Tesla Network (early release)

[wnorris]

I have been thinking more and more about an early release of the Tesla Network to human drivers rather than wait on an FSD release. I am throwing this out there to get thoughts as I am surely missing some key risks/downsides in this.

Differentiating elements from Uber/Lyft and baseline assumptions:

1) Tesla could help subsidize the cost of the Tesla M3 by allowing the driver to get back 10-15% of Tesla’s take. Since Tesla received revenue from the purchase of the car this might be the ace that allows Tesla to pull drivers from other services or incentivize new drivers.

Note: Uber’s take rate seems to be 25%.

2) Free supercharging for drivers who have met certain requirements – rides, fares, or time.

Driver benefits:
-Higher payout potential
-Potential lower maintenance costs (fuel especially, see #2)
-Drive a Tesla M3
-Subsidized car purchase (through increased payout, see #1)
-Ability to use their M3 in the Tesla Network once FSD becomes a reality

Passenger benefits:
-Drive in a Tesla M3
-Better for the environment

Tesla benefits:
-Drastically increase number of persons exposed to Tesla
-Increased revenue
-Tesla Network exposure and ability to exercise issues early

Tesla negatives:
-Increased headcount to support
-Capital costs to start

Overall, I believe getting more people in a Tesla and more Tesla on the road would be a HUGE benefit. This would establish the Tesla Network and increase its user base. Additionally, it would pull revenue from Lyft and Uber potentially making it harder for them to compete over the long term before FSD becomes available.

 

[heltok]

This could be one of the features that verygreen has been hinting at.

They need to introduce it sooner or later so it would make sense. Uber seems to have very high costs so not sure if the timing would be great right now though. Maybe demo it but not introduce it full scale yet. Offer it in Palo Alto while they test the system and then once they have FSD start offering it wherever they legally can?! Maybe even initially let the car drive itself but with human safety driver.

 

[anthonyj]

Just what Tesla needs, another money losing business. It won't even be useful outside of California, since there aren't many Tesla and not many people will care enough to download a Tesla specific app for ride sharing. How about Tesla focuses on improving margin of Model 3, and, idk, maybe do something with Solar since they are lagging in that regard

 

[anthonyj]

Uber has 2 million drivers and 15 million rides per day (7.5 rides per driver). If we assume 600,000 Teslas on the road and 1 out of every 500 Tesla owners use the app, you're looking at 1200 drivers. Insignificant for the amount of capital needed and to actually be somewhat competitive with rates. Why get in a Tesla for $40 when you can get around for $15?

 

[wnorris]

I am bringing back to life an old thread as there has been an increasing number of hints that we may see an Uber-like service announced.

On the latest The Tesla Show podcast it was stated that Tesla did not extend a lease and wanted the car back. This along with Cathie Wood's comments in the interview below are making me think there is a possibility this could be announced by end-of-year. Pure speculation at this point, but it would serve as a bridge to FSD.

The Tesla Show – A Tesla Podcast

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[Sanny]

I would be very excited to see Tesla rolling out Tesla Network in manual driving mode. I think it will unlock almost instantly $100b in valuation (that's a random number - I do not know math, but analysts doesn't know it either, so I might be right). It will serve as a statement of progress and confidence, so the market will react positively imo.