tesla msrp pricing..

[richkae]

It might be worth noting here that the domestic automakers learned a long time ago that building cars to order is not cost effective. You can still do it, but they'd rather not.

Who'd they learn this from? The Japanese. You can't order a Japanese car like you want, never could. You tell the dealer what you want, and they find one like that in dealer stock somewhere.

Build to order is great if you're Ferrari, but Tesla is not Ferrari. Tesla is aiming for much higher volumes, and this strategy flies in the face of Musk's desire to put an electric car in every garage. The manpower and logistics costs to do so in their current manner would be staggering.

I grow weary of this talk that Tesla is different and changing the world doing things their own way. The reason things are done the way they are is because everyone's had 100-plus years to figure out the most efficient way to build and distribute automobiles in volume. The entire rest of the world is not wrong, all in the same manner. It doesn't make sense.

The Japanese are noted for their efficiencies. Take note.

Even if it were true that "automakers learned a long time ago that building cars to order is not cost effective", I would argue that circumstances have changed.
If you had proposed the business plan of Amazon to the CEO of Sears 30 years ago, he would have laughed you out of the room.
Sears is all but dead, and Amazon is going gangbusters.

 

[mattjs33]

Correct. But that's what we're discussing. If you want to discuss some other industry, I'm happy to and apply the same to them.



Correct, but high car inventories certainly played a role, didn't they?



Time will tell. My money is on Mr. Musk. I can understand your pov just as well from this side of the fence. :wink:

Fair enough. :smile:

 

[Plug Me In]

You can order a car to your specs from the big automakers, but you have to wait 6 months or more to get it. Nobody wants to do that.:wink:

 

[jkirkebo]

You can order a car to your specs from the big automakers, but you have to wait 6 months or more to get it. Nobody wants to do that.:wink:

Why not ? Just order the car 6 months before you need it. Like if your lease is up in January, order a new one in July.

 

[Plug Me In]

Why not ? Just order the car 6 months before you need it. Like if your lease is up in January, order a new one in July.

That was a tongue in cheek (English for mild sarcasm) statement. Many people here have waited much longer than 6 months for their cars.

 

[Kaivball]

It might be worth noting here that the domestic automakers learned a long time ago that building cars to order is not cost effective. You can still do it, but they'd rather not.

Who'd they learn this from? The Japanese. You can't order a Japanese car like you want, never could. You tell the dealer what you want, and they find one like that in dealer stock somewhere.

Build to order is great if you're Ferrari, but Tesla is not Ferrari. Tesla is aiming for much higher volumes, and this strategy flies in the face of Musk's desire to put an electric car in every garage. The manpower and logistics costs to do so in their current manner would be staggering.

I grow weary of this talk that Tesla is different and changing the world doing things their own way. The reason things are done the way they are is because everyone's had 100-plus years to figure out the most efficient way to build and distribute automobiles in volume. The entire rest of the world is not wrong, all in the same manner. It doesn't make sense.

The Japanese are noted for their efficiencies. Take note.

I don't think this is accurate. Built to order can be very profitable.

Carrying inventory is not an asset, its a liability.

In addition, Tesla doesn't have a dealer network where you worry about invoice price and MSRP.

The most profitable companies ARE built to order. Make exactly what the customer wants. Not one more. Ideally one less.

 

[strider]

I simply stated that I think that at volume Tesla will eventually find their distribution model to be grossly inefficient, a view shared by others here, and there are sound reasons for thinking so.

I think you should separate build to order from the distribution/delivery system. As others have stated, BMW et al sell a few hundred thousand cars per year and do plenty of custom orders. Tesla's delivery system is inefficient but that's just because they're still ramping up. Once they have the country blanketed with service centers they can ship larger groups of cars to a regional center and distribute from there. Remember that Fremont has a rail line so once they get to that point they can ship hundreds of cars to the Eastern US or to ships for APJ and EMEA. All in due time.