Tesla Puts End-Of Year Sales Push Into Max Gear

Tesla Model 3

DEC 15 2018 BY ERIC LOVEDAY 45

Let’s cranks these deliveries up to 11.

It’s an all-out push to deliver as many Teslas as possible for the cheapest final cost (provided you qualify for the full tax credit) as the year and quarter come to a close. This mainly applies to buyers of the Tesla Model 3, but certainly, there are some Model S and Model X in the mix too.

Musk just stated the following:

Tesla is releasing all vehicles for sale today where original customer can’t take delivery before end of year. Reminder to US buyers that $7500 tax credit drops in half in 2 weeks.

Order online or visit stores.

So, if you really desire to get that full credit, then act now.

Tweet from Elon Musk embedded directly below:

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45 Comments on "Tesla Puts End-Of Year Sales Push Into Max Gear"

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Good move…

The difference between Tesla and GM is remarkable. One company is bending over backwards so that their customers could take advantage of the tax credit while the sits on their butt and do nothing.

It’s like watching Kodak all over again.

Tesla is indeed doing everything it can to benefit the customer. Godspeed to them.

One has billions of dollars in the bank and the other would like to have billions. The companies are just at different points in their growth.

GM has a worse debt ratio than Tesla.

That because GM owns plants all over the would and has decades worth of pensions? When Tesla been around long enough for someone to retire I guess it could be an issue with them as well assuming they have pensions.

That’s is interesting. In the modern world, in the US, businesses don’t have pensions anymore. That just isn’t how it is done. You have 401k investments. Defined benefit pensions are a thing of government and some old corporations where unions have them by the ….

I would be absolutely shocked (and appalled) if Tesla had a defined benefit pension.

Pensions are always underfunded and huge future liability. They also don’t survive bankruptcy necessarily.

The decision to not properly fund the pension is made at the top. Pensions have not always been in such dire straights. This is a more recent phenomenon.

There is a decision made to under-fund the pension to boost quarterly profits. Probably some marginal difference, lets guess a penny a share, would have made many of these pensions solvent. The sad thing is that when the company declares bankruptcy, the cost of all those under-funded pension liabilities just gets pushed onto the taxpayer, who never got even a fraction of that penny.

Mike you mean like California right because companies have figured out that pensions end up killing the companies that provide them. To bad they can’t just impose taxes and make you pay for them like the states do.

Maybe the companies can do like California and just not put the unfunded pensions on their balance sheet anymore. I mean when you have around 1 TRILLION in unfunded pensions and increasing you can’t just raise taxes by a few cents and fund them.

They’re doing great with tax credit maximization, but where’s that base Model 3?

Do Not Read Between The Lines

Turning into LRs and MRs.

If it isn’t out by mid year 2019, then complain.

Yep, until then, just give this particular axe a break from the grind.

I think Musk said the base was 5 to 6 months out around 2 weeks ago, so April or May look for the base to start showing up.

Which is it? GM should sell more Bolts, or sell less? One minute people say GM is holding back and the next they say they’re not holding back enough. If you want a Bolt, go buy a Bolt. You’re right, the difference is pretty stark. One company made an honest attempt to bring a functional, livable BEV to ordinary citizens and the other only services rich people. You may also be right that it is foolish for GM to have tried to bring BEVs down market and therefor pulled a “Kodak” moment. Maybe they should have abandoned their bread and butter customers for loftier clientele, maybe they have royally screwed up, but I’m glad they did. I have have been loving my Bolt for the last year and a half and it was within reach and I did buy it. Tesla hasn’t done squat for me. I am not on their radar. I have no idea if they ever will build a car for me. Thank you GM for taking a chance and offering me the affordable opportunity to drive all electric. Tesla… whatever. Your car in space videos were kind of funny, but what have you done for me… Read more »

Without the existence of Tesla it’s very likely that there would never have been a Chevrolet Bolt EV.

Think about that.

And by consequence…. very likely no Kona, Niro, 2019 long-range LEAF, e-Tron, i-Pace, etc.

” One company made an honest attempt to bring a functional, livable BEV to ordinary citizens and the other only services rich people”

It’s simple Dav8or: who sells the most cars serves the most people. Now go and compare Bolt sales vs Model 3 sales.

This is not to knock on the Bolt, it really is an honest attempt, albeit a bit half-hearted as far as marketing goes.

The reality is that if GM had decided to make their EV look more the a Corvette or other sexy piece of automotive engineering than Mork’s Egg from Mork and Mindy, all would be forgiven. LOL

Even better, if they had made an all-electric Volt. That was a damned fine car. It would have needed a few tweaks, but the style was vastly better than the ugly Bolt.

The Bolt EV was designed at GMs Korea design center. If you are ever in Korea you will see that compact hatchbacks are extremely plentiful. It really doesn’t seem targeted for US market, even though it is mostly sold here. It is like there was dysfunctional design and marketing efforts.

Koreans like sedan and SUV. They don’t buy hatchbacks unless it’s cheap. Go look at the monthly sales report.

The Bolt is more for the European market.

Model3 Owned- Niro EV TBD -Past-500e and Spark EV,

Tried taking a look at the site. No mention of delivery time or availability —wonder how the commit would be in rural Alabama vs say here in San Diego.

Yeah, I thought that was odd. They should show inventory and let you select from what can get to you before EOY.

There are a lot of things a website can do, but negotiating a guaranteed delivery date ain’t one of them.

What negotiation is required? It’s simply first come, first served, but it’s a race to submitting the order, not a race to be first in the queue. No negotiation is involved.

If Tesla knows when they can deliver what cars where and when, and the customer knows where and when they can take delivery, a website seems a pretty good way of matching up the capability and the desire — whereas if either party doesn’t know their side of it, it’s difficult to understand how it might help to communicate via a telephone or face to face rather than through a website.

Not to mention the difficulties of keeping track of what inventory is actually left in real time if orders aren’t punched into a system shared by all the Tesla salespeople. Letting customers see for themselves what they can buy is a fairly robustly tested concept, and it works. And letting them enter their orders themselves is a boon!

At this point it probably depends of what’s available in your area; call your local Tesla store.

My co-worker just bought a Model 3 from existing inventory. He got it within 3 day. You place and order by putting in your configuration, and if there’s a match it’s delivered quickly. For Model 3s inventory consists of Long Range vehicles.

The Mid-Ranges are the delivery problem. I ordered mine 10/18. Today I received an Email requesting which days I’d prefer or prefer-not to have my delivery.
My range was between 12/23 and 12/31.

That’s nothing. My 3 3-hugger friends bought 3 3s each within 3 minutes and got all 3×3 3s before 3/3.

Lame, I know. Three tree 3.

Christmas party?

Spiked eggnog.

Live individual inventory control on a website is actually a fairly difficult problem. The instant you display results to a browser, the results can already be out of date. Especially when trying to also coordinate with live on location sales. The problem is that there is no way to keep what you see on a webpage ALWAYS up to date on an individual VIN basis, when people are test driving cars at the same time people are purchasing cars on the internet.

Places like Ticket Master handle stuff like this by putting a clock on your shopping cart the instant they show you tickets, and they only guarantee you can get those tickets until the clock expires. That’s not going to work with people test driving cars.

Best to just go in and get what you want. Sometimes actually talking to people in real life is the best solution……. (I know, the horror! The Horror!)

Model3 Owned- Niro EV TBD -Past-500e and Spark EV,

Most cars in inventory won’t be on the lot (stores don’t have those!) so the testers aren’t the inventory — the inventory should be relatively robust whether online or at the store — they simply don’t show it here and with the push, would think they should have a grab and reserve/hold for 10minutes while checkout fairly easy as mentioned above a la ticketmaster

I guess I’m spoiled having visited a Delivery Center that doubles as a Store, and actually seeing rows of TM3’s.

The web side isn’t the hard part of the equation. The problem is telling somebody starting a test drive that they have 10 minutes to complete their test drive and finalize their order…..

Eh… it isn’t a tricky problem at all — it’s a problem solved in computer science many many decades ago, and it doesn’t have anything specifically to do with web sites. It’s not possible to show truly live information, in the strict sense, because there’s no way to transmit it faster than light. You may think that’s a problem, but it’s certainly not “hard” because there’s only one solution — pessimistic locking. That means to present something (in this case an inventory item) to a user, that thing is “checked out” exclusively to that user, like a user borrowing a book at the library. Nobody else can see the item until she returns it (or buys the book!). This is little used, and never for this use case, because you’ll much rather show someone a thing and say “oops, sorry, is gone now” if they try to buy it than miss out on sales by not showing off your stuff. So what everybody does instead is use optimistic locking, in which you basically just version the item and always update the version when modifying it in storage (a database in this case). The user sees version 1 of an item,… Read more »

I guess I have to repeat myself.

The web side isn’t the hard part of the equation. The problem is telling somebody starting a test drive that they have 10 minutes to complete their test drive and finalize their order…..

Starting a test drive is not the same as starting an order. Take your time with the test drive, or not, if you want to. When you get back you can start your order from inventory like everyone else.

Is that really true? I have a hard time believing either the cars are in that high demand, or that Tesla would use such strong arm tactics to pressure a customer to buy. I know if a car dealer did that to me I would walk away and never go back to that dealership.

It’s not. It’s perceived scarcity. An age old sales tactic.

If you divide the sales numbers down, they are selling a car every 2 or 3 minutes across the country. You don’t need any complex locking mechanism to arbitrate that kind of demand. The number of unclaimed cars is probably a small fraction of that.

It has nothing to do with scarcity or sales tactics. It is purely a SALES LOGISTICS problem in the final two weeks of the year, where they only have two weeks to connect buyers with cars before the ball drops on midnight.

Tesla has been VERY upfront about everything they’ve been doing to scale out their sales side now that production has been ramping up.

Stop trying to make an issue out of nothing. Why is it that I’m not surprised that people would come here and complain about a company simply trying to sell as many EV’s as they possibly can before the end of the year?

I can’t believe I’m having to explain this.

No, they ARE NOT doing that, which is exactly why creating a brand new website for listing specific VIN’s just for the last 2 weeks of the year and trying to sync it with live sales IS NOT happening.

“It’s not righteous indignation that makes me complain, it’s the fact that I always have to explain” Van Morrison. Keep preachin Nix!

They have called me multiple times telling me that “this is your last chance”. What irks me is the fact that I am now being “punished” by paying an additional $1000 because I did not order immediately when Elon randomly decided one afternoon to release a mid-range M3. He stated the price at the original $45,000 and then seemingly impulsively raised it to $46,000.

I then get told that “you never know when the price will go up so buy now”. To me this just reminds me of high-pressure sales.

Pressure me into a sale and you will loose the sale!!!

Also, $2500.00 extra for Red??? COME ON NOW!!??!

How many “can’t take delivery” folks actually rejected delivery due to car condition or cancelled because of the customer experience? If that’s not it then what exactly is preventing people who already ordered from actually taking delivery? Does Tesla not have the colors/configurations that customers want? Really sounds like customers being lost however you go about explaining this odd “can’t take delivery” condition that so many would-be owners are apparently in.

Rejects upon delivery are rare. Especially in states like Texas where the buyer already paid in full!

The “release the hounds” tweet is mostly a come on. In late Q3 Tesla did release a bunch of assigned VINs that couldn’t make it to the east coast or midwest by 9/30. They re-assigned these cars to CA buyers or sold them in last minute tent sales. They’ve taken steps to avoid that this quarter, improving their shipping logistics and pre-staging plenty of inventory around the country. If you “order” a Model 3 today they will match you to this local inventory, or they will call you with a very close match, e.g. 19″ wheels vs 18″, and make a deal.