SMART Business Or The STENCH Of Desperation? Tesla Pitching New Model S 60 To Model 3 Handraisers

So, I think it’s safe to assume that if you’ve read AutoSpies before you’re aware of the latest surrounding Tesla Motors. It has introduced a wildly successful concept vehicle dubbed the Model 3 and now it has a staggering, give or take, 350,000 handraisers who put a deposit of $1,000 USD for a vehicle.

While TSLA’s CEO, Elon Musk, has put forward some seriously aggressive timelines as to when the first batch will hit the streets, most are considering it a reach goal. It could have to do with Musk’s inability to deliver anything on time. 

That said, it’s been announced that the first Model 3’s will hit the streets at the end of 2017.

A very vocal and very thoughtful Spy has made his voice loud and clear. mre30 has been making excellent comments for a long time here on AutoSpies but he really has some sharp comments for the latest happenings at the California EV maker. He’s pointed out, numerous times, that Tesla is only selling fully kitted out vehicles first. If you’re a buyer and you want a vehicle with fewer options, you’re going to wind up waiting…and waiting…and waiting. 

Assuming Tesla hits its deadline of a Model 3 in buyer’s hands by the end of 2017, we’re thinking that means it will be at least one full year before the stripper models get into owners’ driveways — and we’re being optimistic. 

Tesla must know this. And that’s why it is sending emails to those who have reservations to upsell them on the newly released Model S 60. 

Personally, I find this amusing because when I saw the press release I chuckled and said to myself “Well, that’s cute.” 

Because I am an idiot, I didn’t post a story about what I really thought was going on here. When the Model S 60 debuted I was going to ask YOU if this was Tesla's way to move more product since the 3 is so far away from reality. I don't think I need to ask now as it is patently obvious!

This has me wondering what YOU think, Spies: Is this move by TSLA smart business or does it reek of desperation? DISCUSS!

This is the email Tesla is sending out to its handraisers: 

 

Hello xxx,

We are thrilled to have just launched the new Model S 60 and as a valued model 3 reservation holder I wanted to personally reach out to invite you to University Town Center Showroom to experience Model S 60 and 60D. It is a wonderful opportunity to get into a custom designed Tesla with payments starting at $667/mth before gas and tax incentive savings. Depending on your current vehicle trade-in value the monthly payment could be even lower.

We know how excited you are to receive your Model 3 and wanted to ensure you had the chance to work with myself and our team to explore the options of getting into a Tesla even sooner. Please let me know if I can arrange a test drive experience for you or answer any questions. We would also be happy to review your current trade-in options as well. We are here to help you build your dream car and continue our mission to accelerate the transition to sustainable transport.

Please feel free to reach our UTC Showroom Manager, xxx, at xxx or call 858.xxx.

carloslassiter - 6/17/2016 11:54:41 PM

-4 Boost

The stench of desperation? From a company that has 300,000+ consumers ravenous to buy their product before it's even made? Can you name any other company of any kind anywhere with this same terrible problem?

I can only conclude that mre30 is a middle manager for Buick, or a moron. It has to be one or the other. Actually, it could be both.

Agent00R - 6/18/2016 12:43:43 PM

+4 Boost

Interest does not dictate success.

Execution does.

And, mre30 has done quite well. But, you seem to know everything...

mre30 - 6/18/2016 2:08:35 PM

0 Boost

Desperation of course! Other question, no I am not a middle manager for Buick. I am a CPA and real estate investor who is a life long car enthusiast and loves cars.

Due to my career trajectory, I have an extremely sensitive Bull Sh-t meter and I can confidently say that Tesla - its communications, vehicles, and perhaps way of doing business, in my opinion, complete spikes my meter!

emiliojose - 6/18/2016 12:45:46 AM

0 Boost

It actually seems very smart to try to sell another car while customers wait for the Model 3. It can be 4-5 years before they can deliver them.... so why not try to hitch them into a current one now?

Agent00R - 6/18/2016 12:46:03 PM

+1 Boost

It isn't an awful idea, but if the factory was going to be humming and vehicles were to be delivered by the end of 2017, why push another product? Two reasons:

1) You know you won't meet the deadline and interest will wan; or,

2) You're trying to upset your buyers who are jacked up and excited.

Weapon - 6/18/2016 1:06:32 AM

-4 Boost

Well first of all, the Model 3 will be sold by geography based on position in line.

That said, Tesla is right now at a production rate of 2000 cars per week which will probably continue to increase. And the slight production delays with Model X as they make adjustments. It makes sense to push some Model 3 buyers to the low end Model S that are located in the US. As it helps them move numbers quickly to fill in the Model X gaps.

Though I wonder how long it will be till they unveil the 100D and P100D.

Agent00R - 6/18/2016 12:47:51 PM

+1 Boost

I hope they do increase! Would like to see the Model 3 happen on time and get the product in customer's hands ASAP.

POSITVT - 6/18/2016 2:26:21 AM

0 Boost

SMART business, obviously.

TheSteve - 6/18/2016 8:35:25 AM

+2 Boost

Whether this turns out to be an act of desperation or just plain old business practices depends upon only one thing: Will Tesla be able to convert their stack of Model 3 orders into sales, of any sort, at some point. If the Model 3 never gets produced, but those Model 3 orders get converted to Model S or X sales, then that’s still a win for Tesla.

Personally, I believe Tesla is a house of cards, and within 10 years, they won’t be around (or they’ll be doing a Blackberry-like, Walking Dead death spiral). Within 5 years, the cracks should be abundantly obvious to all but the most devoted fans.

Time will tell if I end up resembling a nay-sayer who believed that Henry Ford and his company had no future, or whether I was the guy thinking that surely Fisker can’t survive. I also predict that if Tesla goes Chapter 11 (or gets bought out by the Chinese), Tesla fans will still say I was wrong, and they’ll attribute Tesla’s demise to some conspiracy theory.

Time will tell. For the sake of the 300,000+ people who put $1000 down for a Model 3, I sincerely hope I’m WAY off base, and that they’re happy with their purchase.

Agent00R - 6/18/2016 12:51:21 PM

+2 Boost

That makes a whole bunch of us.

We want to see Tesla kill it; however, we also are wary of companies that operate at the razor's edge.

MDarringer - 6/18/2016 9:59:13 AM

+5 Boost

It probably means that Model 3 is vapor and they are going to try to swindle people who are the most eager.

MDarringer - 6/18/2016 11:06:32 AM

+4 Boost

Clearly you're a Teslaphant...cash the fanboy check ASAP.

TheSteve - 6/18/2016 6:24:51 PM

+1 Boost

runbuh wrote "...How is it a "swindle" if the people get a Model S now instead of the Model 3 later?..."

In business, it's called a Loss Leader. First, you take deposits for the Model 3, which you allege will be sold in 2 years for $35,000. You do this while it's still on the drawing board (i.e., you don't know the actual production costs, because the design is still not finalized). Who knows when or if the Model 3 will ever be produced (though we all certainly hope so), or what the actual price will be. In the meantime, we can put you into a nice $66,000 Model S, right away!

Sell the dream, but deliver the reality.

Mind you, if Tesla starts delivering Model 3s for $35,000 by the end of 2017, as they alleged they would, then Tesla was all above board, and just offering other options to their customers. Nice Tesla! Let's give this some time and see how it pans out.

carloslassiter - 6/18/2016 8:17:53 PM

-5 Boost

Got it. Tesla is a desperate company, there is a stench around them and they are trying to swindle people.

I don't believe I've ever read more utter nonsense so confidently presented.

Agent00R - 6/19/2016 11:23:24 AM

+2 Boost

Carlos, if you want to cover your eyes and ears and play dumb, that's fine. Don't expect everyone else to follow suit, however.

As previously noted, we want to see Tesla succeed; however, hand raisers and interested parties should be thinking about these things. If they don't care and they want to wait to get their 3 — whenever that happens — that's great and good on Tesla for creating some people are so devoted to. But, there's people in that 350k that are expecting a vehicle at the end of 2017. Note: there were more deposits but people have been pulling out and getting their $1,000 USD back.

carloslassiter - 6/19/2016 6:11:08 PM

-4 Boost

How about simply providing balanced coverage and comments? Is that too much to ask? Honestly, whatever redeeming value this site once provided has long since evaporated in a hail of click bait and National Enquirer-style headlines.

MDarringer - 6/19/2016 7:44:36 PM

0 Boost

And we want to stifle freedom of speech why exactly?

carloslassiter - 6/19/2016 8:05:04 PM

-4 Boost

I get it. The more outrageous the crap you post, the more clicks you get. It's how this site survives, since it can't be because of the journalistic integrity.