Tesla Model 3 Anti-Sell Ends – Performance Model Pushed, Test Drives Start

JUL 10 2018 BY STEVEN LOVEDAY 45

Tesla has been anti-selling the Model 3 ever since production began, but that’s not the case moving forward.

Early reports suggested that Tesla was trying to convince people to leave their Model 3 dreams behind and choose the automaker’s pricier and more tried-and-true siblings. Being that Model 3 production was slow to start and deliveries were few and far between, it made sense for Tesla to at least attempt to get people in a Model S or Model X.

Tesla CEO Elon Musk admitted that the automaker was, in fact, doing all it could to “not sell” the car. Salespeople were even reaching out to reservation holders to try to convince them to buy a Model S instead. Obviously, people could get in a Tesla vehicle much sooner if they opted for a Model S or X. Then, potentially, in a few years, they could trade it in and opt for a Model 3. Also, being a Tesla owner meant that moving up in the Model 3 reservation queue.

Once Model 3 production began to ramp up more significantly, we stopped hearing much about this anti-sell situation. Now, according to Electrek, Tesla has actually started to push the pricier Model 3 Performance variant. The automaker continues to add Model 3 vehicles to multiple showrooms, has finally started offering test drives, and is reportedly providing incentives to its sales team for selling the Performance version. The story claims that employees are earning a $300 commission for every “P” version sold, however, we have no way of validating this information and nothing has come from Tesla officially.

Nonetheless, this makes perfect sense since the Model 3 Performance costs more and likely generates more revenue for the automaker. It follows the same reasoning that Musk has spoken of when talking about why the base Model 3 is not yet available. While Tesla works to move toward profitability, pushing higher margin vehicles will achieve that goal sooner. This is exactly why the automaker wanted people to buy the more expensive Model S and X vehicles early on, rather than waiting for a Model 3.

The fact that so many people reserved the Model 3 “sight unseen” is fascinating. Moreover, the car wasn’t even in showrooms for months, and once it was, you couldn’t drive it. Some people were waiting to see one in person, while others insisted that they must actually test drive the car before placing an order. According to Mercury News, four Bay Area stores began offering test drives to reservation holders last week. Over the weekend, Tesla added more locations with test-drive availability.

The automaker hasn’t commented on whether or not people without reservations will be able to test drive the car. Now that a reservation isn’t required, it only makes sense that eventually anyone should be able to take the Model 3 for a spin, as long as there’s a location in your area that offers the test drives or you’re willing to travel.

Source: Electrek, Mercury News

Categories: Tesla

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45 Comments on "Tesla Model 3 Anti-Sell Ends – Performance Model Pushed, Test Drives Start"

newest oldest most voted
Clive

It will be nice to actually drive one.

Maybe now I can get excited.

MTN Ranger

Tesla’s definitely making good profit on the $81,000k loaded Model P3D. There’s probably hundreds of thousands with reservations waiting for the base model though. Hopefully those waiting start getting them in 2019.

Viking79

I imagine they will start shipping end of Q4 or beginning of Q1. They claim 6-9 months, no reason to suspect otherwise. Question is if they offer premium interior first with Base, as it would be a lot easier. The interior is a bigger production change than the smaller battery. Alternatively, they offer basic interior on Model 3 LR, first then offer Base with both.

Magnus H

Getting the customer through the (virtual) door by offering a cheap car, and then try to sell a more expensive car when the cheap car is not available, is not “anti-selling”. It’s “bait and switch” or “upselling”, a classic sales trick. Just because Tesla does it too, there’s no reason to rename the method.

Nix

Do you even know the legal definition of “bait and switch”? It sounds like you don’t.

Will

It’s upsell. Bait and switch is totally different

Nix

+1

Magnus H

They don’t have the product they advertised to the reservation holders, when they payed the 1K.

Magnus H

Do you even know what jurisdiction I’m talking about? Tesla makes business in many countries, you know.

But it was the colloquial definition, of offering a cheap product *and taking reservations for it*, and then selling a much more expensive car, I was referring to. Call it what you want, it’s the same sales trick. Maybe not illegal in your country, buy that I haven’t claimed either.

Viking79

Looking on Tesla’s website, they offer a Model 3 Long Range with a price of $49,000. I don’t see any bait and switch here.

CCIE

Google bait and switch. Definition is pretty clear: “the action (generally illegal) of advertising goods that are an apparent bargain, with the intention of substituting inferior or more expensive goods”

The bait is a $35k car (which doesn’t exist). The switch is any car besides that one.

In this case, Tesla will keep it legal by eventually shipping a token number of $35k M3s. But, it’s still bait and switch.

Nix

Where has Tesla ever advertised that you could go into a location and actually purchase a Model 3 standard range? The opposite is actually true. Tesla has gone out of their way to make it absolutely clear that a reservation is NOT an offer for purchase, stating that a reservation “does not constitute the purchase or order of a vehicle. ”

https://www.tesla.com/sites/default/files/pdfs/model_3_reservation_agreement.pdf

It is a bright line under the law that there simply CANNOT be an unlawful bait and switch when a product or service clearly is not offered for purchase. By definition there is no “Bait” since there is no offer for purchase. Sorry you don’t understand the law.

Clive

Just because you believe all that nonsense , doesn’t make it so ‼️

Nix

Where has Tesla ever advertised that you could go into a location and actually purchase a Model 3 standard range? The opposite is actually true. Tesla has gone out of their way to make it absolutely clear that a reservation is NOT an offer for purchase, stating that a reservation “does not constitute the purchase or order of a vehicle. ”

It is a bright line under the law that there simply CANNOT be an unlawful bait and switch when a product or service clearly is not offered for purchase. By definition there is no “Bait” since there is no offer for purchase. Sorry you don’t understand the law.

Terawatt

With the hefty price tag for the performance model, it wouldn’t be surprising if it is the most profitable vehicle Tesla can sell – not merely the highest margin. If so, and demand is there, it makes sense to make and deliver as many of those as possible, as fast as possible.

For the rest of us however it is more interesting to see how the ramp up goes. About 2000/week average in June. We know 5000/week is not going to be sustained. But what will they manage? 2500? 3000? 3500? It ought to at least best the weekly average for June, so it is at least still ramping…!

God/Bacardi

I’m sure the S since its been around longer than the X and has normal doors in P100D trim is the most profitable vehicle followed by the X…

Shaun

Bloomberg seems to think 5k was maintained. Wouldn’t be surprising if they did. Reuters was reporting they weren’t anywhere near the rate needed for 5k by mid-week during the big push, which means the rate for the last few days of the week was way above the daily rate for 5k.

Steven

They are producing 7,000 a week now, hence why everyone can buy them.

Nix

It should be noted that Bloomberg themselves state that their mathematical model is not designed to be accurate down to a single week. It is designed to be accurate over a quarter, with weekly bumps and dips averaging out over time.

They talked about this extensively when they explained why they didn’t manually correct the numbers even when they knew Tesla had shut down the line for maintenance and Tesla would not have been able to build the number of vehicles that their mathematical model projected.

arne-nl

Bloomberg model 3 tracker is above 5k/week. I too was expecting the rate to decline after the massive end-of-quarter push for 5k/week. So that is surprising.

antrik

The Bloomberg tracker is not reliable on a week-by-week basis, as they point out themselves… We should get a much better idea of the actual sustained rate a few weeks from now.

Seven Electrics
pjwood1

We’ve gone from ~450k back log, to sales open for everybody, in months. Supply and Demand are a big vortex, right now.

Fancy orders get you to the front of the line, but also to play out will be the conversion rate of the remaining ~400k. On the one hand, they capture highest margins from big batches of >$49k cars, assuming as many deliveries as they can. Maybe ~100k Model 3 in second half? On the other, opening orders means final production plans are already taking shape. They’ll soon know when they have to produce <$49k cars. How many get delivered before 2019 is the big question.

koz

…to the back of the fancy line

/you’re welcome

antrik

Where did you get 2000/week average for June? The average for *all* of Q2 was >2000/week.

bro1999

And the base model 3? Ehhhh…..TBD

John

Can I get a Bolt, though, bro1999?? Can I? Can I? What about a Bolt??

Will

Yes you can there’s 3k in dealers inventorying

John

While I was jesting with bro1999 (skin thickness test), the Bolt is a really great car. I looked hard at one and unfortunately, it was the dealer (GASP!) that broke the deal. Tried to fleece me and thank God he did, because I ended up with a gently used Model S and can’t thank GM enough for encouraging me to get a better product.

Pushmi-Pullyu

“…the Bolt is a really great car.”

Then why does bro1999 spend so much time and effort expressing his anger and disappointment over getting a Bolt EV rather than a Model 3?

Not saying you’re wrong about the Bolt EV being a good car, but clearly he doesn’t agree!

John

It’s “The Lady Doth Protest Too Much” complex I think..

Shaun

Its a good thing too. Might eat into the already dismal sales figures of the Bolt LOL.

pjwood1

Not offering test drives is part of the Lowest Common Denominator’ization of cars.

Still sad Tesla did this, and hope folks try familiarizing when stationary, and then operating functions like cruise, media and climate. If fine, good for you. If not, let tesla know and don’t be stuck in a car delivered you before you had a chance to find out.

antrik

Nobody was forced to order immediately, rather than waiting until test drives are available.

Pushmi-Pullyu

“Not offering test drives is part of the Lowest Common Denominator’ization of cars.”

Wut? No, it was part of Tesla anti-selling the Model 3. Now that Tesla is no longer anti-selling the model, test drives are becoming more available.

Did you even bother to read the article before commenting?

Mister G

Trump supporters don’t read LOL CONNECT THE DOTS ON CLEAN AIR WAKE UP FOLKS thanks co2.earth

Will

Duh, it’s called upsell. Every dealers does it, Tesla is no different then them. People goes in a dealer for hatchback comes out with with a SUV

Steven

Please some one loan me like $50,000 and let me pay you back $400 a month for like 10 years. I’ll let you drive my Tesla whenever you want.

ffbj

So I see 7electrics was right about the $300 commission, though it’s for the entire sales team, potato potatoe.
So he was right about that one.

Clive

Good.

Now maybe he can afford 8 Electrics… 🚘

Nix

Thanks for coming back and correcting the record.

Pushmi-Pullyu

It was entirely predictable that as TM3 production ramped up to decent numbers, Tesla would gradually transition from anti-selling to actively selling the Model 3. It’s good to see that process is now well along!

Go Tesla!

Mister G

GO TESLA GO
GO BYTON GO

Scott G

so here is my question. I ordered my Long Range D model 3 (non Performance) a couple days after being able to and had a reservation in the day it opened. My delivery est is Sep-Nov. If a non-reservation holder orders the performance model today, do they get a car before me?

Mister G

No you are first based on having a reservation. GO TESLA GO DESTROY DIRTY GAS GUZZLERS