Tesla Increases Prices for Existing 2008 Orders - Page 5

James · 01-18-2009, 07:21 AM

I think the price increase is about Tesla becoming cash flow positive. They need to make a little more per unit off of the 2008 models that are being delivered right now. They have about 390 units that are being affected by this.

They are on the verge of producing 20 per week and they need to capture this revenue and generate some profit.

Tesla Motors likely is close to breakeven right now, but not quite there.

It looks bad to do this to owners that have locked in their options. But Tesla might really need that extra $7,000 per vehicle.

Selling a few hundred cars where they lose money on every unit is a lousy formula for a long term future. Just look at GM, Ford and Chrysler.

That having been said, I am not happy about giving more money to Tesla. But also I have not locked in my options yet and I have nothing to gripe about.

The owners could just take ownership of a base model Roadster and a mobile recharging unit (110 V 15 A) that will recharge at 6 or 7 miles per hour. That would still be the original price.

We can always ask for a refund if we are really that upset.
I won't be asking for a refund. I WANT MY TESLA ROADSTER !!! It is still the most awsome car on the planet.

DDB · 01-18-2009, 07:25 AM

So what happens when Tesla introduces Model S and takes deposits? There are plenty here at this forum that may think twice simply because it could end up costing 20-30% more. That could really hurt Tesla

vfx · 01-18-2009, 07:25 AM

Quote:

Originally Posted by felix pius

... Tesla could be forced to increase the roadster prices soon in order to get cash flow positive. They can only arrive to that, if the costs of the roadster are now 100% covered by the selling prices.

You don't know this. Or more accurately, you don't know if they are not already covered.

It's about being true to your word.
Tesla has raised their prices. Three and a half times. (92K, 98K, and 109K now 125K)

Raising prices is not uncommon. But there are hundreds of people who have already made a deal or "locked in". Reneging on the deal creates a lot of bad blood.

What if you waited an hour to get in a popular diner, sat down and ordered a burger and fries. Then while you can smell it cooking the waiter informs you that you have to pay extra for salt and catchup, and the bun will now be white bread unless you pay more and it will be served on a piece of notepaper unless you buy the plate upgrade.

Would you eat there again?

James · 01-18-2009, 07:38 AM

Quote:

Originally Posted by DDB

So what happens when Tesla introduces Model S and takes deposits? There are plenty here at this forum that may think twice simply because it could end up costing 20-30% more. That could really hurt Tesla

That is a very good point. But the base price of the Roadster is still being honored. Those people that paid $92,000 or $98,000 or $109,000 are still only being charged that amount.

This is only the options that have been jacked up. Tesla likely regrets not charging more to those early customers, but that is still the price of the car for those early numbers. Any owner at $92,000 or $98,000 could purchase a base model for that price. The premium leather upgrade price has not changed at $1,800. That is the major upgrade item. I think many people could find most of the other upgrades aftermarket (electronics group, wheels, etc).

If you really wanted to, you could even ship the vehicle yourself at about $800 and avoid the $1,900 delivery fee.

I would be more concerned about putting down big money for a Model S. I wouldn't pay a $30,000 deposit, but I might do a $5,000 deposit. It really depends on if it is truly an incredible sedan.

I would be more worried about the long term health of Tesla Motors surviving till the Sedan is produced. I don't know if they are selling any more Roadsters in this market. They might complete their backlog in late 2009 and not have anything to do. That is one reason I am not doing the extended warranty ($5,000) or the replacement battery ($12,000). I am not sure Tesla Motors will be around 4 or 5 years from now. I hope they are still operating, but we cannot be sure in this market.

vfx · 01-18-2009, 08:20 AM

Quote:

Originally Posted by James

This is only the options that have been jacked up.

What about the wheels?

graham · 01-18-2009, 08:35 AM

Quote:

That is a very good point. But the base price of the Roadster is still being honored. Those people that paid $92,000 or $98,000 or $109,000 are still only being charged that amount.

This is only the options that have been jacked up.

I have been avoiding saying much more publicly on this until I get more official confirmation from Tesla. I will say this: The original option prices are actually listed in line-by-line detail in my original paperwork with Tesla. They always made a big deal that the HPC "comes as part of the price of the car..."

I would not be unhappy with them at all about this if I had not been an early adopter. If I had purchased a 2009 with my options already unbundled I would have gone into knowing full well what I was paying for. This is about agreeing to a price, making a big deal about getting in early to lock in a price (including options) before it goes up, and then at the last minute breaking that promise.

I want Tesla to succeed. I want them to get cash flow positive. But do it by offering services I want to buy at a price I can afford. Or at least politely asking would I mind paying more for a service I have already paid for to help a brother out. I am good with that. Keeping my money for 2 years and then saying "pay 12 grand more, or you get no car " at the last minute is just not cool.

vfx · 01-18-2009, 08:57 AM

Quote:

This is only the options that have been jacked up.

Quote:

They always made a big deal that the HPC "comes as part of the price of the car..."

That too.

.

j-g · 01-18-2009, 09:00 AM

It was my understanding from the beginning that the battery pack in today's dollars was ~$20,000, not the $30,000 quoted in Elon's letter. Am I remembering this inaccurately? Also, with normal use, it was to have lost ~20% of its charge in 5 years. Does that mean it will be useless in 7 years?

I also expected that the replacement battery pack that would ultimately be purchased in the future would be significantly different than the current one due to technological advancements. This would translate into greater energy storage or lower cost or both. Given these expectations, it sounds very unreasonable to plunk down $12,000 right now.

It is like buying roof replacement insurance for my house.

Jeff

James · 01-18-2009, 09:24 AM

Quote:

Originally Posted by vfx

What about the wheels?

I am willing to wager that you could buy those same Tesla wheels (or better) for about $1,500. Then you could sell the basic wheels that come with the car.

You are correct that this is lousy switch made by Tesla Motors. The basic wheels are clearly less attractive.

James · 01-18-2009, 09:31 AM

Quote:

Originally Posted by graham

I have been avoiding saying much more publicly on this until I get more official confirmation from Tesla. I will say this: The original option prices are actually listed in line-by-line detail in my original paperwork with Tesla. They always made a big deal that the HPC "comes as part of the price of the car..."

If the early owners have that level of paperwork signed and in a contract, then I think that the HPC issue is going to be very difficult for Tesla Motors to deal with. They might have to keep that included in the package. I know there are lawyers who are in that group.

I was not following the Tesla universe back then so I don't know what was promised. I made my deposit in September 2008 and I am at the $109,000 level. It was made clear to us that the HPC is $3,000 extra. So I don't have the same anger.

But I fully understand the anger of owners that took a VERY early risk by making large deposits to Tesla, interest free loans, with nothing being safe in an escrow account. If Tesla Motors had failed, then the money would have been lost in bankruptcy.