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Tesla Email: $30,000 Off P100D!!!!

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Have to say - Elon is right. I for one am unimpressed with some of Tesla's recent antics.

It also clobbers the wider resale market so all existing owners lose too - ie most of us here.

If Tesla offers massive $30K discounts this will become increasingly common knowledge to the wider public. High spec cars depreciate iro 25-30% in year one; doubling that to 50-60% is not an attractive proposition to even the most fanataical buyer. And if the top ones collapse in resale price, the ones further down the range get hit too

Furthermore this will damage future sales of top spec models in particular (ie those with the greatest margin and greatest revenue to Tesla) and will end up with market distortion with buyers holding off for quarterly firesales, pehaps only to be disappointed in a particular quarter and actually end up not buying at all.

Add to that reports of 100D performance improving to 3.3 sec which haven't been debunked yet, this picture being painted to me is that Tesla, not for the first time, are in a sales/marketing mess, and this mess is fundamentally of their own making and at the expense of their existing owners.

Nobody questions Tesla pushing the boundaries, however when they have no peers today for them to apparently trip over their own feet trying to outdo themselves is unseemly and ultimately damaging to ... Tesla.

Tesla would do well to remember

Fool me once ...
It's pretty obvious what is going on here, and I doubt that Elon is not clued in, especially given McNeil's bonus plan. I expect a major upgrade to the interior for the S & X to be announced and available the first week of October. That means all of the existing inventory cars would have to be discounted at that time because of no longer being the latest/greatest. Instead, Tesla is discounting them now to drive Q3 sales. In Q4 they will have the spiffy new interior as a draw and discounts won't be necessary, except for any leftover old interior cars.

So with this upgrade Tesla is able to generate additional demand in both Q3 and Q4 - precisely what they need to do in order to have 2H17 deliveries exceed 1H17 deliveries as they guided a month ago.
 
Elon leaked some BS impassioned plea that it would never happen again. I found it hilarious, but some of the true believers asked for a second glass of kook aid. The point is, the discounting continues.

Obvious conclusions include: Elon lied about discounts, and since he personally explained in depth why they are counterproductive long-term, it means Tesla feels they have no choice. I'm not sure how worried I am about a fall off in sales, but when you're selling a growth story with a valuation 100x future earnings, it would tend to change your focus!
You are wrong. What Elon said was that a buyer who was a good negotiator should never be able to get a Tesla for less money than another buyer who didn't negotiate. That was the discounting that he put a stop to last year.

Yes, Tesla discounts inventory: $1/mile driven + $1000/month of age + some amount they determine for cars which don't have or soon won't have the latest feature set. They also discount inventory when they have reduced the MSRP for current cars ordered as they did recently. But the point is that if you buy a particular inventory car or I buy it we both pay the same set price, with the discount that Tesla has specified. No negotiation, no "free options" thrown in by the salesperson to close the deal, no additional discount that you as a buyer request and has to be approved by his/her manager like happens with franchised dealers.
 
It's pretty obvious what is going on here, and I doubt that Elon is not clued in, especially given McNeil's bonus plan. I expect a major upgrade to the interior for the S & X to be announced and available the first week of October. That means all of the existing inventory cars would have to be discounted at that time because of no longer being the latest/greatest. Instead, Tesla is discounting them now to drive Q3 sales. In Q4 they will have the spiffy new interior as a draw and discounts won't be necessary, except for any leftover old interior cars.

So with this upgrade Tesla is able to generate additional demand in both Q3 and Q4 - precisely what they need to do in order to have 2H17 deliveries exceed 1H17 deliveries as they guided a month ago.


Curious why many on this forum seem to think a 'major' interior update is on its way? Tesla has consistently gone the 'minor update' route for the past 2-3 yrs. This has provided the added advantage of continually refreshing the interior over time and ensuring that the market for the model S remains consistent and fresh.

From what I've seen, opinions by owners/forum members tend to differ from how the general public or non -Tesla owner seems to view the exterior/interior. Ie. just today I had 3 people come up to my vehicle at a car wash and for 25min all were extremely intrigued and wow'd by the ext and interior...namely the minimalist look and how futuristic the console looked. All of them were completely taken with the interior and how amazing the screen interface was, how simple and intuitive the design was, how well crafted the ergonomics were etc etc. I chuckled internally as I remember feeling the same prior to our purchase! What I'm implying here is that Tesla owners become quite accustomed to what they have and over time their opinions and desires to look for change with some of the 'faults' start to translate into comments like 'refresh needed..interior not good enough, we need more, lacking in this, that or the other '. However to put it into a larger context, non-Tesla owners still adore the model both in and out. They don't see the faults we do and are thus not demanding anything with respect to any major refresh...WE are! They just see the most technologically advanced vehicle ever produced wrapped in a beautiful package right out of the 22nd century! Which it truly is :)

Tesla knows this as well. They are marketing to new ice owners and trying to get the general public to come on board and adopt EV tech for the greater good of the world. In the eyes of those who don't own a Tesla or those who have recently purchased ...it is absolutely perfect as is. All I'm saying is that business decisions made by Tesla are not solely for the purpose of satisfying the needs of existing owners nor creating their design strategy based on those who are already convinced. They will take into account general consumer demand as well as competition within the industry. Ie. Chevy bolt, Nissan Leaf etc. For now until Lucid air, Faraday Future or even Merc, Volvo or any of the traditional auto companies provide a truly competitive model, Tesla's design is still top of the game in its class category.

I suspect we will see more minor updates as has been occurring every quarter or bi-yearly as this has worked thus far in keeping the interior constantly updated. Ie. door pockets, handles, maybe different trim, perhaps auto open/close as with model X.

As for Model 3, Model S and X may eventually start moving more towards a more luxurious version of the newer updated M3 design to keep all models coherent in style.

My 2 cents :)
 
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You are wrong. What Elon said was that a buyer who was a good negotiator should never be able to get a Tesla for less money than another buyer who didn't negotiate. That was the discounting that he put a stop to last year.

Yes, Tesla discounts inventory: $1/mile driven + $1000/month of age + some amount they determine for cars which don't have or soon won't have the latest feature set. They also discount inventory when they have reduced the MSRP for current cars ordered as they did recently. But the point is that if you buy a particular inventory car or I buy it we both pay the same set price, with the discount that Tesla has specified. No negotiation, no "free options" thrown in by the salesperson to close the deal, no additional discount that you as a buyer request and has to be approved by his/her manager like happens with franchised dealers.

People need to stop with the $1/mile & $1,000 per month discount formula. While Tesla had this formula like 2 years ago, it's not even close to being accurate now.
 
Yes, Tesla discounts inventory: $1/mile driven + $1000/month of age + some amount they determine for cars which don't have or soon won't have the latest feature set. They also discount inventory when they have reduced the MSRP for current cars ordered as they did recently. But the point is that if you buy a particular inventory car or I buy it we both pay the same set price, with the discount that Tesla has specified. No negotiation, no "free options" thrown in by the salesperson to close the deal, no additional discount that you as a buyer request and has to be approved by his/her manager like happens with franchised dealers.

Spend 5min looking at the discounts on brand new cars (they are the ones listed at "50 miles"), then come back and walk me through that math one more time.
 
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Curious why many on this forum seem to think a 'major' interior update is on its way? Tesla has consistently gone the 'minor update' route for the past 2-3 yrs.

It's fair to even say that for the past 5 years. Even the 2016 exterior refresh is just a new bumper and slightly modified hood and headlights, not a major change (the dual motor was a bigger change to the car). Tesla has already made several minor adjustments to the interior in the past few months (dash, seating material, color, rear seats, console), none of which would have made sense if they were planning a major interior change just a few months later. I completely agree that any change to the interior will continue to be incremental.
 
It's fair to even say that for the past 5 years. Even the 2016 exterior refresh is just a new bumper and slightly modified hood and headlights, not a major change (the dual motor was a bigger change to the car). Tesla has already made several minor adjustments to the interior in the past few months (dash, seating material, color, rear seats, console), none of which would have made sense if they were planning a major interior change just a few months later. I completely agree that any change to the interior will continue to be incremental.

Agreed!
 
Curious why many on this forum seem to think a 'major' interior update is on its way? Tesla has consistently gone the 'minor update' route for the past 2-3 yrs. This has provided the added advantage of continually refreshing the interior over time and ensuring that the market for the model S remains consistent and fresh.

It's fair to even say that for the past 5 years. Even the 2016 exterior refresh is just a new bumper and slightly modified hood and headlights, not a major change (the dual motor was a bigger change to the car). Tesla has already made several minor adjustments to the interior in the past few months (dash, seating material, color, rear seats, console), none of which would have made sense if they were planning a major interior change just a few months later. I completely agree that any change to the interior will continue to be incremental.

Tesla has been steadfast in positioning the flagship Model S as "better everything" than the Model 3. Better range, more room, better acceleration, more displays, etc. The one thing they can't claim now that the Model 3 interior has been shown with door pockets, seat back pockets, rear fold down armrest, etc. is "better interior". In order to regain that, the Model S (and Model X) interior needs a significant upgrade that goes beyond what is available in the Model 3. I believe that is coming in October.
 
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Spend 5min looking at the discounts on brand new cars (they are the ones listed at "50 miles"), then come back and walk me through that math one more time.
Did you miss the part where I said "+ some amount they determine for cars which don't have or soon won't have the latest feature set"? There is a new interior likely coming in October. Looking at ev-cpo.com, it appears that the "obsolescence discount" on the 100 kWh battery cars is $6,500.
 
THE TESLA EMPLOYEE WAS FIRED!

One of our local Tesla owners informed me that Aaron Schenck, the sales advisor who sent that email, has been terminated in a "heads must roll" move by Tesla after the publishing of this Elektrek article: Tesla offers ‘up to $30,000 showroom discounts’ and lowers interest rates to boost sales before end of the quarter.

It is my understanding that Mr. Schenck was acting with his manager's approval. This seems like an unjust move by Tesla and some of us local owners would like to see Tesla do the right thing and reverse his termination. I don't have all the details, obviously, and would welcome some of our local owners to chime in on this developing story.

Is there anything we can do?
 
I would think that just like last year at the end of Q3, when I got my P90D at $30k off sticker only to have the P100D immediately offered, there is probably going to be a significant body change or model change to the S - I would jump at a P100D but am waiting to see what is next ....then I will buy whatever gets refreshed.

If you looked at ev-cpo all year there have been $30k discounts available on some P100D's there actually are less available now than a month ago at significant discounts.
 
THE TESLA EMPLOYEE WAS FIRED!

One of our local Tesla owners informed me that Aaron Schenck, the sales advisor who sent that email, has been terminated in a "heads must roll" move by Tesla after the publishing of this Elektrek article: Tesla offers ‘up to $30,000 showroom discounts’ and lowers interest rates to boost sales before end of the quarter.

It is my understanding that Mr. Schenck was acting with his manager's approval. This seems like an unjust move by Tesla and some of us local owners would like to see Tesla do the right thing and reverse his termination. I don't have all the details, obviously, and would welcome some of our local owners to chime in on this developing story. Is there anything we can do?

I would recommend bringing this to the attention of Jon McNeill, the sales/service VP to review the case :cool:

screen-shot-2017-08-16-at-9-34-21-pm.png
 
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Same thing showing on UK cars.. even inventory cars that were built months before the new hardware. Looks like a cockup to me...

Haven't gotten around to asking our local Tesla store about this, but the 3.3 seconds 0-100 km/h for 100D on inventory cars indeed seems to be a mistake.
Because when you go to the configurator and choose a 100D, it says 4.3 seconds. Sounds more realistic for a non-P.
 
THE TESLA EMPLOYEE WAS FIRED!

One of our local Tesla owners informed me that Aaron Schenck, the sales advisor who sent that email, has been terminated in a "heads must roll" move by Tesla after the publishing of this Elektrek article: Tesla offers ‘up to $30,000 showroom discounts’ and lowers interest rates to boost sales before end of the quarter.

It is my understanding that Mr. Schenck was acting with his manager's approval. This seems like an unjust move by Tesla and some of us local owners would like to see Tesla do the right thing and reverse his termination. I don't have all the details, obviously, and would welcome some of our local owners to chime in on this developing story.

Is there anything we can do?

Is firing a little too harsh???
 
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I would recommend bringing this to the attention of Jon McNeill, the sales/service VP to review the case :cool:

screen-shot-2017-08-16-at-9-34-21-pm.png

I'd recommend not wasting his time about something he surely already knows about. I'd also not assume that "he had his bosses approval" for that email (exactly as it went out), and that Tesla decided out of spite to fire him and not his boss. I'd wager that a much more likely situation is that he had his boss's approval to plug showroom / CPO Teslas with up to a $30k discount vs. new, not to make it so it might sound like brand new vehicles got up to a $30k discount.

The problem is just that, that the email was an attempt to plug showroom / CPO Teslas, but did not make that entirely clear, and ended up getting press that Tesla was not happy with because said press implies that Tesla was lying about there being no discounts (even though most journalists seem to have correctly deduced that it was really about showroom / CPO vehicles). While firing for that is rather harsh, this isn't exactly the first time Tesla has snapped back at its sales side's attempts to meet quarterly sales figures using tactics that Tesla has considered overaggressive / not in line with corporate image/strategy.