Tesla Increases Prices for Existing 2008 Orders - Page 17

DDB · 01-22-2009, 05:48 PM

Quote:

Originally Posted by Tesla Dave

There was a hint that Tesla will bring some sort of compromise to the table at the town meeting. I'll believe it when I hear it.

What do you want to bet it's the right to put down the first deposits on Model S (with price subject to increase without notice or rationale). How anyone here can think it's actually a good thing to lose 400-odd customers is wrong in my opinion, regardless of how it may appear to speed up delivery and profitability. Alienating a customer is not a solid business model for a fledgling company.

And those government loans may very-well be tied to profitability--but on the backs of consumers should be a red flag to government that this isn't a loan that will be paid back.

James · 01-22-2009, 07:02 PM

Quote:

Originally Posted by TEG

Oh please! Don't even go there! A business plan of "get big loan, pay bonuses, go bankrupt" is unthinkable. I have to believe they would never even consider such a thing.

I agree. Elon Musk is a young guy at the age of 37. He doesn't want to be labeled as the next Delorean who flamed out building a sports car. Tesla Motors is trying to build a long term successful company.

Low interest government loans can help a lot. Also, Tesla has a lot of deals already with the state of California and the city of San Jose. So if anyone can make an electric Sedan feasible, it is Tesla Motors.

DDB · 01-22-2009, 08:03 PM

Quote:

Originally Posted by TEG

Oh please! Don't even go there! A business plan of "get big loan, pay bonuses, go bankrupt" is unthinkable. I have to believe they would never even consider such a thing.

TEG, you misconstrued what I wrote. EM would be at risk of fraud and other charges white collar crimes if the intent were to embezzle 400 m; let's be clear I didn't say that. But let's also be straight here--he doesn't give a rat's ass about the customers that canceled their orders within the last week, especially if the real motivation was a low interest loan. How the Big 3 were criticized for excactly what Tesla appears to be doing now, and by that I mean whatever it takes to secure the funds. And Tesla doesn't have a tenth of the issues with that the Big 3 have (e.g., the UAW, health care, pensions, bigger credit woes and the list goes on). I tend to go scortched earth when the little guy gets drilled and that's what I'm seeing with these price increases.

I vaguely remember that Tesla was supposed to be different; open. I'm a realist and know a business has to stay profitable to stay a going concern; wonder what Martin thinks?

TEG · 01-22-2009, 08:52 PM

Quote:

Originally Posted by DDB

...wonder what Martin thinks?

Well, he did say a bit here:

Quote:

Originally Posted by Martin

I think cutting features and options from cars for which customers put down large deposits months, even a year before delivery, is excruciatingly poor form and shows lack of appreciation for what these early customers mean to a young company. The deposits if these customers - both the cash itself and the faith the cash represents - is a big part of what generated all the excitement about Tesla.

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Quote:

Originally Posted by DDB

"...should be a red flag to government that this isn't a loan that will be paid back."

Quote:

Originally Posted by DDB

TEG, you misconstrued what I wrote.

What did I misconstrue? It sounded like you were suggesting that they want a loan they don't plan to pay back...

Yanquetino · 01-22-2009, 08:58 PM

I sure hope that one of you who attends the Town Hall meetings will have the cojones to ask the CEOooh point blank just how much his failed lawsuit against Fisker cost the company. I suspect that the customers whose locked-in prices he has arbitrarily unlocked would really like to know the answer.

TEG · 01-22-2009, 09:01 PM

Tesla Ordered To Pay Fisker $1.14 Million After Losing Trade Secrets Case

Yanquetino · 01-22-2009, 09:27 PM

Oh, my...! I would like to know what those customers think of that figure! Of course, I am no corporate accountant, but it seems to me that $1.14 million = a helluva lot of options!

vfx · 01-22-2009, 11:37 PM

DDB,

While my lawyering is limited to a TV and movie education, I was wondering when owners decide to sue for breach of contract (or if) won't a judge take into consideration, "precedence"? That is,200 owners got cars with HPCs, window tint, wheels, etc, does that not make those parts standard by definition?

dpeilow · 01-23-2009, 12:40 AM

I wondered when we would see this take on it: Electric car maker Tesla struggling to make a profit | TECHNOLOGY Blog | The Dallas Morning News

Good point in the comments:

Quote:

None of these companies are going to be in business to sell these cars if they do not get their Section 136 Dept. of Energy Loans within a week or so. That money was supposed to have been given out last year and it is being delayed by Bush hold-overs still in office. The PR lady there at DOE is the top Republican mouthpiece and a bunch of other people there are from oil companies. Call your Senator and tell them to tell DOE to release that money NOW!! They are making a mint off of the interest on the $25B they have in the bank. If they wait/delay any longer the EV industry in America will be killed off. The venture capital market is gone, maybe forever, this money is the ONLY way electric cars are going to come and the people who DON'T want electric cars know it.

DDB · 01-23-2009, 05:29 AM

Quote:

Originally Posted by TEG

Well, he did say a bit here:
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What did I misconstrue? It sounded like you were suggesting that they want a loan they don't plan to pay back...

I'm just a little careful about accusing Tesla management about taking the $400 m. and paying execs bonuses and pocketing it. If the Company does not survive, I agree, bankruptcy is the only option even with bridge or low interest loans. But my point is the early adopters got used for Tesla to achieve a certain status requiring it show profitability at any cost. But I do not think EM is going to defraud the Feds nor do I think he ever had any intent to. EM may be a lot of things, but I doubt he is a criminal.