Model S/X Owners Have Priority Model 3 Orders Over Non-Owners

[SureValla]

I'm wondering at what point we are asked if we want a fully optioned car and if we will be able to see the effect in change of delivery date when we make that call. I might be willing to take a few more options if it gets me a car 1-2 years sooner.

 

[stevej119]

Not that impressed, but I am in the UK so have a massive delay anyway, won't be getting the car for a good few years.

"Loyal" gets ahead of the game, but the only reason I don't have a Tesla at the moment is because I can't afford one, hence why I want to get the Model 3! I had shares in TSLA when they were $18. But I guess that all counts for nothing.

Do you still have the shares?

 

[smartypnz]

Tesla just massively trashed the value of an early reservation. If a 100,000 people can jump ahead in the queue, what is the use of a low reservation number? This also ensures we don't get tax credits. Someone buying a S/X in 2019 can jump ahead of me reserving 3 at 10 am in the store on 31st !

The chances of me getting a Bolt or Leaf 2 substantially went up. In fact I can get one of these on a 2 year lease in 2017 and may not be able to get 3 in 2019 when the lease ends!

Yeah..... but then you wind up with a Bolt or a Leaf.

 

[strider]

A parent pushes his children out the door and watches to see them do well.

Model S/X and Roadster owners should step aside and let the general public come in and get theirs ahead of them.

Why do S/X people need to be in line ahead anyway? I don't know if I can understand the issue fully. If you're happy with the S, is it that they must be first in line to get a 3 for their spouse or children or to scalp them in some early-trade when they first come out? Surely the wealthier buyer can get one, take the tax credit and re-sell it for nearly the sticker price to someone who cannot take the tax credit themselves and make some money on it. Is this really a fair market being setup?

If demand is really that good, there is no need for preference. If there really is preference - put roadster owners first. Those cars are comically small Then put conquest buyers next - those trading in a Leaf or Volt or whatever. Isn't the desire to get people to "convert"?

Before we had kids we sold my Corvette and bought a Roadster. I still use that for my daily commute. We now have 2 kids and my wife has on-site day care so she has a Model S. However there are times when it would be nice for me to be able to haul kids in my car. But I don't need a Model S (it's a large car). A Model 3 will be a perfect compromise between sportiness and practicality. We are on the fence about whether to sell the Roadster or keep it when the Model 3 comes.

I think you'll find very few people "flipping" Teslas. Once people get them they tend to keep them.

The rationale for giving current owners priority is that the early cars will undoubtedly have problems. Even "established" car companies have troubles with first model years. So for Tesla's sake it's much better to have those early cars in the hands of employees and current owners as they are much less likely to complain about problems and/or give Tesla time to fix them. They already have a relationship with their service center and are familiar with Tesla's ways of doing business (terrible communication, e
etc).

The reservation priority only affects when you are invited to configure your car. It does not determine when you receive your car. Delivery order is based first on configuration (Tesla batches like cars together and as Elon has said they will do more expensive models first) and second on configuration date (date on which you configured the car and submitted the order) and geography. As it gets close to end of quarter Tesla will deliver cars closer to Fremont so they can book the revenue. So if a General Production person orders a highly optioned car they will get theirs before a current owner gets a lesser optioned car.

With the Model S they maintained the priority list until General Production were invited to configure. I expect it'll be the same with Model 3.

Honestly after my experience with our Model S and reading about the early Roadsters and Model X's I may even defer my order for 6 months or so to let them work out some more kinks.

 

[Bimbels]

Before we had kids we sold my Corvette and bought a Roadster. I still use that for my daily commute. We now have 2 kids and my wife has on-site day care so she has a Model S. However there are times when it would be nice for me to be able to haul kids in my car. But I don't need a Model S (it's a large car). A Model 3 will be a perfect compromise between sportiness and practicality. We are on the fence about whether to sell the Roadster or keep it when the Model 3 comes.

I think you'll find very few people "flipping" Teslas. Once people get them they tend to keep them.

The rationale for giving current owners priority is that the early cars will undoubtedly have problems. Even "established" car companies have troubles with first model years. So for Tesla's sake it's much better to have those early cars in the hands of employees and current owners as they are much less likely to complain about problems and/or give Tesla time to fix them. They already have a relationship with their service center and are familiar with Tesla's ways of doing business (terrible communication, e
etc).

The reservation priority only affects when you are invited to configure your car. It does not determine when you receive your car. Delivery order is based first on configuration (Tesla batches like cars together and as Elon has said they will do more expensive models first) and second on configuration date (date on which you configured the car and submitted the order) and geography. As it gets close to end of quarter Tesla will deliver cars closer to Fremont so they can book the revenue. So if a General Production person orders a highly optioned car they will get theirs before a current owner gets a lesser optioned car.

With the Model S they maintained the priority list until General Production were invited to configure. I expect it'll be the same with Model 3.

Honestly after my experience with our Model S and reading about the early Roadsters and Model X's I may even defer my order for 6 months or so to let them work out some more kinks.

That is exactly how I understand things. And since I am not getting the P version (assuming that's what's offered) I know I will wait regardless of having already configured.

That said, I think as production starts we will all have questions about ramp, number of lines, etc. Eventually it seems they will need (or be able to?) change this process as volume increases. It's just a question of how fast that happens.

 

[Monkey]

As with reservations for the S and then the X, this grants you access to the design studio. It is not a determining factor as to when your car gets built, other than giving someone the opportunity to place their order a bit sooner. Build order is assigned when orders are placed and confirmed. Think of existing Tesla owners getting priority on the equivalent level of Signature reservation holders. They will be the first group invited to configure, but if they stall off ordering until after other non-owners place their order, then that priority owner reservation person will be in the factory line behind the non-owners.

If Tesla is going to make as many Model 3's as they hope and claim, production will go very quick anyway.

I think the owner priority is a nice gesture. And like many who have recently bought an S or an X (I'm still awaiting my X delivery), the 3 may not be on our agenda. I'm anxious to see the 3, but 99% sure I won't be placing a reservation.

 

[smartypnz]

I am curious, however, regarding one thing: For all the forum members fussing about the tax credit and worrying they won't receive it ... how many of you have contacted your legislator? They are the people who can actually do something about this.

I always thought it would be more effective to employ the 'Auto Dealer Assn'. Stay with me...
Rebates given by the government are actually meant to promote a product which entices people to purchase more of said product. I have always suspected that company 'A' may be on the up and up - but companies 'B', 'C', and probably 'D' have their marketing meeting and someone says "Let's increase our price by ($7,500) - the buyer will get that back from the IRS so they will grab that incentive".
Thus the ADA will be more than happy to campaign to extend the "Tax Credit" as they can increase the base price - and since buyers feel good about getting this 'credit', the decision over a (non credit) vehicle is made. Thus increase in sales and profit paid by us taxpayers.

 

[wraithnot]

I'm wondering at what point we are asked if we want a fully optioned car and if we will be able to see the effect in change of delivery date when we make that call. I might be willing to take a few more options if it gets me a car 1-2 years sooner.

Tesla will probably invite reservation holders to configure their cars a few months before they plan to ramp up production. At least with the Model S they told us which options would definitely lead to a delay (smaller battery, coil suspension, red paint color, etc.).

 

[EVNow]

Yeah..... but then you wind up with a Bolt or a Leaf.

Yes, I've been driving a Leaf for 4+ years. What will 2 or 3 more years do. It will be better than past 4+ years, anyway.

BTW, there is a reason my alias is EV Now and not EV 3 years from Now

 

[Skotty]

I side with those who think favoring current owners is a mistake. There are many supporters who just haven't bought a car because they can't afford one. Giving current owners priority is a move that favors the rich over the poor, and that is not a move Tesla should be making with the Model 3.

 

[EVNow]

I just tweeted to Musk, don't really expect him to reply - If I reserve a Model 3 on 2016-Mar-31st in the store, can someone buying a Model S/X in 2018 still jump ahead of me in the queue ?

 

[MTL_HABS1909]

I side with those who think favoring current owners is a mistake. There are many supporters who just haven't bought a car because they can't afford one. Giving current owners priority is a move that favors the rich over the poor, and that is not a move Tesla should be making with the Model 3.

I agree with you 100% but be careful saying it around here.

 

[eloder]

I don't get the tax argument.

Chances are if you can't afford a Model S, you're nowhere near getting the full $7500 out of the tax credit. So even a phased tax credit will still be close to full value.

This is coming from someone who is purchasing a M3 and won't come close to the full $7500 rebate. Not a current Tesla owner.

It makes a ton of sense for Tesla to prioritize owners, too.

1) I doubt early Model 3's will be any better than early Model S's or Model X's. They will be buggy and they will require a lot of servicing early on. Current S owners are far more likely to deal with these issues in stride (and they also will likely have jobs much more capable of taking time off / time away to help deal with these issues).

2) This helps lessen, drastically, the number of Model 3's that will require long trips for these early bugs and servicing issues. Model S and X owners are predominantly near service centers because centers have literally sprung up around the highest concentrations of owners over the years.

3) It's no different than the in-store reservations first, sight unseen. More chance of enthusiasts, and a near-guarantee that the reservation holder will be near a service center. Beta test #2--non-owner in-store reservationists--will still very easily deal with issues.

4) First impressions are a big, huge deal. A current Model S enthusiast won't care as much about quirks/bugs because they've likely seen far worse on the MS/MX. Someone of moderate income who runs into financial trouble because of M3 issues? Not so caring or understanding.

5) They took a huge chance on a company that may not have made it. Even later adopters still had the risk of the company possibly going belly-up with one bad mistake, lawsuit, or natural disaster--making their 70k+ purchase worthless over time. With the MX launch now successful, Tesla is pretty much a zero-risk company now.

6) Tesla will have zero trouble filling orders. You'll be forgotten to history, just like those who cancelled MX reservations over "foldgate". Especially the Bolt/Leaf 2 folk--seriously, it's your loss if you go this route.

I can understand how much it sucks with the timing--my current Leaf lease comes up mid 2018 and it's unlikely I'll get my car by then--but this decision makes sense for Tesla, it doesn't have to make sense for me.

 

[rnelsonee]

Chances are if you can't afford a Model S, you're nowhere near getting the full $7500 out of the tax credit.

You only need about $47,000 (single) or $57,000 (married) in taxable income to be able to use the full $7500 tax credit. So add about $10k (single) or $20k (married) to account for the standard deduction and personal exemptions and you've got a ballpark minimum income needed. It's anecdotal, but I've got plenty more tax liability than that and cannot afford a $100k car.

 

[CHG-ON]

I am against this strategy. But if they allow we owers to have priority, I feel very strongly that they should make it a time-limited offer. For instance, current owners get pushed to the front of the line for the orders taken in the first month only. I think this for two reasons:

1: It would be terribly unfair to have this go on for too long, pushing new customers farther and farther back and bringing even more uncertainty as to when they might ever get their car.
2: I think it is in Tesla's best interest to bring new customers into the fold as quickly as they can to create a broader user base. If I were on that management team, I would fight tooth and nail to not do this at all. They lessen their ability to diversify their customer base, run the risk of alienating the public, increase the likelihood of those on the fence simply dropping the notion of buying, and they increase their dependence on high net worth buyers, which is clearly not the point behind building a mass market priced vehicle. Strikes me as marketing and sales 101:

Sell to the masses, eat the with elite. Sell to the elite, eat with the masses.

 

[McHoffa]

You only need about $47,000 (single) or $57,000 (married) in taxable income to be able to use the full $7500 tax credit. So add about $10k (single) or $20k (married) to account for the standard deduction and personal exemptions and you've got a ballpark minimum income needed. It's anecdotal, but I've got plenty more tax liability than that and cannot afford a $100k car.

Exactly. My tax for last year is a little more than that, so I would qualify. I guess technically on paper I could afford the monthly payments on an Model S, but I wouldn't have much spending money left, and I probably wouldn't get approved for the loan either.

 

[Bimbels]

I am against this strategy. But if they allow we owers to have priority, I feel very strongly that they should make it a time-limited offer. For instance, current owners get pushed to the front of the line for the orders taken in the first month only. I think this for two reasons:

1: It would be terribly unfair to have this go on for too long, pushing new customers farther and farther back and bringing even more uncertainty as to when they might ever get their car.
2: I think it is in Tesla's best interest to bring new customers into the fold as quickly as they can to create a broader user base. If I were on that management team, I would fight tooth and nail to not do this at all. They lessen their ability to diversify their customer base, run the risk of alienating the public, increase the likelihood of those on the fence simply dropping the notion of buying, and they increase their dependence on high net worth buyers, which is clearly not the point behind building a mass market priced vehicle. Strikes me as marketing and sales 101:

Sell to the masses, eat the with elite. Sell to the elite, eat with the masses.

And we don't know that they won't do something along those lines. I also agree there should be a time limit. We should wait and see what the details are before we jump to conclusions.

 

[CHG-ON]

And we don't know that they won't do something along those lines. I also agree there should be a time limit. We should wait and see what the details are before we jump to conclusions.

I totally agree. Thanks for saying this. Not jumping to conclusions. But I have seen other companies make misinformed committee-based decisions that have been huge mistakes. My hope is that Tesla does not do this. Groupthink can be so deadly.

 

[Bimbels]

I totally agree. Thanks for saying this. Not jumping to conclusions. But I have seen other companies make misinformed committee-based decisions that have been huge mistakes. My hope is that Tesla does not do this. Groupthink can be so deadly.

I am hoping they have their **** together with this. Not only the queue, but the ramp, too because this is going to be bigger than anything they've dealt with thus far!

 

[EVNow]

I don't get the tax argument.

Chances are if you can't afford a Model S, you're nowhere near getting the full $7500 out of the tax credit. So even a phased tax credit will still be close to full value.

This is coming from someone who is purchasing a M3 and won't come close to the full $7500 rebate. Not a current Tesla owner.

On the west coast - almost every IT professional would pay more than 7.5k in taxes - and most would think they can't afford S/X given the cost of living.

So, "afford" is a very subjective thing. We pay a ton of taxes (a lot more than 7.5k) - but we also pay over $40k a year in childcare. More importantly we'd need to buy a new house with a bigger garage - and that transaction would cost us more than a S.

Your 6 reasons are all true for me. I'm close to service center, tolerate beta/v1 cars (got a very early Leaf, which turned out to be very reliable, though), I've a S reservation from a long time (converted to X reservation) - so have given an interest free loan to Tesla for a number of years now etc etc