Tesla Network with drivers

[Sanny]

I really liked the idea that was discussed on the shareholders meeting about starting the Tesla network with human drivers. I think it will allow Tesla to leverage the existing community of Tesla owners and fans and spread the word about Tesla and advertise while polishing the experience and ironing out service.
I also think that if Tesla will not take a share of the profits from drivers (which I think is a right thing to do) they will have enough drivers to commit even for Uber like prices.
Also, general public will happily switch from Uber to Tesla network and download the app and see the car in person and warm up to the idea to buy it someday.
Some people would even lease the model 3 just to drive on the network.
At the same time, when investors will see the network, they will start assigning the value to it, and include it in the share price.

 

[Cheburashka]

Yeah, it's perfect for Tesla as that business is hilariously unprofitable for both Uber and Lyft and Musk is always looking for new ways to lose money.

 

[EVNow]

Yeah, it's perfect for Tesla as that business is hilariously unprofitable for both Uber and Lyft and Musk is always looking for new ways to lose money.

They lose money only if they compete on price and they spend a ton of money recruiting drivers.

 

[Cheburashka]

You think Tesla won't need to recruit drivers or compete on price?

I somehow doubt there is any critical mass of Tesla owners who are willing to drive their cars into the ground for under minimum wage.

 

[Sanny]

60%+ model 3 buyers come from no premium cars, close to 100% Tesla owners are super enthusiastic about their cars and love to drive them. The whole thing as a proof concept can scale quite slowly on purpose. Initially it can be limited to Tesla owners only, and it shouldn't be 100% reliable. E.g. I wouldn't rely on it going to the airport, but I would like to give it a try every time before going a regular route with Uber or Lyft.
I think all the above makes it a low risk enterprise in preparation to robobtaxis.

 

[dhanson865]

You think Tesla won't need to recruit drivers or compete on price?

I somehow doubt there is any critical mass of Tesla owners who are willing to drive their cars into the ground for under minimum wage.

There's two types of competing on price.

For the driver wages are the metric for competition

For the passenger (the final customer of the service) the price of the trip is the metric for competition.

You could easily be talking past other people if you don't specify which you mean.

I'd say EVnow, Sanny, and I would be thinking about the Tesla premium. The price for a ride on the Tesla network would be higher for the end customer/passenger. In that sense Tesla does not need to compete on price because the customer is willing to pay more due to the premium status of the vehicle they ride in.

If there is a price per ride premium for the customer that leaves room for a higher pay for the driver/car owner without Tesla having to reduce profitability.

I'm sure Tesla's thought is a driver included version would be less profitable than the driverless version and yes at a fixed price that would mean less wages for a driver, with greater pay when they stop having to be in the car if driverless happens in a reasonable time frame. So Tesla would probably try to delay such a compromise until just before they can eliminate the driver requirement.