Tesla Scaling Back Options and Incentives

GG57 on 13/09/2018 - 13:15

Extract from a marketing email I received:

“In order to streamline manufacturing, we will be reducing our car paint ordering options from seven to five colours on Thursday. Starting Friday, Metallic Silver and Obsidian Black Metallic will only be offered as off-menu, limited edition colours at AUD 2,800. They currently cost AUD 2,100.

As a reminder, our Referral Program benefit of free unlimited Supercharging for Model S and Model X will be expiring on Sunday, September 16, 2018. From that point on, orders placed with an eligible referral code will receive a AUD 150 Supercharging credit instead of unlimited.”

Is this because the brand is becoming more popular (I'm seeing more on the roads these days) or is it indicative of something else?

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Comments

  • [Deactivated] on 13/09/2018 - 13:23
    +5

    As they become more popular (and mainstream), fewer incentives are needed to prop up demand or push those sitting on the fence over the line.

    Fewer colours is juts operation efficiency, why maintain a process for paint colours that are uncommon?
    Still offer them for sale, but at an additional cost (more money and/or longer lead time).

    Nothing really out of the ordinary here.

  • Oz8argain on 13/09/2018 - 13:25

    cool!

  • HighAndDry on 13/09/2018 - 13:28

    No - if anything Tesla stocks took a hit recently when Musk took a hit of weed on some radio podcast I think.

    This seems like fairly standard adjustments as they realize how much certain options are costing them in terms of manufacturing. Or they've noticed higher demand than expected for options that cost them more, and so they're doing this to bring their revenue/expense models back into line.

    The supercharging thing I don't know - it sounds like that was the original planned end date for that benefit?

    • Kangal on 13/09/2018 - 14:34
      +1

      They were going to take a hit regardless.
      If you check their financial history, you will see its very volatile. Elon isn't lying when he says that it is getting Shorted.

      The free Supercharging was always a limited time offer, we just never knew "when". The surge in electricity prices in Australia definitely would have made an impact in this decision, otherwise, they could afford to keep offering it for a few extra years.

      You're right about the paint decision. However, its a stupid-ass decision. They should scrap it completely those colours. Or they should make it more expensive ($4,000 ?) to properly cover the costs associated. Ask Spackbace about the costs of extras for new cars, ones that are uncommon or special order for clients.

      Elon's biggest mistake was to approach the manufacturing side more idealically: Have people design cars, Have robots to build them.
      He would've benefited greatly if he could've had a wander through the production lines at Toyota (he could've seen the Best Practice, and how to improve upon it for his fleet), but he dived in almost blind. And he's shown a propensity for this attitude, like his Hyperloop project and his Scuba-submarine idea to help the Thai kids. The man's wise, but he's not intelligent… when it comes to subjects that are foreign to him.

      • HighAndDry on 13/09/2018 - 14:38
        +1

        He would've benefited greatly if he could've had a wander through the production lines at Toyota

        So much this. He's a… dreamer. Which has worked out well in general, but when it came to the idea that "No, don't worry, robots can build everything" that hasn't panned out as he'd probably thought it would.

      • Diji1 on 13/09/2018 - 16:45

        He would've benefited greatly if he could've had a wander through the production lines at Toyota (he could've seen the Best Practice, and how to improve upon it for his fleet), but he dived in almost blind

        How do you know he didn't do this?

  • Ryanek on 13/09/2018 - 13:32
    +1

    Tesla has really missed the boat. Practically all the major car brands are rolling out electric vehicles so there are now a lot more alternatives.

    They just took too long.

    • [Deactivated] on 13/09/2018 - 14:13

      I'm keeping an eye out on the Jag, Merc and VW.

      I wonder if any are safe for launching boats.

      • HighAndDry on 13/09/2018 - 14:38

        Oh. Oh whoa I hadn't thought about that - what happens if an electric car falls into water? Does everyone just get turned into instant hot pot or what?

        • [Deactivated] on 13/09/2018 - 14:44

          Tesla batteries are water tight, so can be fully submersed.

          Is the rest of the car watertight? Probably no more than any other.

        • HighAndDry on 13/09/2018 - 14:50

          @Drew22: Yeah but I assume not all the connections between the battery/batteries and the drive motors are water-proofed right? I don't know - it's just not something I've really considered as a potential negative in electric cars before.

        • [Deactivated] on 13/09/2018 - 15:29

          @HighAndDry:

          Neither are they in normal cars.

          There is a video of a Model S floating in storm water being driven like a boat.
          So seems alright.

        • HighAndDry on 13/09/2018 - 15:31

          @Drew22: Yes… but I assume the voltages in a normal car aren't as high as they are in electric cars. I'm honestly not trying to tank Tesla stock - I'm pretty high on Tesla and moreover I think they should be rewarded for basically revolutionizing an entire industry and kick it into the 21st century. I just don't know how the electrics in an electric car would do if submerged.

        • Kangal on 13/09/2018 - 16:57
          +1

          @HighAndDry:

          The electrics do fine, better than regular cars actually.
          Because efficiency is not a concern, Teslas were designed with safety first. With ICE cars they are very wasteful, so in the design process efficiency plays a major factor and safety gets relegated to third in importance.

          I've seen Teslas drive through waters, and seen them get revived from floods. It all seemed like a fluke.
          However, watching RichRebuilds as he dismantles the cars you can see how the design was in-practice. And that's with their older generation cars. I'm sure their next-generation luxury car (ie Not Model 3/Roadster 1.9) will evolve to fill some of the gaps in their manufacturing.

          And if not… well someone reputable like Ford, Volkswagen, or Toyota will pick up the mantle probably.

    • [Deactivated] on 13/09/2018 - 14:48

      Took too long to create the only new successful car company in America in over 100 years?

      Frankly, they still incredibly little if any competition.
      There is no shortage of demand, they are still ramping up the supply side.

      Fact. Tesla outsold the entire BMW lineup in America last month. The Model 3 alone outsold the entire BMW lineup.

  • dcep on 13/09/2018 - 13:35

    Tesla is in financial trouble

    • [Deactivated] on 13/09/2018 - 14:45

      Said everyone for the last 15 years.

  • Bid Sniper on 13/09/2018 - 14:32

    Musk said Paintshop is a bottleneck, so trying to be as efficient as possible. See most people order the other colors anyway, rarely silver or black anyway. So why waste time retooling. Not the first time they phased out a colour, Green on the S for example.

  • TheBilly on 14/09/2018 - 11:24

    This is going to have a huge impact on all those times I go out and buy a Tesla.

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