The BASE Tesla Model 3 Is FINALLY Here, But There's A Catch...

Only one in three Model 3s sold so far were from the waiting list. Prepare for a stampede.

the social media hype on Tesla stock value can only last so long.

Rofl.

Tick...Tock Tick...Tock


#Enron2.0

Lol. That's ridiculous. Just short sellers last gasps.

"We" wanted the 35K Tesla.
We got the 35K Tesla.
We did not specify that we needed sales people.
In fact, the 450,000 reservations were an indication that we did not.

So, according to the trolls:

Tesla doesn’t have an available $35k Model 3 = Elon is a liar and Tesla is a scam.

Tesla does have a avaiable $35k Model 3 = Tesla is in trouble and about to go out of business.

Got it.

The $35K model will likely have no profit in it and may even sell at a loss is the real issue.

At my local Tesla store (East Hampton, NY), its main function seems to be lead generation. The store is open year-round (its quiet there once summer is over), but there is a call center setup in the back room, with one person on the sales floor and one or two more in the back, working the phones on "lead follow-up". They call me about once a month as I'm in their system and I tell them I'm waiting for the 'cheap' Model 3.

For anyone who has run a business, yes a sales force is expensive but executives dismantle it at their own peril. Selling is a "soft" skill but one that books revenue on the boards.

Prediction - Tesla sales are going to plummet as Musk dismantles the human sales force.

Or maybe this is Tesla's 'Hail Mary' to get people to convert their "cheap Model 3" deposits into a vehicle to stave off an SEC action?

Get out the lawn chair, the umbrella, the iced tea and the Martini Shaker - the parade is about to start.

Also more good news, just read the report that my Long Range Premium Model 3 is getting a new firmware update that increases the range from 310 miles to 325 Miles... thanks, Tesla!.

100% agree and the engineering is bound to be far better because Honda is an intelligently run company.

Sorry, I don't see any comparison between the Honda E and a Model 3 except they're both EVs. And I don't think the Honda looks all that great, unless I have't seen the right pictures.

Yeah, the Honda E might arrive in what, 2-3 years--likely with lower specs per dollar than the 3.

Wow! 15 more miles more from an hours long refill! Unless of course the temperature drops.

I wonder how much Elon will lose on every $35K Model 3.

I heard that Elon designs all software for its plant operations in-house. So I wonder what accounting system they are using to control production and handle management reporting.

Management Accounting has become a 'lost art' in America as production has moved overseas. Since there has been radio silence on accounting matters for Tesla (even though Tesla's auditor PWC has given Tesla a clean audit opinion), I wonder if there are accounting problems that get swept under the rug.

If you run a software company - accounting is easy - you raise money, build the software, captialize those cost, then amortize them over the product life against the software cost. Margins are huge, but its "make or break".

With Manufacturing, you have to invest in plant machinery, invest in things called tooling (or dies) so you can stamp out components (for example, body panels), then you have to add the costs of everything from the electric motors, down to the screws and glue. Its very, very, very complicated and it takes a lot of discipline on the accounting side to prevent it from getting screwed up (and the management reporting, worthless).

Given how Tesla is run "by the seat of Elon's pants", I would be very surprised if there WERE NOT massive accounting problems laying just below the surface. The reason everybody says that companies like GM and Boeing and GE are "stodgy" and "run by accountants" is that it becomes virtually impossible to know what the costs are if the accounting is unstructured - which gives the appearance that "accountants run the place".

I think there are many more shoes to drop with the Tesla story in the next year.

#Enron2.0

$35k Tesla still not here. Go thru Telsa's M3 order page and in the Details there is Destination & doc fee $1,200.

Far bigger issue is Tesla is closing all but a few retail locations and firing their retail staff because they can't afford it, so the vast majority of buyers will have to order site unseen.

And per Tesla's website, there is no demand for the base Model 3. "Estimated Delivery: 2-4 weeks." So much for the backlog.

Elon Tusk (his new twitter account name) is at it again. Announce something at a moment when your stock is at risk of falling. A $35K vehicle available as promised (maybe) versus a first quarter loss projection, SEC renewed inquiry, lawyer leaving and debt payment due.

Actually this move may cause enough of those reservation deposits to turn into firm orders and therefore build the backlog. That looks good as Tesla goes into the market to roll the debt. Its effect on profitability in the next few quarters is an unknown and it may be Tesla is taking a gamble and they'll figure it out as they go. Kind of like a tent to boost production right when they need it.

Hey Tesla, thank for the massive depreciation on the $65k 3 because now I can buy a car that looks exactly the same for almost 1/2 the price.

So assuming you can get one there are still the same issues with the Model 3. Poor build quality in essence. So you have to order this thing on line. So when there is a quality issue do you have to go on line to bring your car into a quality control center? Or do you just say screw it and go out and buy a Kia/Hyundai or a whole new crop of EV's that are now out or coming out on the market. They will look better, have more normalized interiors and be better made. Even this base Model 3 performance advantage is reduced on this version. Further it is no longer the "EV Range King" for this model. But the bottom line is with these other EV's you won't have ill fitting panels or glass or poor paint quality.

I see this as a major problem for Tesla. While reducing costs enough to sell the Model 3 at $35,000 (well $36,200) is a good thing, any benefit will be erased if sales of the Model 3 plummet due to the very non-traditional sales method. Furthermore, even with the cost reduction due to store closures, will selling the Model 3 at $35,000 be profitable for Tesla? I'm not sure it will.

This is a hugely controversial move by Tesla. If Tesla is wrong, this could mean bankruptcy or another automaker buying Tesla.

The timing couldn't be worse either. Audi's eTron is here and so is Jaguar's iPace. The new compact Audi EV SUV will debut in Geneva. Mercedes-Benz has the EQC ready for 2020. Porsche has the Taycan and possible all-EV Macan in the works.

This is an extremely move by Tesla given the competition that is here and looming on the horizon.

To consumers, there is no catch here. Not only did they deliver the $35k Model 3, but they delivered a much better car than what was promised 2 years ago. The glass panoramic roof, heated and electric folding side mirrors, and driver profiles are all standard options when they were previously part of a $5k package when announced.

For those willing to spend a little more, that $5k package now also include better performance and 264 miles of range (more than any other car $40k or less). Arguably, Tesla now has the best deal of any car for $35k, $37k, and $40. If that means closing galleries and moving funding to service centers, I'll take it.

Anyone who can't see this as a massive problem is blind or works for Tesla and just likes sucking his balls. The demand in Europe and China is well below the expectations. Order times for other model 3s has dropped to a couple weeks. So the backlog of model 3s has fallen off dramatically. Combine that with cutting costs on your hottest model shows a weakness, not a strength. Cars very rarely ever go down in price, and certainly not twice in 2 months.

Add to the fact that he is clearly in violation of the SEC sanctions with his recent twitter message and it shows that he has no regard for rules, investor's best interests or the company. If he did, he would not be acting like a 28 year old millennial.

There are way too many cars coming out that are around the corner and have gotten rave reviews so far. The new Kia Niro/Hyundai Kona have more mileage than the $35k model 3, have a better warranty, dealerships you can visit, more service stations, and a longer history of understanding manufacturing. Also, both of those vehicles has a longer range. Add to that, Audi, VW, Volvo, BMW, Mercedes, Porsche, and Honda all have new vehicles coming out within 1 to 2 years max, and there is a serious problem. The 450k order have dwindled dramatically.

Add to the fact you have to buy the base model, with ugly interior sight unseen, can't visit a showroom, can't see it at the local auto show, and you are left with more of what Tesla is, a half-ass company selling half-ass built cars. In order to get the car outside of a handful of states, you have to set up to fly somewhere or drive hours and states away to get it. It's an inconvenience that somehow who truly wants/afford a $35k might not be able to accommodate.

The Niro and Kona are $37k, don't have a better warranty, and you can get a Model 3 with more range (264 miles) and ALL premium interior features for $40k. A similar Niro/Kona is $44k and they will be missing many key Telsa features.

Cars also get delivered to your door, so no you don't have to fly anywhere and drive.

The Niro and Kona will have far better quality and there is no way to refute that.

Warranty on a Tesla is meaningless. Who wants to have their car in the shop for a month at a time. That happened to 2 co-workers of mine (Model X and Model S).

And if Tesla declares Ch 11, then what?

Dealerships add little value and mostly add hassle. I would much prefer to order online at a lower price. Dealership sales negotiation over limited inventory has moved many to email, Costco or Truecar sales process. Research online and trusted resources, see at car show or rent for real trial. Other than recalls or free service. I rarely return to dealership.

Why do you assume the online price is lower? Because that most decidedly is NOT a given.