I’ve been thinking about how the Tesla Network might be initially rolled out.
When Tesla first started leasing the Model 3, there were concerns at the time that demand had dropped and the leasing program was needed to shore up sales/revenue. I think it was in a quarterly announcement that Elon was asked about this and he made the statement that Tesla would not be reselling any end of lease Model 3’s, but would leverage them on the Tesla Network. With approximately 10% of US Model 3 production going towards leasing, there will be 10’s of thousands of cars available soon.
Tesla could release v.9 of the Tesla Network by making a deal with various entities in the State of California: University of California system, state and local government, etc. Tesla assigns cars to these entities and makes them available to associated students, faculty and employees. In the University of California System alone the are over 500,000 potential customers. These customers would drive the cars, no FSD involved (in this v.9 release). So you get around the whole issues Uber & Lyft are fighting today in California regarding drivers as employees.
California is ideal since Tesla is able to provide insurance in that State and California is aligned with the push to reducing emissions. A university is ideal as you have lots of young people that would love to drive a Tesla home for the weekend or to run errands, etc. and of course Tesla is right there and likely already has relationships built with many of these institutions.
Tesla can vet the app, the drivers (which will eventually be riders), and can start working to own the hearts and minds of future Tesla Network FSD riders. If successful in California, the could implement the same model in other states or regions as they incrementally move toward a Tesla Network FSD v.1.
When Tesla first started leasing the Model 3, there were concerns at the time that demand had dropped and the leasing program was needed to shore up sales/revenue. I think it was in a quarterly announcement that Elon was asked about this and he made the statement that Tesla would not be reselling any end of lease Model 3’s, but would leverage them on the Tesla Network. With approximately 10% of US Model 3 production going towards leasing, there will be 10’s of thousands of cars available soon.
Tesla could release v.9 of the Tesla Network by making a deal with various entities in the State of California: University of California system, state and local government, etc. Tesla assigns cars to these entities and makes them available to associated students, faculty and employees. In the University of California System alone the are over 500,000 potential customers. These customers would drive the cars, no FSD involved (in this v.9 release). So you get around the whole issues Uber & Lyft are fighting today in California regarding drivers as employees.
California is ideal since Tesla is able to provide insurance in that State and California is aligned with the push to reducing emissions. A university is ideal as you have lots of young people that would love to drive a Tesla home for the weekend or to run errands, etc. and of course Tesla is right there and likely already has relationships built with many of these institutions.
Tesla can vet the app, the drivers (which will eventually be riders), and can start working to own the hearts and minds of future Tesla Network FSD riders. If successful in California, the could implement the same model in other states or regions as they incrementally move toward a Tesla Network FSD v.1.
