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  • nonameplease2000 nonameplease2000 Dec 30, 2010 12:34 PM Flag

    Bloomberg, TSLA Profitable at lower sales level than competition

    That article is trying to excuse/justify/put a good face/spin(enough?:) the projection of very low sales numbers.

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    • I strongly disagree about the sales interest. I've already had several people inquire about purchasing an electric car from Tesla.

    • Gentlemen, I find it very, very difficult to digest the Tesla comments. What I don't have any problem understanding is the abject stupidity of the comment. While I can certainly GET the concept of selling few and making more money, one must first begin with the premise that production costs are significantly lower, percentage-wise, than any competitor. Since Tesla has yet to hire the first plant employee, I doubt seriously they have any idea of what true S, G, and A costs will be! If they have a target number, I imagine the UAW will have a lot to say about that!

      You know, I doubt Tesla ever thought they'd have any problems with the Roadster. Yet, they did/do. Same with the 4 dr. Perhaps Tesla has a concept of what it forecasts to gross with every sale. But unless everything is sold at sticker with no discounts and finance rates stay the same, AND money factors in leasing stay the same, AND the risidual values of the 4dr stay the same, this is all a crap shoot. One glitch in any area and the plans go out the door. Actually, I think the major portion of 4dr deposits will evaporate prior to the 4dr intro. That means Tesla must somehow overcome price objections with some sort of discounting. Keeping in mind the fact Tesla has zero plans to be involved in trade-ins, I see no safe harbor for them if 4dr pricing is higher than anticipated, or any of the other concerns I listed come into play.

      In sum, this is too simplistic. It's nothing more than a "perfect world" ideology. This is why Tesla shot itself in the foot with the Roadster and then spun this ridiculous notion that they really weren't in it to make money. Rather, it was all a test. How absurd! Moreover, it's yet another sign of the total arrogance these folks have ingrained within their organization. I guess they haven't figured out yet that consumers, even the well-healed, aren't as stupid as Tesla thinks! Honestly, Tesla screwed up the retail concept for themselves early in the game. This latest blunder is yet another nail in their coffin. When all you have is the retail price with absolutely no safety cushion, ie, trades, finance, leasing, and service warranty, you have little to sell. Think they're going to sell 1,600+ plus 4drs a month to a panting public?? Let's see? Hmmmmm? 25 locations world-wide translates into the absolute NEED to sell 67 4drs PER LOCATION, every single month!! Sounds easy, huh? Well, I can promise you not a single Mercedes or BMW dealership in the WORLD sells anything close to 66 300 class or 5 series a month. But hey, Tesla's the new APPLE! It's easy! LOL! LOL!

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