestly claim that there wouldn't be a Model 3 but for people who just bought a Model X a few weeks ago. But even they get to order a Model 3 now. Buy a Model X in December, place a Model 3 reservation at the end of January, and you get to order already, while us non-owner line-waiters are sitting here wondering when we're going to stop being pushed back in line by newcomers. They are still selling all the Model S and X that they make, aren't they? It doesn't matter to their bottom line if they give new owners priority, and it's no longer a reward, either.
Garlan Garner
Banned
That's just not true. You are mixing 2 different things.
Let me ask you a question. Does the money of previous owners differ from the money of non MS and MX owners - when someone purchases a model 3? Why would Tesla care who is paying for Model 3's right now.
A person who purchases a new Model S/X today is not contributing anything at all towards the creation of the Model 3. if so.....please explain how.
Exactly! We put our money 2 years ago when Tesla really needed the money for the model 3 development and tool up .... .at zero interest.
And we are still here waiting. I consider that loyalty and a real contribution to the Tesla plan.
No one (owner or non-owner) who wanted a Model 3 in March 31, 2016 could get one then. Everyone has waited ~2 years. You might see the waiting as loyalty; but I think of the wait as what it takes to get the car, given that 500,000 other people are showing the same "loyalty."
Our $1000 deposit does not fund Model 3 development. It is refundable, so Tesla cannot spend it until it sells us our cars. The deposit simply ensures that there are no frivolous reservations - we have to be somewhat serious in buying the car to get a place in line. Making it refundable means you actually don't need to be committed. And that's more reason for Tesla to appreciate an S or X buyer over a Model 3 reservation holder.
Because revenue is revenue and they can use that $$ to invest wherever they like in the company, including solar roof tiles. A deposit however, is not revenue until the car for the deposit is sold. This is key here: if Tesla's future is decided by Model 3 sales, then they need to start cranking them out faster in order get that revenue to pay for the HUGE R&D + production spending. Any help we can give them via an S or X purchase is a really big deal because at this moment, Tesla can't yet generate sufficient revenue on the 3.
This is the short seller's thesis for why Tesla will fail. They spend a ton but can't generate revenue to cover that spending.
So you are saying that they are not using the reservations money at all.... Now that's funny
Garlan Garner
Banned
Indeed.
Current owners didn't put anything up for 2 years. The well-to-do never have to.....
Garlan Garner
Banned
I don't believe that for one minute.
I don't care what Tesla is officially supposed to do....there is no way they haven't benefited from having $1000 from over 450k people. Why ask for it then?
Come on man..... lets get real about what it was used for.
I contributed to the development of the model 3 directly.
Garlan Garner
Banned
Indeed that is funny.
I suppose Elon just put that 450 to 500 million in his sock drawer FOR 2 YEARS for safe keeping.
It's basic accounting, actually. Tesla COULD spend all that deposit money, and the day a bunch of people decide they want to cancel because, oh I dunno, they don't want to wait anymore 
, and uh oh, there's no money to give back cause it's spent.
Any business that isn't trying any funny business with their accounting will set aside these funds and not count it as earned revenue.
How to Report Deposits in Accrual Based Accounting
, and uh oh, there's no money to give back cause it's spent.Any business that isn't trying any funny business with their accounting will set aside these funds and not count it as earned revenue.
How to Report Deposits in Accrual Based Accounting
TT97
Active Member
Yes, Tesla can't recognize the revenue of the deposits until they sell the car, but that is different than having the cash on hand. Tesla doesn't need any revenue to be able to spend on R&D as long as they have the cash.
Tesla receiving money for deposits is no different than receiving money from a bond sale (but at a much better interest rate). Their Q4 earnings loss was significant but their cash burn was minimized due to reservation depsoits for the Roadster and Semi (as well as collateralizing their MS & MX leases).
Tesla receiving money for deposits is no different than receiving money from a bond sale (but at a much better interest rate). Their Q4 earnings loss was significant but their cash burn was minimized due to reservation depsoits for the Roadster and Semi (as well as collateralizing their MS & MX leases).
I ordered a 718 boxster GTS new. Decided to go for a proper sports car.
I8 is good, but mid engine cars handle very nicely but not practical.
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