Tesla CEO Says NYT Article Caused Hundreds Of Cancellations, Also Talks About Future Demand (Video)

4 years ago by Electric CarsTV 13

Tesla CEO Elon Musk sat down and have a very honest and revealing interview with Bloomberg (to their credit).

Tesla CEO Says NYT Article Hurt Tesla To The Tune Of "Tens Of Millions"

Tesla CEO Says NYT Article Hurt Tesla To The Tune Of “Tens Of Millions”

Topics ranged from:

  • the New York Times article caused “a lot” of cancellations of Model S reservations, perhaps as much as “a few hundred”
  • market cap took a estimated hit of $100 million dollars
  • production estimates for 2013
  • demand for the Model S
  • the outlook for the company past 2013
  • impressions of Washington – “much less corrupt than people think it is”
  • on the lighter side: Musk says he never wore a tight black T-shirt when he met Tom DeLay, that he always wears a suit in Washington

Other tidbits of interest, Mr. Musk says that Tesla hopes to erase government loans in about 5 years (as opposed to the 10 year term of the loan), and that the $7,500 federal credit, if it were not available today, would probably cause Model S sales to be 10% – 20% less.

Bloomberg

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13 responses to "Tesla CEO Says NYT Article Caused Hundreds Of Cancellations, Also Talks About Future Demand (Video)"

  1. Voice of Reason says:

    I am calling BS on the cancellation. Let’s face it, the typical person purchasing the Model S is, educated, affluent, informed on the technology and fanatical when it comes to the Tesla brand and technology. A simple article, which even if true is not going to cause these early adopters to suddenly jump ship. It would take several legitimate tests from noted auto journalists to sway a Tesla reservation holder. And I suspect at that point only 10-20 would jump if that many. This is more of a duck and cover for investment banker questions if Q1 falters. If all goes well, Elon will claim it was in spite of the negative publicity. He is positioning for Q1 conference call. Nothing more.

    1. evnow says:

      Let me see – we should trust your 10-20 over Musk’s number because
      – You have inside info
      – You are a psychic

      Anything else ?

      1. Independent Observer says:

        No I am not psychic or nor have inside info. I have brushed elbows with various Tesla owners and reservation holders at Auto Shows. They are smart, business savvy, technology literate, and can easily decipher fact from fiction. I guarantee the people that hold reservations right now are not going to dump their reservation over a one man’s report. They are going to lump it into two categories, either the guy has an ax to grind, so the report is bogus. Or the guys does not understand new technology and how to work with it to maximize performance. Certainly not “a few hundred” of these people are dumping Tesla. You apparently do not give the Tesla enthusiast enough credit for making intelligent decisions. I on the other hand understand that any CEO is looking for a parachute in case the next quarters numbers look bad.

        1. evnow says:

          Anecdotal “evidence” based on auto shows ? C’mmon.

          Thats not the kind who would jump – the people who jump are the kind who reserved in the first place because of positive reviews in the press.

          A WSJ “pundit” had written that Romney would win Florida because she saw more Romney yard signs there. Anecdotal evidence is poor compared to actual data.

  2. scottf200 says:

    Really like the remarks at about 2:00 where he indicated that when cars are delivered that they then see an increase in the interest/sales from the location where those cars were delivered. Volt owners dealing with a lot of negative press assisted in sales as well from numerious word of mouth discussions and personal demos.

  3. GeorgeS says:

    Looks like sequestration is going to be around 5-9% in general.

    Do you suppose that they would just cut 9 % of the EV tax credit.??

  4. GeorgeS says:

    Elon needs to fight back.

    So if he has to use the same lie and cheat tactics that the NYT used then that’s OK with me.

    1. Mark H says:

      I’m with ya George, and I think that is exactly what is going on.

    2. taser54 says:

      Nope. Musk lying will result in more cancellations and bring into question his financial statements.

  5. Bill Howland says:

    My figures on the “sequestration” is 1/4 of 1 %. So its being overhyped.

    Mr. Musk is saying exactly what he believes he must say..
    If I borrowed $462 million, i’d have to say everyone is honest also.

    There is a very politically incorrected Elephant in the Room that everyone wants to forget. But the ‘hundreds of cancellations’ I’d wager take this elephant into account.

    1. Open-Mind says:

      Even with sequestration, federal spending is increasing. $3.553 trillion in 2013 vs. $3.538 trillion in 2012. Both up about 50% from the Bush years. All the sky-is-falling BS is just blame-game politics, and it’s coming from both parties.

  6. MrEnergyCzar says:

    Well, the fake Volt fire hype hurt Volt sales so who knows….

    MrEnergyCzar

    1. Bill Howland says:

      The volt fire was over-hyped , the “S” problem was underhyped or not mentioned at all, aka deflected.