The only thing I can think of is that Elon figured that if the director thought that insubordination was acceptable, that maybe she built/ran the team like that, and the rest of the team might refuse to follow orders as well. But that is a lot of assumptions.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Stretch2727
Engineer and Car Nut
I will let you guys interpret what this means.
No, I think you are reading the word "spinning" when it's actually SPLITTING.
It's Elon talking about FSD/robotaxies/Optimus. Analysts are not happy that Elon is putting more resources into AI(streaming for netflix) than cars (DVDs), splitting company resources. Eventually the car business will be old news and die off because they will be selling rides in the future and not cars.
Hope it’s Okay for guys like me to continue posting on this esteemed thread
Wow this is a big move!
For anyone unfamiliar - this means Tesla is absorbing the multi thousand dollar difference between the interest rate these cars are being financed at and the 0.99% rate Tesla is advertising.
In the past in the USA Tesla has usually just dropped the vehicle price instead of lowering the finance rate.
I prefer this strategy.
Tesla is back in battle mode and accelerating to flank speed toward autonomy.
Elon felt executive, indeed everyone’s, bandwidth too valuable to waste sorting through this SC team to find out how deep the slack went.
Also as has been mentioned previously, there are likely organizational changes driven by strategy. No doubt the Supercharger network remains not only strategic (as was obvious), but perhaps more so now. Elon can find better hands for superchargers more appropriate to the new strategy.
Do we know for sure that's how it went down?
Typically to get these rates, you have to go through the car company's financial department as car companies have became more of a financial institution today than a car company. So did Tesla set up a finance arm ready to put customer's debt on the balance sheet? Also I believe those company's financial institution spreads this out, as in only the top credit scorers get the promotion while they collect 10+% interest rate on people with a 650 credit score which are majority of the people.
I wonder if this will show up in Canada.
Hope it’s Okay for guys like me to continue posting on this esteemed thread
You may also want to read the left side of the Y axis. Note that the cumulative trials (of whatever data sample was pulled) reaches nearly 3,500. 20% conversion rate would be ~700. 2% would be ~70. Where's that dark bar showing cumulative conversions? Oh yeah, nowhere near 700.
I'll take an apology and a reversal of your serial downvoting of all my posts.
This thread has become useless/s
Tesla released Cyberhammer to wider audience and not a peep here . Now it’s out of stock. How am I supposed to get one now ??
In the past , we were always alerted by esteemed posters when something this monumental happened . Now it’s all about FSD and autonomy /S
Tesla released Cyberhammer to wider audience and not a peep here . Now it’s out of stock. How am I supposed to get one now ??
In the past , we were always alerted by esteemed posters when something this monumental happened . Now it’s all about FSD and autonomy /S
Stretch2727
Engineer and Car Nut
They just subsidize the loans through partner banks, and yes you likely need good credit. Does not mean Tesla is holding the debt.
Do we know for sure? No, but we have multiple reports that that is how it went.
We don't know that for sure. They could have a deal with a finance company to split the costs of the interest rate discount.
Knightshade
Well-Known Member
I mean, we do though.
You don't tell a manager "I'm firing everyone including you" then wait days, then fire that team. You'd just fire the team in the first place.
Nor is that what happened according to multiple reports including those on the team.
What happened is Elon told managers to lay off some amount of their staff-- it doesn't matter if it's exactly 10%, or 50%... we KNOW it's less than 100% or the team would've been out the door on the original layoff day.
The manager then refused to do whatever amount Elon wanted.
So Elon fired the manager and 100% of those under that manager. Then sent out an email suggesting this was an example to others.
Now it's being reported Tesla is trying to rehire some of them. Including at least one report in here from someone who knows an impacted employee- and said employee is debating if they WANT to return somewhere employees are treated that way. I've heard the same thing from another employee as well though it's second hand (like via a spouse so reliable second hand but still).
I know a lot of folks only remember Machiavelli saying it's better to be feared as a ruler--- but what he actually advised in Chapter XVII was that it is best to be both loved and feared. Only when that ideal is not possible, such as when gratitude dissolves during threats to survival, did Machiavelli suggest fear is a more reliable way to inspire discipline than bonds of love.
If this had happened in 2018 with Tesla facing immediate existential crisis I'd be a lot more open to the idea things were in that second state.
Today Tesla has north of 25 billion in cash sitting around. If being decent to the rank and file workers on the team meant it took a few more days to replace the manager and fire the # of folks you actually intended to instead of firing EVERYONE then hoping the ones you actually need are willing to overlook you doing that to them and come back, that's something Tesla could easily afford to do.
Rich Otto, formerly head of product launches at Tesla- actually resigned last week, specifically citing the impact of layoffs on morale. It's a thing.
Elon may not care... and there might yet be enough brilliant folks waiting in the wings to just glom in for anyone who decides NOT to return to a company that fired them to punish someone else... but it seems an entirely unneeded situation.
I mean, I don't have recordings of conversations-- but it's now been reported as confirmed by multiple employees that's how it went down. And seems reinforced by soon after Elon having emailed internally "Hopefully, these actions are making it clear that we need to be absolutely hard-core about headcount and cost reduction. While some on exec staff are taking this seriously, most are not yet doing so."
He wanted to make an example of an exec who wasn't following his orders to lay off some non-100% amount of their team. By executing the entire organization under that manager. Which they're now asking at least some folks to come back from.
Yeah and unfortunately without any detail it'd be hard to model the financial cost to Tesla for offering this- compared to MSRP or inventory discounts which are (relatively) easy to model.
So you're saying you'd like to have been informed when it was... Hammer time?
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If you go to Tesla's website, you can choose your credit rating or pick "Promotion" as your Credit Rating to get the 0.99%. Excellent Credit (720+) gets you 6.49%, Fair (< 640) gets you 11.64%.
To me, this looks like a move of desperation and we'll all see in 2 months, but I think we'll get bad Q2 numbers. That anyone can get cheap teaser rates has the housing credit crisis written all over it again. It'll goose the numbers for the quarter, until the repo man comes from people who should have no business financing a car, let alone a new Tesla.
Also, a lot of these teaser rates tend to have a * or something like individual credit conditions apply, blah blah blah. I didn't do an actual order, but did not see that on the bottom or in fine print. If they're going to reject all the bad credit ones, you might as well not bother. We'll find out in 2 months at least.
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Funny thing about that-most companies operate the same way. Refuse a direct order from your superior-get fired. It's insubordination and refusal do to your job. Except-unlike Elon-most don't ask for an E-mail explaining why they think you're wrong.
StapleGun
Member
I don't think this was about the supercharger team. It was about the other teams understanding how serious Elon is when he says cuts need to be made. The next time Elon tells a manager of a 500 person team to make cuts, those cuts will get made.
FastEddieB
Member
Stretch2727
Engineer and Car Nut
It's not that hard to model.
Tesla would have to upfront the bank about $1300 for every $10K financed to buy down the loan rate from 7% to 1% assuming a 5 year term.
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