Stop complaining and start promoting if you want Tesla to survive!

[chilman408]

Having an early Model 3 when they were rare was a privilege.

I still believe the survival of Tesla is essential.

All other auto makers will flip back to ICE if they get that chance.

 

[PhaseWhite]

If tesla is cash strapped, they should do an equity raise. They are a 50 billion dollar company.

Agreed, but Elon has stubbornly refused.

 

[wenkan]

If they really want to survive, they should not close the stores and referral program at the same time. Who will promote Tesla to friends without any reward after being annoyed by the price drop?

 

[electrictorque]

I have a model 3 Performance and a BMW 335xi. Driving the BMW feels like going back in time. Will never buy a gas car. Only electric and most likely my next car will be another Tesla.

 

[kbecks13]

It's their decision to pay the billion dollars off using cash on hand just like it is their idea not to use cash to purchase Maxwell.

They HAD to pay cash because stock price didn't meet the required amount. Conversion price was over $350 i believe.

Article: https://money.usnews.com/investing/...-cash-920-million-convertible-bond-obligation

As they just started shipping Model 3s overseas, there is a delay of receiving income which is why they may have a loss in Q1 but that is exactly my point; they are focused on the financials for this quarter instead of their long term viability.

I'm not really following, how is it that they are focused on financials for this quarter if they are taking a loss? It seems like they are sending the cars overseas because there is ample untapped demand.

 

[TT97]

They HAD to pay cash because stock price didn't meet the required amount. Conversion price was over $350 i believe.

Article: https://money.usnews.com/investing/...-cash-920-million-convertible-bond-obligation



I'm not really following, how is it that they are focused on financials for this quarter if they are taking a loss? It seems like they are sending the cars overseas because there is ample untapped demand.

You do know there are other ways to raise money? Just because they couldn't convert the bonds doesn't mean they couldn't raise capital other ways. It is Tesla's decision to "not tap equity markets."

Since they started international sales this quarter which take longer to convert to profit, their quarter financials will naturally suffer. Tesla could easily justify the loss for the quarter for the benefit of its long term viability. Instead, they are making short term moves in an effort to reduce the loss to placate day traders but to the detriment of their long term sustainability.

 

[StealthP3D]

Since they started international sales this quarter which take longer to convert to profit, their quarter financials will naturally suffer. Tesla could easily justify the loss for the quarter for the benefit of its long term viability. Instead, they are making short term moves in an effort to reduce the loss to placate day traders but to the detriment of their long term sustainability.

It's Elon's style to make the company appear weaker than it is, draw in the short-sellers and then release a bunch of super bullish results and forward looking news and projections so the shorts have to cover and the stock heads for the sky. TSLA will be over $370 within two months.

 

[David_Cary]

So much angst.
Tesla is working to maintain volume. The original plan was to ship to Europe and China. That is tricky on a cheaper car. Shipping costs money and then the delay in cash flow is HUGE. Never before have sales been so shifted overseas so quickly. That is a problem.
So - they went huge on a US demand lever.
We came very close to December delivery but it was a personal challenge for us. We got lucky with the price cuts so I am not in the same boat as the folks here. But - my 70D is worth a lot less because of AP1, model 3 and continual price decreases. I got over it and just placed an order for a LR - for the wife.

I got my car after a price decrease. Today you get 30 more miles, 1 sec less 0-60, better stereo, better air filtration, faster supercharging, better autopilot, cold weather package. For the same price.

The cheapest model now is faster than the original P85 and that was a $20k upgrade.

Very shortly after I got my car the 60D came out for a lot less. And then they upgraded to a 75 for $2k. I was out over $5k for not waiting on that.

We study history because it repeats itself.....

 

[rkalbiarEV]

This is Elon and Tesla's doing not ours! I am glad and appreciate everything Elon/Tesla has done for EVs but customers were played and that will reflect in loyalty!

 

[LBusDoor90]

How is this coming as a surprise to anyone? They are computers on wheels and other buyers getting more for less soon after your purchase is the way tech markets go. I paid for it when I wanted it last May knowing someone could pay less for my LR in 2019-20 (well, without the full tax credit though).

 

[GuyDude]

YES!! Stop bitching and complaining if you want Tesla to survive. If you feel 'cheated' then you did NOT do your research before buying a Tesla. You did not buy a BMW or a Mercedes. You are purchasing an American Made car from a Start-up that is desperately trying to survive despite all the critics... which unfortunately includes their own customers! Such a shame that many new owners don't understand the Mission! The objective is to get EV's into as many ppl's hands as possible... and that was made possible because of YOU!! All existing owners should feel proud that they are part of something MUCH bigger. 1Love

 

[TT97]

How is this coming as a surprise to anyone? They are computers on wheels and other buyers getting more for less soon after your purchase is the way tech markets go. I paid for it when I wanted it last May knowing someone could pay less for my LR in 2019-20 (well, without the full tax credit though).

Do you think non-Teslas still have hand cranks? Every single car on the market today is a massive computer. Tesla mechanically are much simpler than ICE cars so they actually have less computers to run the vehicle (no need to trick emission controls on a Tesla).

 

[⚡️ELECTROMAN⚡️]

Let Tesla do what they think they need to do. This is completely uncharted territory. No one got used. You bought a Tesla at the price they were offering it because you found that price to be acceptable. Why would you stop recommending Tesla? Because they lowered their prices? I'm recommending them more than ever now. They lowered their prices. How is this a bad thing for customers? It's a better deal now. They significantly lowered their prices. It's time for everyone to buy a freaking Tesla. The base Model 3 can be had for around $30,000 after incentives. That's the deal of the century.

 

[GuyDude]

So when they explicitly stated that you buying EAP or FSD after delivery would result to paying a higher price, which led you to make a decision to pay for these features up front, is not doing your research? Your statement is simply stupid. People feels cheated because of the fraudulent statement.

Tesla's success was all about innovating and breaking the mold from all the auto manufactures. The objective is to provide an innovative alternative to the status quo; and not to get EV's into as many people's hand as possible. So this sales ploy they are getting in rightfully needs to be criticized simply because it is not the strategy that got them their success. If they simply kept their original price points and further released or come up with additional features to their software, then they would still achieve their goals of raising cash.

For you to simply be a fan boy is more hurtful to their brand because you are consenting for Tesla to have practices that does not lend to build brand loyalty.

I agree. Very good point

 

[StealthP3D]

Do you think non-Teslas still have hand cranks? Every single car on the market today is a massive computer. Tesla mechanically are much simpler than ICE cars so they actually have less computers to run the vehicle (no need to trick emission controls on a Tesla).

Wrong answer. A Model 3 has roughly 100 times the computing power of other modern ICE cars. That's before the AP 3 hardware update!

Tesla's don't have cranks but Tesla forums do!

 

[happyzod]

Let Tesla do what they think they need to do. This is completely uncharted territory. No one got used. You bought a Tesla at the price they were offering it because you found that price to be acceptable. Why would you stop recommending Tesla? Because they lowered their prices? I'm recommending them more than ever now. They lowered their prices. How is this a bad thing for customers? It's a better deal now. They significantly lowered their prices. It's time for everyone to buy a freaking Tesla. The base Model 3 can be had for around $30,000 after incentives. That's the deal of the century.

They might lower the car to $15k. Or $10K. I would tell everyone to wait since it is a computer on wheels and it will drastically go down in price very fast. Even better deal.

 

[StealthP3D]

They might lower the car to $15k. Or $10K. I would tell everyone to wait since it is a computer on wheels and it will drastically go down in price very fast. Even better deal.

I was an early adopter of the Model 3 and Model 3 Performance, paying the highest price to get it sooner, and I'm glad I was.

Every individual will have their own price point where the purchase makes sense. I bought a $6,000 laptop in the mid-1990s and I'm glad I did. Current value: about $100. But I'm glad I didn't wait until now to buy it, I would have missed out on those first six years I used it. The way I see it, it was only $1000/year (and it made me much more than that!).

Cars are not investments in the hardware, they are tools. If you want the cheapest tool to get you from A to B, buy a 15-year-old Corolla or Civic. But if you want a Model 3 and are willing to pay for the benefits it brings, pick your price-point and buy it when it's worth it to you. It's never going to increase in value but it looks like it will likely be a very nice personal transportation workhorse with very low operating costs for years to come.

Henry Ford became one of the richest men in history by gradually reducing the price of his Model T over a ten year period from $825 in 1908 to $385 in 1918, causing it to sell one unit for every two cars sold in America. Yes, 50% market share! It would have had a higher market share had it not been production constrained. Because it offered the best value for the common man. That kicked off the automobile age which has caused millions of gruesome deaths (more than all the wars in the history of mankind combined). And that's not counting deaths due to pollution and carbon monoxide poisoning.

Now we are on the leading edge of the age of the electric auto. This will take gas autos off the roads at a faster rate than Henry Ford put them on! Lowering the price each and every year is an important part of making that happen.

 

[TT97]

Wrong answer. A Model 3 has roughly 100 times the computing power of other modern ICE cars. That's before the AP 3 hardware update!

Tesla's don't have cranks but Tesla forums do!

That's power, that's not quantity. You may be surprised to know there are cars available in the market that even have a sensor to detect rain!

 

[David L]

I love my TM3 and I've recommended it to anyone who's asked. I'm fine with price drops on the car over time, because this happens with all cars. In non-Teslas, it shows up as behind the scenes manufacturer incentives to dealerships, which dealerships pass onto customers who are willing to negotiate hard for them. I am not fine, however, with a price drop on an option that's not feature complete, because it penalizes earlier adopters twice, once when using a buggy/incomplete feature and again when the price drops.

After the EAP/FSD price drop debacle, I would no longer recommend purchasing a Tesla product early. A few weeks ago, I would have recommended purchasing a Model Y as soon as it's released, but now I would tell my friends to wait at least 18 months. It can't possibly be good for Tesla's future when a fan like me decides it's best to put off a purchase. If Tesla is depending on word of mouth advertising, then their job just got a lot tougher.

 

[ItsNotAboutTheMoney]

As Tesla is a public company, I do have an idea what their finances are. It's their decision to pay the billion dollars off using cash on hand just like it is their idea not to use cash to purchase Maxwell. Paying off the loan does not affect their i&e.

As they just started shipping Model 3s overseas, there is a delay of receiving income which is why they may have a loss in Q1 but that is exactly my point; they are focused on the financials for this quarter instead of their long term viability.

If you knew that Tesla was going to go bankrupt, would you lend them money or buy their cars? Financials of a debt-laden company affect lender and consumer confidence.

They worked through US demand at $7.5k tax credit. They used the MR to try to upsell some more. That's clearly done. They've been selling 6k per month for the past 2 months, which isn't enough for Tesla's structure, which is built on high volume.

On top of this, the reduction in tax credit, plus the availabliity of both Model 3 and competitors' luxury long-range BEVs is also reducing the S and X markets.

So SR is here. Tesla has had to do everything they can to reduce overheads to be able to release it profitability. Model 3 is now decidedly an entry-level premium car, and the option pricing reflects the $42k ASP of that segment.

The PUP is broken up to offer an upsell to the SR buyers who deal more with cold, so want heated seats and will benefit from a bit more range.

Autopilot is back to the same key features and $500 more than it was when the Model 3 was launched 3 years ago, because $5k for the usable features that are now becoming widely available across the industry isn't going to get much take.

SR + Partial Premium + AP + Color
= $35k + $2k + $3k + $1.5k
= $41.5k