Underwhelming and disappointing experience so far with my reservation

[dcopperfield]

I've been a long time reader of this forum and know that I should contribute more but haven't really had much to add until recently.

I was one of the early people to put money into this company (I put my $5K down in August 2009.) I also did this with the understanding that I would be one of the first to receive the car and it actually upgraded to a signature but reluctantly downgraded back to a general production because the blue color was not available for signature reservation holders.

The past week has been a very disappointing experience for me. There are two other reservation holders that I referred to tesla and both have received confirmation that their car is ready for delivery this weekend for one and the middle of next week for the other. You can imagine the frustration from someone who had put their money down on a car several months before.

What's worse is I have gone through multiple delays on delivery windows and have been banking on purchasing this car before the end of 2012 for tax reasons. I now cannot be guaranteed the car before the end of the year.

I understand the process of batching and the need to get as many cars out as possible; however, delivering cars to folks significantly down the line and bypassing people that were one of the first 1,000 people to faithfully put money down and believe in a "startup" company for over 3 years is just wrong. I understand that Mr. Blankenship was one of the lead people on the Apple retail front. I can't imagine what would happen the day a new iPhone releases if you had people who stood in line several days to be among the first to get the phone and when the doors open, the apple retail crew walk past them and started handing out phones to people in the back of the line.

The bigger need is obviously for the company to hit a production number, but not at the expense of disappointing customers who have been patiently waiting for so long and not providing clear communication along the way. Im sure two years down the road this will be of no major significance to me but today, I don't have the same pride as I used to have in being a reservation holder.

Good luck and congrats to those of you who have a VIN # and delivery date.

 

[contaygious]

I tend to agree with you having put down a deposit very early as well and then seeing 5k numbers get delivery dates. I also see the apple analogy, but I am more forgiving because I want tesla to get out as many cars as possible to hit their goals so they can survive as a company and I understand the delays for some parts that you and I have are mostly out of their hands (assuming this is the case even though they won't give any conformation or this).

 

[badgerlake]

I put my deposit in on march 29th 2009 and also decided to forego signature for a blue car. I was similarly frustrated. My nearly four year wait was justified b/c I was happy to put my money where my mouth was (said I would buy an electric car when someone finally figures out you don't have to make ugly cars that only serve the enviro feel good side - basically you can have it all). Tesla has done that.

Tesla should reciprocate and understand us early early folks should be taken care of more for our commitment and belief in them and less about the quickest road to making quarterly numbers (but that is important too). I do think they understand this but it doesn't feel that way all the time.

Send a note to [email protected] - they have been responsive there. I was able to get my VIN recently so I have been talked down from where I was at. Good luck and hang in there.

 

[Lyon]

What's your sequence number? What's your configuration? There are supply issues that are outside of Tesla's control that will lead to cars being built out of sequence. They simply cannot stop the production line and wait for parts; they need to build the cars they have parts for. I hope that they can get you your car before the end of the year but, frankly, you're still going to get your car relatively early.

 

[JakeP]

I do feel bad for people who have reservations made 2-3 years ago, and who have to wait until 2013. I am sure that if Tesla had not seen delays and supplier shortages, they would have done their utmost to deliver cars as close to the order sequence as possible. But now that the Sigs are delivered, it is unrealistic to expect Tesla to not deliver cars that it can and has produced, in order to realize revenue. This helps them succeed and be able to build more cars. And who knows, maybe even show some appreciation to the original reservation holders in some unexpected way down the road.

 

[dcopperfield]

Lyon: See below: (note, i ended up picking black anyway... should have just stayed a signature reservation holder!)

VEHICLE Model S Base Price
Excludes $7,500 Federal Tax Credit $57,400
Black Solid Paint Included
All Glass Panoramic Roof $1,500
21" Silver Wheels $3,500
Black Leather Interior $1,500
Lacewood Décor Included
BATTERY 85 kWh Battery $20,000
OPTIONS Tech Package $3,750
Sound Studio Package $950
Active Air Suspension $1,500
CHARGING Twin Chargers $1,500
High Power Wall Connector $1,200
Supercharging Included
ADJUSTED VEHICLE PRICE $85,300

 

[Ceilidh]

I hear you. I am in the same boat. I would have had my car already if I had the large battery. Having said that, with jealousy aside, I very much support this company and after 3.5 years waiting I think I can stomach a few more grueling weeks. In truth, I've been waiting for this car for far longer than Tesla has been in business. On that timeline, a month here or there makes no significant difference. It's just human nature to feel that you deserve it sooner.

"I want an oompa loompa NOW daddy!"

Cheers, and best of luck that you get it soon.

 

[Robert.Boston]

This reinforces the notion that 21" wheels are a supply constraint.

 

[Beavis]

@JakeP - All Sigs aren't delivered. There are a handful of us still hanging around waiting for our cars. @dcopperfield - Relax. How do you think it feels to be a reasonably early Sig and see all these general production cars flying off he shelves? You put in $5,000 pretty early on but we put in $40,000 and we're still waiting.

As many have said before, you will not be able to make any sense of trying to figure out the production sequence and it's not as if they are going to hold up the line or deliveries just so they can deliver cars in sequence. Hell, if that was the case none of the GPs and half the Sigs wouldn't have received cars because mine isn't delivered yet. The only reasonable thing is to do whatever it takes to produce and deliver the most cars as soon as possible and that seems to be what they are trying to do.

 

[AnOutsider]

I commiserate with you. At this point I believe my car is on a truck, but its been a tough ride, and most of my gusto for the company has gone as well. Logically, I see what's happened, happening and understand it, but I still can't help feeling VERY let down. Like you said, once the car arrives and time passes, it won't sting as much, but it definitely put a damper on the whole tesla experience.

The kool aid is at the back of the fridge.

 

[PRJIM]

The Tesla sales process is much less painless if you look at it from the "I am lucky to get one" perspective.

 

[timdorr]

If it helps reconcile the issue a bit, an important thing to note is that you're not all in line for the same car. A way to think of it is that each color, option package, and battery selection forms a unique SKU for Tesla. They are building them all as fast as they can, but certain SKUs require parts that aren't as readily available.

Since we're using Apple as an analogy here, look at the new iMac released today. If you want the 21", it's a 1-3 day ship time. If you want the 27", it's 3-4 weeks (up from 2-3 weeks earlier today!). Everyone ordering is getting an iMac, but some are getting them weeks ahead of others because they chose the SKU that has parts readily available. Similarly with Tesla, you might have ordered a performance model whereas I got the regular version. Or you might have gotten a 60kWh battery pack. Because the parts for my particular configuration/SKU are available, and they have a factory full of people that need something to do, they've gone ahead and produced my car. I'm getting it in a few weeks. Unfortunately, due to problems outside of Tesla's direct control, they appear to be running short on Performance model parts. That means they're skipping ahead on the list.

Now from a financial/shareholder perspective, this is the best decision they can make. They're just about to go into the black (according to comments by Elon a few months ago) and require maintaining a certain production rate to achieve the efficiency needed for fiscal stability. If they were to drop that production rate in order to maintain a strict reservation order, that would mean dropping the production rate. That would threaten their financial health and as a shareholder, I would be pissed at them for doing that.

So, it's a bit of a damned if you do, damned if you don't situation. I feel for you, but understand that Tesla's got to make the best decisions to ensure it's own health as a company. I would be even more upset if they went under because of financial mismanagement. They don't have a lot of room for error on the financials, so if they have to play around with the production numbers a bit, so be it. I'll be happier when they're still around to service my car in 5 years than getting it a month earlier.

 

[vfx]

...So, it's a bit of a damned if you do, damned if you don't...

+1

Patience will allow the company to live.

 

[dsm363]

Great post timdorr. They have undoubtedly made mistakes and made some people upset but things finally are starting to roll along. A successful company is what we all want and if that means producing things out of order then that's what it takes. Doesn't make the whole process any more pleasant for the people who experienced multiple delays though.

 

[walla2]

Tesla never made any written promises about sequence or Signature list priority, but they sure did imply and verbally state the crap out of them. I know Sig 1 thought he would be number one (He was the only one delivered in sequence it seems). I know P1 thought for the last 3+ years that he would have the first production car off the line after the Sigs. I know personally that I thought I would have gotten my Sig upgrade (originally P 2407) before P 3366. I know Kroneal and AnOutsider feel the same way that I do at least about that. The sequence numbering issue really hurt my personal opinion of the company. Business is business I guess, but I was expecting this company for some reason to be different than most. Perhaps, they will still prove to be. I understand the shortages, the rejects, the batching, the Canadian cert holdup, and the 40/60 pack issue. For some reason, it doesn't make the delays and the accompanying silence any easier to swallow.

With my car likely arriving tomorrow, I have only a few hopes at this point. I hope the car lives up to my Amp'd experience, and that it proves to be durable in the long term. I hope the remaining Sig-hicans and the P-assovers get their cars soon. I hope George or someone at Tesla comments about mis-sequencing soon. The last post on the "28" doesn't really explain any of this, and I think softening the blow officially will help so many future owners as they wait for that lucky day when their random number is drawn for the line.

 

[Beavis]

Walla, I understand the batching, parts shortages, and all that. The 2 things I still don't understand, and probably never will, is that they didn't tell me I was one of the 28 and that cars with my configuration went to owners with sequence numbers after mine. At this point, there is nothing more to do about it except hope. I hope the car is worth the money and the roller coaster they put me on.

 

[AnOutsider]

The Tesla sales process is much less painless if you look at it from the "I am lucky to get one" perspective.

Precisely the attitude I DON'T want Tesla to have, and neither should you (unless you're ok with being walked on). They're not doing this out of the goodness of their hearts, and I'm not a giggling teenager screaming wildly for the sweaty artist on stage. My money paid for my car, its not a blessing bestowed upon me.

 

[Norbert]

Precisely the attitude I DON'T want Tesla to have, and neither should you (unless you're ok with being walked on). They're not doing this out of the goodness of their hearts, and I'm not a giggling teenager screaming wildly for the sweaty artist on stage. My money paid for my car, its not a blessing bestowed upon me.

Something tells me this isn't going to do anyone any good.

 

[heems]

If it helps reconcile the issue a bit, an important thing to note is that you're not all in line for the same car. A way to think of it is that each color, option package, and battery selection forms a unique SKU for Tesla. They are building them all as fast as they can, but certain SKUs require parts that aren't as readily available.

Since we're using Apple as an analogy here, look at the new iMac released today. If you want the 21", it's a 1-3 day ship time. If you want the 27", it's 3-4 weeks (up from 2-3 weeks earlier today!). Everyone ordering is getting an iMac, but some are getting them weeks ahead of others because they chose the SKU that has parts readily available. Similarly with Tesla, you might have ordered a performance model whereas I got the regular version. Or you might have gotten a 60kWh battery pack. Because the parts for my particular configuration/SKU are available, and they have a factory full of people that need something to do, they've gone ahead and produced my car. I'm getting it in a few weeks. Unfortunately, due to problems outside of Tesla's direct control, they appear to be running short on Performance model parts. That means they're skipping ahead on the list.

Now from a financial/shareholder perspective, this is the best decision they can make. They're just about to go into the black (according to comments by Elon a few months ago) and require maintaining a certain production rate to achieve the efficiency needed for fiscal stability. If they were to drop that production rate in order to maintain a strict reservation order, that would mean dropping the production rate. That would threaten their financial health and as a shareholder, I would be pissed at them for doing that.

So, it's a bit of a damned if you do, damned if you don't situation. I feel for you, but understand that Tesla's got to make the best decisions to ensure it's own health as a company. I would be even more upset if they went under because of financial mismanagement. They don't have a lot of room for error on the financials, so if they have to play around with the production numbers a bit, so be it. I'll be happier when they're still around to service my car in 5 years than getting it a month earlier.

Well said. +1

 

[Jkam]

Walla, I understand the batching, parts shortages, and all that. The 2 things I still don't understand, and probably never will, is that they didn't tell me I was one of the 28 and that cars with my configuration went to owners with sequence numbers after mine. At this point, there is nothing more to do about it except hope. I hope the car is worth the money and the roller coaster they put me on.

I think it is fairly obvious at this point that Tesla's communication policy is basically to only report good news that is concrete. It seems pretty common for most people to hear nothing from Tesla, and then one day before the car is ready to be delivered, or even in some cases the same day the car is delivered, Tesla calls the customer. What other car company can get away with that? Furthermore GeorgeB has in my mind two famous quotes (see below).

... One of the things I hear a lot is, "We need more information, I know the news might not always be good news, but I'd rather get bad news and know what's going on vs not getting any news at all." My experience is that this is usually true…right up until someone receives bad news ...

GeorgeB

I know the last few months have been quite frustrating surrounding two issues: Model S delivery dates and the sequence of deliveries. Our communication on these two issues has been weak at best. There are reasons for this, but it will only sound like an excuse if I try to explain them, so I will not.

I can see where GeorgeB is coming from, and that probably works for the most part. However, being silent and keeping customers in the dark because you don't like giving bad news and you don't want to make excuses for "unique" situations like kroneal and AnOutsider is in my mind incorrect. It builds up resentment. It doesn't feel like you are being dealt with fairly. It feels like you are not a priorty. It is just poor form. And to be honest, it gives the impression that these are not unique cases, but more widespread than we possibly believe because if they were unique, you would probably address them. If anything Tesla should be going out of its way to make sure the extreme cases are being taken care of and they should devote more attention to those cases. But it appears the opposite which to me is mindboggling.

My family routinely would buy BMWs and Mercedes through the factory delivery program. We'd go to Germany, pick up the car at the factory, drive it around Europe for a couple of weeks and then ship them all the way to Hawaii. Sure there were some delays and snags along the way when we shipped the cars, but BMW and Mercedes were always willing to give us a status update. And sometimes there was disappointing news in the status updates, but once we understood the situation we were usually understanding of it. To me that's good service and the way I would want to be treated. Maybe that's what I expect having experienced it.

Hopefully things will get better once the new inside delivery team is in place, but that doesn't change anything for guys like kroneal, walla2 and AnOutsider. I know from my own experience. I think this policy of seemingly only reporting good news is bad for cases like the dreaded 28. And why even bring up the dreaded 28 if you are not going to address those people? I think Tesla has totally botched it, but from what I gather it doesn't look like it is going to change. It is unfortunate. I wish it were different.