Tesla bans Stewart Alsop from buying Model X

[Just a Reader]

What an unbelievably cack-handed way by Musk to handle this thing. There may be good reasons not to do business with Alsop but the public doesn't get to see them. Tesla gets an enormous amount of free, positive publicity on the web, therefore they should be able to handle the occasional negative feedback as well.

Musk could have sent a tweet: "Sorry you didn't like the event, I'm sure you'll like your Tesla all the more" or something like that. Done. End of story. Now he looks vindictive and petty instead. If he isn't good at doing this, then he should hire someone to do it for him.

 

[JohnSnowNW]

What an unbelievably cack-handed way by Musk to handle this thing. There may be good reasons not to do business with Alsop but the public doesn't get to see them. Tesla gets an enormous amount of free, positive publicity on the web, therefore they should be able to handle the occasional negative feedback as well.

Musk could have sent a tweet: "Sorry you didn't like the event, I'm sure you'll like your Tesla all the more" or something like that. Done. End of story. Now he looks vindictive and petty instead. If he isn't good at doing this, then he should hire someone to do it for him.

So, you're recommending that the "media" be treated differently than other customers? Companies fire problem customers all the time, the difference is that customers don't usually go whining to the world about it.

You're listening to only one side of the issue, the side that is clearly a self-entitled schmuck, and deciding that Tesla should have handled it differently?

 

[aesculus]

You've got a crowd waiting, full of people who put down deposits in good faith, for a car which is 2 years overdue. To then make them wait for 2 hours is inexcusable, disrespectful and unprofessional and Musk deserved the public criticism. Feel free to ban me, Mr. Musk.

First off he was only 45 minutes late. We did not expect to see him at the start of the event. Him being late was not that big a deal but it had a cascading event in some respects.

But what is missing with him being late was:

They ran out of food real early. You don't have 2000 people at an event with nothing to do but stand around drinking alcohol and not expect issues.

There was little seating. Maybe enough for 5% of the attendees

It was crowded and people were constantly pushing each other to move from place to place.

There was nobody from Tesla to answer questions until after the reveal and then only for sig holders who wanted help with the design studio

There was NO agenda so you did not know what to expect

There were no cars to look at except Elon's after the 2+ hours and that was a mob scene with no one from Tesla controlling access except to the stage

The driving experience could not handle a small fraction of the attendees. I think it ended at 1am for any stragglers but it was supposed to end at 11? Again starting late made it impossible for them to process the number of rides

But all of this has nothing to do with this thread, just what got Alsop's underwear all in a knot.

 

[aznt1217]

So, you're recommending that the "media" be treated differently than other customers? Companies fire problem customers all the time, the difference is that customers don't usually go whining to the world about it.

You're listening to only one side of the issue, the side that is clearly a self-entitled schmuck, and deciding that Tesla should have handled it differently?

Please see what I posted. I don't think he was entitled I think he was just salty that he missed out on X.com... actually yea same thing LOL

 

[Just a Reader]

So, you're recommending that the "media" be treated differently than other customers? Companies fire problem customers all the time, the difference is that customers don't usually go whining to the world about it.

You're listening to only one side of the issue, the side that is clearly a self-entitled schmuck, and deciding that Tesla should have handled it differently?

I don't really see what you want to say here. Nowadays any disgruntled customer can cause substantial damage to a company's reputation if his complaint goes viral for some reason. To prevent this from happening is one of the duties of a CEO who is entrusted with investors' money.
I also fail to see why Alsop shouldn't have written in a blog about his dissatisfaction with the event. It was a massive event organized by a company for customers/prospective customers and the company itself made sure of big media coverage. It wasn't a private dinner party hosted by his neighbours.
As to listening to only one side, there is only one side who is doing the talking. The public doesn't conduct fair hearings anyway.

 

[bonnie]

The public doesn't conduct fair hearings anyway.

Clearly.

 

[Nubo]

You're listening to only one side of the issue, the side that is clearly a self-entitled schmuck, and deciding that Tesla should have handled it differently?

He felt he was treated poorly with apparent good reason, and made his displeasure known. Not sure how that makes him a schmuck but better a schmuck than a schmoe. Musk, on the other hand, forfeited his opportunity to be a mentsh. My estimation of him has dropped several notches.

 

[jeffro01]

He felt he was treated poorly with apparent good reason, and made his displeasure known. Not sure how that makes him a schmuck but better a schmuck than a schmoe. Musk, on the other hand, forfeited his opportunity to be a mentsh. My estimation of him has dropped several notches.

So let me get this straight, you have no idea what was said on the call but you feel as if you have enough information to decide to see Elon in a different light? What kind of logic is that?

Jeff

 

[goneskiian]

First off he was only 45 minutes late. We did not expect to see him at the start of the event. Him being late was not that big a deal but it had a cascading event in some respects.

Thank you for finally saying something. I've been trying to get to the end of the thread to make sure I didn't post over someone that did say something about Alsop's time warp.

The lie that the even started 2 hours late bugged me the first time Alsop's blog post came out. If you expect an event with that many people start when folks are asked to arrive by, then you're either stupid or high. Seriously, I still have the event RSVP and it says "Doors open at 7pm. Please arrive by 7:30pm." Elon went on stage at 8:50. Sorry folks, but that's not 2 hours late by any stretch of the imagination. Was it late? Yes. Would it have been gracious of Elon to acknowledge that fact? Of course.

I was smart (like many) and ate before the event because I didn't expect an event that huge to have food for that many people and I know how hangry I can get when I don't eat. Nor did I partake of more than one beer at the event. Why? Because I'm an adult and know these things about myself.

As for this most recent hubbub, I agree with those that say "We don't know all that was said on that phone call." Alsop is being a complete arse for dragging this all into the public domain. He should have contacted Elon in person if he was so offended by the event start time (again, NOT 2 hours late!). And he should definitely NOT have broadcast is all over the interweb that Elon felt the need to cancel his X reservation after insulting him in both public (blog post) and I think we can safely assume in private too (alluded to phone call).

Bottom line, if you want to buy a product from a company, perhaps it's best not to be an ass to the CEO to his face.

 

[rosinchard]

This context seems kind of important

Wired, April 2004: http://www.wired.com/2004/04/bust/

"Alsop tells of the time he was poised to invest in an online bank called X.com – until learning, literally days before NEA was to cut a check, that except for the company's founder, X.com's entire staff had quit. Sequoia Capital's legendary Mike Moritz, who can list Google, PayPal, and Yahoo! among his greatest hits, invested in X.com anyway – and ended up making Sequoia a bundle, Alsop says, when the startup was sold to PayPal. "There are times this business really mystifies me.""

So they have prior history: Alsop bailed on funding Elon's X.com at the last minute.

View attachment 110356
Interesting

 

[aznt1217]

This context seems kind of important

I certainly think so. Especially with the way that Alsop wrote the blog it goes to his state of mind. Think about it, he missed out on hundreds of millions of dollars because he didn't believe in Elon. Add that saltiness to whatever he wrote. You better believe he's going to find something bad.

 

[Just a Reader]

This context seems kind of important

Looks like a normal business decision at the time (not the best one, in hindsight). If that were the reason why Tesla isn't going to sell him a car, then it would really only be an issue of Elon Musk's ego.

 

[Haggy]

So, you're recommending that the "media" be treated differently than other customers? Companies fire problem customers all the time, the difference is that customers don't usually go whining to the world about it.

No you can't fire a customer, because that's not what the word means. You can sever a business relationship with a customer provided you aren't contractually obligated. In the case of the Tesla reservation agreement, Tesla was allowed to do that. It wasn't a deposit. It was a reservation.

Even though business relationships are severed all the time, I've never heard of a major company refusing to sell a product to a person because they didn't like him. In some states, it's questionable whether it's even legal, and can violate advertising laws. The Model X isn't yet shown on the website with pricing information, so that probably wouldn't apply here, but when a company advertises something and refuses to sell it at the advertised price, states can and do take action. California would be more likely than most to support a customer, but not in this particular case. There's no sale and no offer to sell.

It's still petty because it won't stop him from buying the car. It won't stop his wife or son from reserving a car and transferring the title to him, nor would it stop anybody from selling a used car to him. They are doing nothing more than kicking him down the queue. So what has Tesla gained?

 

[aznt1217]

Looks like a normal business decision at the time (not the best one, in hindsight). If that were the reason why Tesla isn't going to sell him a car, then it would really only be an issue of Elon Musk's ego.

Not so much the Elon part, but the part about the motivation for Alsop's writing and the way in which it was written (rather vindictive in nature). Comes down to first principles and risk of ill-will. We also do not know what happened on the phone conversation. Given this guys rep and their history it went bad (clearly).

 

[JohnSnowNW]

No you can't fire a customer, because that's not what the word means. You can sever a business relationship with a customer provided you aren't contractually obligated.

I used the term as it's been used several times in this thread. I don't really care to argue terminology.

- - - Updated - - -

I don't really see what you want to say here. Nowadays any disgruntled customer can cause substantial damage to a company's reputation if his complaint goes viral for some reason. To prevent this from happening is one of the duties of a CEO who is entrusted with investors' money.

Well, I disagree.

I also fail to see why Alsop shouldn't have written in a blog about his dissatisfaction with the event. It was a massive event organized by a company for customers/prospective customers and the company itself made sure of big media coverage. It wasn't a private dinner party hosted by his neighbours.
As to listening to only one side, there is only one side who is doing the talking. The public doesn't conduct fair hearings anyway.

Right, the side with everything to gain, and nothing to lose. I never implied he shouldn't have written the blog...I simply stated how he sounds in doing so. I also don't understand why you keep discussing the blog post as though it's the main reason for the cancellation...

He felt he was treated poorly with apparent good reason, and made his displeasure known. Not sure how that makes him a schmuck but better a schmuck than a schmoe. Musk, on the other hand, forfeited his opportunity to be a mentsh. My estimation of him has dropped several notches.

Yeah, we'll just have to agree to disagree on this. I'm not calling him a schmuck for his entitlement issues...but because he is, in fact, a schmuck. Now, if Musk cancelling this moron's reservation, for reasons you are completely unaware, makes you lose respect for Musk, well, that's your prerogative.

 

[Nubo]

So let me get this straight, you have no idea what was said on the call but you feel as if you have enough information to decide to see Elon in a different light? What kind of logic is that?

Jeff

You've got it straight. The car was 2 years late and Musk was far too late to his own gig with no explanation or apology. Which common decency would have him owe to everyone there, not just Alsop. That information is plain for everyone to see, and it's perfectly legitimate to complain about it.

My god, people have had money on deposit for years and Tesla can't have the decency to respect their time when the grand unveiling happens at last? The phone call should have involved some humility and reconciliation on Musk's part. I don't know what was said but I deduce it did not involve either. Whatever personal animus is between them is none of my concern. Musk doesn't "win" by canceling the reservation. It just makes him look bad, to me at least.

 

[DallasMaids]

No tesla for you!!!

http://i.imgur.com/gjo8E8a.jpg

Pardon the rushed photoshop job. Though this is the first image that popped in my head when I heard about this.

 

[LetsGoFast]

If I'm invited to a party & I have to sit around for an extra hour or so ... then yes, the host should acknowledge and say sorry.

But it would be even MORE rude of me to choose not to complain directly to the host - but rather to go on facebook or twitter and start a tirade with 'Shame on You For Wasting My Time'. And if I did that, I'd expect never to be invited back. And rightfully so.

The problem with this analogy is that it wasn't a private party. It was a corporate event / PR opportunity. If I'm invited to a party that is webcast live and reported on in thousands of media outlets, I'd feel more justified in responding on social media. I'm not disputing that Alsop is a jerk -- he probably is. I just think Tesla/Musk handled it poorly.

 

[ecarfan]

If that were the reason why Tesla isn't going to sell him a car, then it would really only be an issue of Elon Musk's ego.

I think you have it backwards. Alsop has a longstanding grudge against Musk because Elon went ahead and made a pile of money from PayPal (which came out of X.com) that Alsop missed out on. Combine that with Alsop's abrasive personality and publicly insulting Musk fueled by longstanding frustration and we arrive at where we are today.

 

[CarlK]

You've got it straight. The car was 2 years late and Musk was far too late to his own gig with no explanation or apology. Which common decency would have him owe to everyone there, not just Alsop. That information is plain for everyone to see, and it's perfectly legitimate to complain about it.

He's still doing much better than anyone else out there. No one else has anything like what Tesla offers and likely will not have any for a while. Even Alsop adimts this in his follow up blog. Elon might think he has nothing to appologize for taking on such an impossible task to provide the awesome product that we could all enjoy. I actually think he is right unless you tell me who out there is able to do better. In that case he does not have to fire customers. Customers will fire him.