Myth - Everyone hates dealers and wants to buy online. Reality - Catalogue buying has been around for more than 100 years. Currently, online auto buying is about 20%.
Myth - Everyone wants to buy from a company like Tesla. Reality - Discounting began years and years ago when a potential auto customer said, "I won't pay full price for the product". The representative said, "What will you pay?". That morphed into full-fledged discounting. Sticker price dropped to Invoice. Invoice dropped to invoice PLUS holdback. Never in history has the buying public anywhere jumped at the chance to buy a vehicle at full price.
Selling vehicles at full price would take an unrealistic change in pricing. First, which auto company chooses to be the highest priced? How will the scale of picking be established? Actually, I thought that was established years ago with an MSRP label? I agree dealers, because of discounting, created addendums in an effort to create additional gross. Personally, I never agreed with it. That said, if every auto company in the world decided to charge one price, and one price only, all it would take is just one dealer, or one company to discount. And the consumer who's been conditioned of generations to negotiate pricing? How does the dynamic change? Or is the answer as simplistic as merely changing the pricing and demanding full sticker?
Once they get past pricing, what about how trade-ins are addressed? What IS a fair price? And monthly payments? What happens when the first customer says the payment is $50 more a month than they want to pay? What about negative equity? What happens when a customer is $3,000 upside down on their lease? how does the $3,000, or more, get rolled over? WHO pays it? Or does the dealer just eat it?
The complexities are almost endless. The answers, a dearth of them. issue like these have been discussed numerous times over the years within auto companies. When I was with Mercedes, I sat in on just such meetings regarding Mercedes-Benz of Manhattan, a company-owned dealership, one of 2 in the US. The other was Mercedes- Benz of Beverley Hills. Consensus couldn't be reached because there was always "what ifs?" left on the table. Believe me, it always came down to sacrifice, affordability, transparency, and payment. While a possible solution sounded good, there was never a "Got it!" moment.
I'd just LOVE to read from someone here who has all those answers. I sure don't.
"Tesla’s Model S has fewer than 20 moving parts, compared with almost 1,500 moving parts in an IC-engine car. This means that there are fewer steps in the assembly process, fewer suppliers to deal with, and lower inventory of components and parts"
Tesla is disrupting the product as well as the factory that makes the product—something that incumbent automakers will find difficult to do.
There have been countless posts as well as staggering comments related to GM and Ford on this board. WHY don't some accept the idea that other than Tesla being a US manufacturer, there is ZERO connection to those two companies? Tesla makes a luxury vehicle. Therefore, if comparisons are to be made, it should be about brands and model, plus operations of LUXURY VEHICLES! Anything else is just noise, completely pointless. I've said it numerous times. Apparently some don't get the message.
Wow! Everybody likes Musk and his processes. Boeing and Airbus have just announced that from now on they will adopt the Musk's Manufacturing Process (MMP) to develop new airplanes. No more prototypes or prototyping, it's just a waste of time. From now on all ideas for new planes will be immediately put into production, with beta testing on consumers to follow withing 24 hours. NASA and Nuclear Weapons manufacturers are also expected to switch to the MMP in a few weeks. Note that the MMP process has been successfully used by North Korea in nuclear bombs development, as well as in development of ballistic delivery vehicles, one of which has not exploded at launch.
I hear people trying to suggest Tesla is making "disruptive technology" similar to something like "the Model T" -- this is NOT an accurate comparison. The Model T was replacing the HORSE AND BUGGY. An electric car doesn't really do anything better than an ICE car; while EVs can be nice, they are nothing like the "eliminating-the-horse" benefit people experienced when buying a Model T.
heard a rumor ===== Tesla's battery swapping system never worked
They promised full nationwide roll out at every charging station and they failed.
Oh, my! 22 GOP senators want US to pull out of Paris climate accord There go them polar bears, penguins, and Musk subsidies.
WHat does FCEL,GPRO and TSLA have in common ? Well GOPRO was arounf 90.00 near the HIGH now 8.00 and change, FCEL CRASHED HARD at .91 CENTS despite many analysts PUMPING Simalar to TSLAS night after night pumping. Note look again at the pumping everytime this stock gets a iitke down trend the pumping comes in usuall on CNBC. EV's been aroud for 20 years and just DO NOT SELL that great there is a reason and its EV's r NOT practiale4 last thing u want to do after a hards day of work is plug your cord charger everynight so I can get to work the next IMO TSLA will go the way of FCEL . TSLA does not make a DIME
ENDLESS PUMPING about EV's LOOK OUT fast money pumping tryingo hold OIL down
Closing at the high today. Another great day for the TSLA longs!!
To those who foolishly compare Tesla to Amazon and Apple, ask yourselves when was the last time Amazon and Apple had to deal with the UAW or any Union? Unions are one of the key reasons why automakers have low margins and take at low multiples. Sorry folks, but Tesla is an automaker, and it makes no sense to value it as a tech company.
Wow! "A team of researchers from the Technical University of Berlin spoke to New Scientist about their plasma jet fuel engine that can propel a plane into the air, to the edge of space, using nothing but electricity and air." Musk, this might be time to buy some more of them German Geniuses. If you power Model S with a plasma engine, it can go from 0 to 60 in about 1 picosecond. You would need a GigaBattery, though.
I like this pope. He is more like Jesus than some other popes.
"Francis also gave Trump ... a copy of his 2015 encyclical letter on the need to protect the environment from the effects of climate change.
Pope asks Trump to be peacemaker, gives him environmental letter
Pope Francis urged U.S. President Donald Trump to be a peacemaker at their first meeting on Wednesday after they exchanged sharp words last year, and Trump promised he would not forget the pontiff's message.
Overall a great month for a Tesla!! Give a thumbs up if you believe next week the 52 week high will be re-claimed
Tesla’s solar roof tiles are already sold out ‘well into 2018’
After first unveiling the product last year, Tesla started taking orders with a $1,000 deposit for the first versions of its solar roof tiles earlier this month. Electrek has learned that demand ex…
Oh, my! Newsflash: A new report slams Tesla working conditions, claims employees have suffered twice as many serious injuries. One of the dying workers stated: 'I only regret, that I have but one life to lose for Tesla and Mr. Musk, for $5.50 per hour.'
A theoretical question for Tesla fans and tunneling under LA enthusiasts: How would you like to be traveling at 150 mph 150 yards below the ground in a MuskTunnel when a 7.8 earthquake hits? How about 9.0 ?
Anytime the stock drops even a little bit this board becomes unreadable with dip ishts celebrating like they invented cocaine. Up 2400% down 2% time for shorts to have a parade!
"This means that there are fewer steps in the assembly process, fewer suppliers to deal with, and lower inventory of components and parts"
And yet, amazingly TSLA still can't manage to keep a production promise or make profit.
Looks like fewer parts, fewer assembly steps, fewer suppliers, fewer inventory,......... translates into fewer profits for Tesla.
Which reminds me,.............. who was it that told you Musk cult clowns, like the Lone Loser, that Tesla would lose over $250 million last qtr?
The many failures of Elon Musk, captured in one giant infographic
The Tesla CEO has forged past many, many setbacks throughout the years.
Can you imagine threatening someone because they dissagree with you about a stock they don't own??? Pete has threatened no less than a dozen Tesla supporters on this board. He has threatened them with FBI trouble he has threatened to sue them. Coach why don't you get a life! Your current one is pathetic!