Theory: 1000 deposit is to build supercharger network

[JoRey]

It was widely expected that Supercharging would be optional in the Model III and, was a welcomed surprise that it comes as standard. Do you guys think that the 1,000 dollar deposit was to cover part of the expansion of the Supercharger network? Clearly it is imperative for Tesla to expand the Supercharging network, or we will face long wait lines at the Superchargers. Thoughts? Ideas? Concerns?

 

[tigerade]

I don't think we can conclude that Supercharging is standard. From the Model 3 page, the "Supercharging capable" means to me that all the Supercharging hardware will be on the car, but you would have to pay extra to actually have the feature. Kind of like the old Model S60.

As far as the 1,000 dollar deposit goes, I imagine they would use it for expanding everything, not just Supercharging. Sales, service, the Gigafactory, the Fremont factory, everything. Tesla is going to become a much larger company as a whole to handle 500k auto sales a year vs 50k auto sales a year.

 

[ABCCBA]

It was widely expected that Supercharging would be optional in the Model III and, was a welcomed surprise that it comes as standard. Do you guys think that the 1,000 dollar deposit was to cover part of the expansion of the Supercharger network? Clearly it is imperative for Tesla to expand the Supercharging network, or we will face long wait lines at the Superchargers. Thoughts? Ideas? Concerns?

IMHO, the $200,000,000 in refundable deposits will be leveraged for a billion dollar stock and debt offering in order to expand production, delivery and service.

200,000 Model 3s will cost at least $5 billion to produce.

 

[craft]

I wonder if there are any legal/regulatory restrictions on how they can use the deposits since they are refundable. That could affect how they use the $200M+

 

[JoRey]

Im well aware, but as we all know supercharging is built into the price of the car. Nothing is free, while it is possible for it to be charged on a per Kwh basis. The fact remains that Tesla has already invested in tooling, design and battery production for the Model III. Clearly Tesla does not need the funds from Model III deposits to accomplish that. My main concern is that Tesla keeps it car to supercharger ratio. More over i found it very concerning that Tesla is only doubling the size of the supercharger network by the end of 2017. Currently the network serves around 100,000 Tesla's and it is crowded. Eventually this problem will solve itself, but i was expecting the supercharger roll out to be much more aggressive. By using the deposit, Tesla is able to continue expanding it's network to service the cars it will sell in the future.

 

[calisnow]

JoRey - there is no way to know where your $1,000 is going. Superchargers? Probably. R&D? Probably. Battery factory build-out? Probably. All of the above? Probably. Tesla Motors is a money vacuuming machine now and for the foreseeable future.

 

[ken830]

More over i found it very concerning that Tesla is only doubling the size of the supercharger network by the end of 2017. Currently the network serves around 100,000 Tesla's and it is crowded.

With the exception of urban areas in California, I wouldn't say it's crowded. And They are doubling the number of locations. They will, I am sure, also expand the number of stalls at current locations. They have a history of doing this at crowded locations. And they never announce it when they do.

 

[JoRey]

JoRey - there is no way to know where your $1,000 is going. Superchargers? Probably. R&D? Probably. Battery factory build-out? Probably. All of the above? Probably. Tesla Motors is a money vacuuming machine now and for the foreseeable future.

True... True.... I just hope that they expand the Supercharging network much more aggressively than what they have planned. Tesla has as of now already "sold" 250,000 Model III + 100,000 Model S + 50,000 Model X. In the near future we can expect that there will be 1 million Tesla's on the road. And by 2020 Tesla is going to be producing 500,000 Model III, seems like a short sight to me. However, electric car charge mainly overnight.

 

[calisnow]

True... True.... I just hope that they expand the Supercharging network much more aggressively than what they have planned

No doubt they will do so. So far I have never had to wait to charge except in Burbank where they have only 6 stalls. I have never seen a single Tesla at the desert superchargers going north to Mammoth, for example.

And the two superchargers leading east of Los Angeles on I-10 (Rancho Cucamonga and Cabazon) have tons of space to expand much more than double if needed - they could grow 500% or more and still have room in those parking lots.

 

[David99]

The cost for Superchargers is small compared to the total cost to build the Model 3. Since the actual realistic release of the Model 3 is 2 years away there is plenty of time to get Superchargers in place.

 

[TacC]

IMHO, the $200,000,000 in refundable deposits will be leveraged for a billion dollar stock and debt offering in order to expand production, delivery and service.

200,000 Model 3s will cost at least $5 billion to produce.

We have a winner!

 

[shrspeedblade]

I was more concerned about the supercharger network until installing/living with a 240V charger at home for my Volt2. Now, I think I'd hardly use the superchargers at all and would almost certainly go for a pay-per-use option which is in contrast to my thinking of only a few months ago.

Trust me, once you've experienced how cheap and easy home charging is (I know for some this isn't an option) it makes the supercharger network only a distance-travel need or an occasional nice perk, hardly a necessity.

Don't discount the human element, $1000 buy-in gets people in a frame of mind where they are eventually more likely to buy.