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TSLA Market Action: 2018 Investor Roundtable

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Yes. This is how they should have done it. I've tried to explain pricing stuff like this to them before (as far back as 2014) and I thought they'd got the message....

So, what I wrote back in 2014 was this.

* Any time Tesla adds significant new features, they need to raise the price of the car with the new features.
* Ideally, the new features will be added as options. If they have to physically include them on all cars, they can software-lock cars which are going to people who don't buy the option.
* After a month or two, they can discontinue the model without the new features, making it standard, but at the higher price.
* A month after, they can reduce the price of the car with the new feature somewhat, honoring the price reduction for anyone who hasn't received their car yet.
* They can walk the price down a step at a time until it reaches the original price (or not, depending on pricing policy).
* They can also offer software unlocks for the same price as the option, and also walk that price down.
* About a year later, they can software-unlock the software-locked models at no charge without people being particularly upset.

Final result is that you have the new feature on all cars at the original price, but nobody is annoyed.

Rinse and repeat with every significant hardware feature. Nobody will complain.

And nobody (ok less people) will buy when new options come out.
Tesla has new stuff!
Eh, wait a few months, they'll drop the price.

Edit: I missed the dual availability part. I like @neroden 's setup.
 
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Loyalty begets loyalty. If he is making it right by customers that good will pays dividends. Fred didn’t need to sound like such a whiny b. But Elon is making a good move here.

This is limited to a group of people who bought the highest margin car, and those are people who most likely to be repeat buyers. And, this isn't refunding $5k. It's refunding $5k - future cost of Supercharging.
 
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If the panel has any statistically significant size it would probably leak like a sieve and affect demand and create rumors and fear.

A smaller panel would work, but the risk of mistakes would still be there and it adds delay. Most corporations are not democracies, they are centrally planned economies with a military style chain of command. The flat hierarchy of SpaceX and now Tesla is pretty exceptional already. Flat hierarchies make for more agile execution - but the risk of mistakes increases.

I'm honored by the suggestion of having me on a permanent advisory panel. But frankly a lot of this stuff doesn't need repeated panel consultation -- they just need to get one decent set of standard policies for what to do (such as the one I suggested) and follow it.

Like the software problems, where they need some sort of bug tracker and way of keeping counts of customer complaints about the same topic, and a method of prioritizing the complaints. It can be done in an agile and efficient manner. This is not rocket science, as the saying goes; almost any company can do it, even a startup, if they just take communications seriously for once.
 
And nobody (ok less people) will buy when new options come out.
Tesla has new stuff!
Eh, wait a few months, they'll drop the price.
Wrong! You and I might wait, but it turns out an astounding number of people want to GET IT NOWWWWWWWW. The only real benefit from the $40K "Signature" Model S reservation was getting your car earlier. People still went for it. Ditto Model X. On Model 3, many people were furious when the reservation line didn't get them their car earlier, and repeatedly said that they would have been fine with it if they'd gotten their cars in strict reservation order.
 
Rons price target is 20 times $300 = $ 6,000
Ron Barron's fund averaged buying TSLA at just over $200/sh. He has many times stated he believes a 20X return is possible although I don't believe he ever put a time limit on it and imagine it is pretty far out there. $4,000/sh for a multi-year return is still ok with me.
 
I am sorry for "Mister Electrek" being condemned so hard for his statement on Twitter.
Aren't we all sometimes pissed off seeing price reduction on things we bought?
The problem in his case ist that he has to overthink his public expressions twice, before posting it. "He" reacted too emotional in his knee-jerk reaction :confused:
 
Insecurity is inherent most of the time, not the "fault" of people affected by it.
Hmm, interesting. I've apparently always had massive self-confidence so I don't entirely understand how this inherent feeling of insecurity works. (I do feel insecure when I actually recognize a threat to my personal physical safety of course, but apparently that's different.)

It's not a problem in itself: Elon is obviously insecure as well, while in terms of accomplishments he would be justified to have the ego of Larry Ellison and the swagger of Arnold Schwarzenegger! :D

The problem with Fred is how he copes: that he often tries to boost his ego at the expense of others, rather dishonestly in many cases. We've listed three first hand experiences with Fred just here in this short discussion - which is statistically probably just the tip of the iceberg.

Yeah. I mean, Fred should be proud that he has such a lot of good reportage on his site, and he should gracefully handle criticism (like Zach Shahan does), but he reacts with this weird "ego defense" stuff.

Fred's behavior makes no sense to me because my ego certainly isn't helped by pretending that I didn't make a mistake. If I made a mistake and I really get caught on it, my ego is helped by owning up to it and correcting it, thus reinforcing my self-image as a scientist, an honest person, someoe with integrity.

Apparently Fred's psychology is different. If he had psychology like mine, his shadowbanning of critics would be weighing very heavily on him. I have no problem with him getting a free Tesla as long as he discloses it (pretty much every car magazine has nearly every article written by people who were being given free access to cars), but censoring people who mention it is acting like he has something to hide. Very odd.

Contrast Fred's deletion of criticism to the open disclosure of positions on Cleantechnica. When people said "Ah, Zach may be biased because he's invested in TSLA", his reponse was along the lines of "Yeah, that's been noted at the bottom of every article for years, what's your point?", and the commenters agreed.
 
Elon mentioned the next open period (insiders are allowed to purchase stock) is the coming Monday. I feel more rally is coming.

Hi,

Correct me if I'm wrong, but aren't these new shares created separately for Elon by Tesla, rather than him buying $20M worth of TSLA on NASDAQ?

That way, the $20M goes to Tesla directly to compensate for the FCF impact of paying their $20M SEC fine. Otherwise, the money goes to the current owner of the shares.

So Monday's buy by Elon shouldn't affect the market, beyond the sentiment and goodwill PR from his act to protect the value of existing shares.
 
Wrong! You and I might wait, but it turns out an astounding number of people want to GET IT NOWWWWWWWW. The only real benefit from the $40K "Signature" Model S reservation was getting your car earlier. People still went for it. Ditto Model X. On Model 3, many people were furious when the reservation line didn't get them their car earlier, and repeatedly said that they would have been fine with it if they'd gotten their cars in strict reservation order.

And I wouldn't complain (to Tesla/ general world) about a price / equipment change after I had made a purchase.

Signature is a status + donation to Tesla along with potential line jump (didn't some get their Sigs well after start of production?)
Reservations were potential line spot holding, and did not add to total car price (outside of interest/ investment).

In most cases, it is cheaper and less management to build out the stock of old parts, then start the new version rather than run two parallel versions. A little different for P since it was two versions...

Typical case is the MCU 1, MCU 2 swap, the new HW is better, but people paid the price for the old version of car. And no one would want the old version (hense adjustments)
 
Um, sure, mongo, but I don't see how any of that affects what I said. I'm talking about buyer psychology. What I proposed works, it doesn't create complaints, and it still does have people buying the model with the extra options during in the first month (specifically, the people who want it nowwwwww).

It creates a dynamic where you pay extra to get the new features *first*, before other people. So people who don't get the new features because they were too early think "Oh, well, I would have had to delay getting my car to get them at the same price". An early adopter tax. People are OK with that.

What upsets people is someone who orders 20 seconds later getting more features for the same price, not someone ordering four months later getting more features for the same price.
 
Um, sure, mongo, but I don't see how any of that affects what I said. I'm talking about buyer psychology. What I proposed works, it doesn't create complaints, and it still does have people buying the new model with extra options upfront in the first month (specifically, the people who want it nowwwwww).

I think I missed the parallel availability part on 1st-2nd read through. I personally like your plan.
:)
 
Ron Barron's fund averaged buying TSLA at just over $200/sh. He has many times stated he believes a 20X return is possible although I don't believe he ever put a time limit on it and imagine it is pretty far out there. $4,000/sh for a multi-year return is still ok with me.

Ron states that he believes Tesla will be in 2030 a trillion dollar company. That statement was made at October 2nd 2018 ( see below) with a SP close of $ 301 equals $ 51 bn MC. Going to a trillion makes it 20 times that number. What 20 times $300 means I calculated already.

So what are you disagreeing with?

A trillion $ reflects $ 6,000 SP and nothing else.

 
He should of stairstepped the price down over time in increments of $2k or $2.5k to soften the change. $5k is a lot; and why does it need to be in such big round numbers

Simple question: what is the PV of free unlimited lifetime supercharging? Feel free to use big round numbers. ;)

You go first, then I'll tell you my number.
 
Simple question: what is the PV of free unlimited lifetime supercharging? Feel free to use big round numbers. ;)

You go first, then I'll tell you my number.
Assuming an average 4 year ownership period, 20k miles per year average, 20% supercharging and 300 Wh/mile, that's 4800 kWh. An average of say 20 cents/kWh would bring it til $960. Average.
 
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I wonder if he feels like he was mislead by shorts who he trusted, and having previously backed their claims his integrity / honor / whatever has been damaged, because he trusted them to be truthful with him. If that's the case, it would explain the relatively savage comments that seem to indicate he has flipped positions - he's pissed at those that pulled the wool over his eyes.

Lol, deal with the Devil, spend the weekend in the BURN ward. Cheers!
 
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