Tesla Is Playing By Their Own Rules Not The Industry - Is That Such A Bad Thing?

Tesla Is Playing By Their Own Rules Not The Industry - Is That Such A Bad Thing?

Tesla Motors Inc.’s unveiling of the Model 3 this week was a testament to what many already knew: Not all automakers are created equal.

The hype and anticipation leading up to the Thursday night unveiling was unlike anything the auto industry has ever seen, with thousands lining up to place a $1,000 deposit for the all-electric car, sight unseen. That led to more than 115,000 Model 3 orders on the first day of ordering for the $35,000-plus car, Tesla said.

“I don’t think the rules of the auto industry necessarily apply to Tesla on any level,” said Matt DeLorenzo, managing editor for Kelley Blue Book’s KBB.com. “Whether it comes to marketing, sales, production or keeping promises of when a vehicle is going to go on sale, it’s clearly a double standard here.”
 


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Vette71Vette71 - 4/4/2016 12:21:46 PM
0 Boost
The automobile market is mature and as such customers tend to segment into subgroups of buyers. Manufacturers who identify and uniquely meet the needs of one of these segments can prosper and grow. Tesla has shrewdly identified a group of early adopters for "zero emission" vehicles who are okay with non traditional forms of doing business and will change their habits (charging stations, etc) to accommodate their desire for this product. That works as long as there are more buyers like this who have not bought yet. However if the needed volume for business success requires that Tesla get large groups of other buyers, for example people who view a car like an appliance (i.e. Camry) who buy one to replace an old one like buying a refrigerator at a local business, then Tesla will need to change it's ways. The major manufacturers are already in the refrigerator mode, hence the Bolt doesn't get the excitement. But it will have an edge getting the commuter driver going to a dealer looking to replace their Camry or similar type vehicle.


vdivvdiv - 4/4/2016 3:02:00 PM
+1 Boost
Give them some credit, people are capable of change, especially when that change is for the better. Tesla has changed the traditional "mature" automakers. Those that have embraced electrification will do better, those that haven't are trouble.


vdivvdiv - 4/4/2016 3:14:03 PM
+1 Boost
meant "in trouble" but "trouble" works too :)


MDarringerMDarringer - 4/4/2016 7:34:53 PM
0 Boost
Tesla is a confidence swindle. If--big IF--Tesla got 250K people to put down $1K each, they just fleeced consumers for 250 MILLION free dollars. If they go belly up--and they will--not one cent of that money is likely to be recoverable.

There are also reports that Tesla's reports of deposits are wildly exaggerated.

But either way, Tesla is a dishonest company.

Tesla makes money on Tesla, but retailers don't.


vdivvdiv - 4/4/2016 10:51:53 PM
+2 Boost
Matt, every car maker is free to take deposits to fund development, how many do you think they would get? You'd love to see Tesla fail, but you know what? They are not going anywhere. Want to "beat" them? Then make better electric cars, improve your sales, improve your service, and improve your attitude.

The people that made these 300k+ deposits have driven other cars, have dealt with dealerships and gas companies, and are all sick and tired of it. They have taken the first step. They want something new. They want something responsible and sustainable. They want to be a part of something bigger, of something important, of something that matters for now and for the future. I am in awe of these people, really proud of them, really happy for them.

Tesla may not be perfect, it may not be punctual, it may not be complete, but they are working their asses off to constantly improve, to innovate, to solve challenges, to reinvest every earned penny, to make a difference, to change the world. And the status quo that you represent hates every bit of it because their old ways are soon to be over. It's time to embrace the change, to become a part of it, to become relevant again.


HenryNHenryN - 4/4/2016 2:26:21 PM
+3 Boost
I had a few occasions to talk to Tesla car owners and enthusiasts - never seen a more diverse and sophisticated group of people in the same settings. They are an unpretentious bunch, know their cars, the auto industry, the economy and technology. They represent a progressive mindset of the present and future (no political undertone here).

Tesla cars are not constrained to a fixed demographic and have many attributes that appeal to a broad audience. The strong global interest in the Model 3 is a testament of such appeals.

Now is the time when people realize they don't have to follow an obsolete set of rules. This is a fire siren for the old auto industry - we the consumer can now give you the middle finger if you don't change your way.



Vette71Vette71 - 4/4/2016 4:17:29 PM
0 Boost
I won't argue you description of Tesla owners. It was obvious from the intro crowd. But they are still a very very small percentage of the population. And your other description of the variety of people who make up the Tesla population applies to virtually every segment of the auto industry customers. We all know Toyota Camry, Porsche, Jeep, Subaru, etc. owners who fit that description. Each of them may be "progressive" in their own way, just not in electric vehicle.

The folks on this site are a good cross section and many certainly fit your description. Yet we drive a variety of vehicles for our personal reasons. And for many of us Tesla or even any electric doesn't and is never likely to meet our needs. That is the beauty of a market segmentation; we get what we want. In my own case I like to drive long distances in quiet comfort with a few very short stops plus I need to be able to tow 5000 to 7000#. Ergo loaded Jeep Grand Cherokee Summit diesel 4X4 which I love. Tesla or any other electric has nothing in the pipeline for me. Plus a real deal killer me is the thought of spending 1/2 hour recharging every 300 miles in a grungy turnpike rest area, when I can hit the restroom, pick up food and refuel in 10 minutes and be that much closer to my distention.

One gets the sense that you, vdiv et.al. feel you have to defend electrics or put down those of us who cannot see them fitting our needs. You don't. We are all different. If I comment about Tesla is is from a business perspective and its chances there.


vdivvdiv - 4/4/2016 6:01:27 PM
+2 Boost
Yes, on this site we have to defend the electrics because they are unfairly and inaccurately portrayed all the time. However it is unfortunate that you feel being put down, why is that?


HenryNHenryN - 4/4/2016 6:54:37 PM
+2 Boost
Sorry if my comment rubbed it the wrong way. The "you" in my message referred to the establishments - the automakers and dealerships who have to resort to political backing and trickery rather than honest competition against Tesla. For that I give "you" both my middle fingers.



MrEEMrEE - 4/4/2016 6:29:48 PM
+2 Boost
Vette71, maybe you would warm up to the extra 20 minutes fill-up time for an extra $50 in your pocket each time.


Vette71Vette71 - 4/4/2016 9:03:16 PM
0 Boost
Electricity is $.23/kwh in Mass. and rising. Much more expensive than places like Seattle and west coast cities. Ran the numbers and it works out to be the same cost per mile as my diesel that goes 700 miles between fill ups. Time is more valuable to me. Not to mention the anxiety issue of recharging before the 250 mile mark to be safe or traveling on rural interstates where there is no charging available. If Jeep or equivalent made a plug in hybrid mid size cross over that could tow 7000# I'd consider it.


mre30mre30 - 4/5/2016 11:38:38 AM
+1 Boost
Diesel is the way to go. My Mercedes diesel SUV goes 600 to 700 miles on a tank without the complexity and range anxiety of EV.

How viable is the EV concept in a "non-ego" purchase? Check out the terrible residual values of Nissan Leaf's and other low-priced electrics - it sucks! People with one vehicle cannot live with the potential inconvenience, range anxiety, and risk of missing work because the car didn't charge overnight. Unless you drive within a 5 to 10 mile radius of your home and/or live in a warm climate, the EV doesn't work as your only car.


MrEEMrEE - 4/7/2016 8:11:52 PM
+1 Boost
Regarding recharging stops vs diesel, even if you theoretically could go 700 miles highway, who would drive that distance without stopping 2 or 3 times. For Model S cross county the charging is free on Tesla supercharging. For city driving you would be lucky to get half that range with your diesel.


MrEEMrEE - 4/7/2016 8:13:54 PM
+1 Boost
Regarding recharging stops vs diesel, even if you theoretically could go 700 miles highway, who would drive that distance without stopping 2 or 3 times. For Model S cross county the charging is free on Tesla supercharging. For city driving you would be lucky to get half that range with your diesel.


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