Tuesday, June 14, 2016

[UPDATE] Tesla is gravitating Model 3 reservation holders towards buying a Model S

Tesla's product specialists announced last weekend - during the "Weeked Social" event for customers - that the electric car maker has passed the production rate of 2000 per week, electrek.co reported. Putting the company ahead of schedule since their first quarter 2016 update to shareholders indicated their plan to "exit Q2 at a steady production rate of 2,000 vehicles per week, thus laying the foundation for a strong Q3 delivery number."

The specialists also discussed the reintroduction of the Model S 60 and the positive feedback they've sensed from customers, stating that Tesla's move was aimed at lowering the price of entry to its high end Model S (starting from $66,000), thus making it attractive enough for those planning to buy a full option Model 3. It is estimated that a fully featured Model 3 - including Autopilot, AWD, Ludicrous Mode, HEPA Filter, extra range and Unlimited Supercharging package - will roughly match the price of a base Model S 60, baring in mind that the latter is currently entitled up to $10,000 in tax rebates. This confirms that Tesla is trying to gravitate some of its impatient and trendsetting Model 3 reservation holders towards buying the currently cheaper option of Model S filled with the company's latest technologies that will end up eventually in their mainstream vehicle. Last month, Tesla’s Director of Autopilot Programs Sterling Anderson indicated that the Model S and Model X "will receive the latest technologies as soon as we have it, we won’t wait for a new model to release new technology. We fundamentally choose to eschew the concept of model years..."
Additionally, the specialists at the event confirmed that the quality control process is seeing improvement, as 90 percent of the vehicles coming out of the assembly lines do not require additional work before shipping to customers. Previously, Elon Musk was personally reviewing the end of line production quality of the Model X following the third row seats recall and owners reporting problems with other features. However, he did indicate these issues will be resolved come June.
Tesla has previously stated it will " deliver 80,000 to 90,000 new Model S and Model X vehicles in 2016," while Elon Musk reiterated - after Model 3 reached almost 400,0000 reservations - that the company will aim "to produce 100,000 to 200,000 Model 3s in the second half of 2017... our 2020 target for Tesla Models volume is closer to 1 million vehicles," bringing the Fremont and Gigafactory's maximum production output to 18,000 vehicles per week.
UPDATE: Tesla confirmed our conclusion the day after by publishing a customer story about a Model 3 reservation holder who has switched his order to a Model S because he "wanted to be part of Elon Musk’s mission. And I wanted to do it now." Additionally, Tesla is now actively pitching Model S to Model 3 reservation owners by inviting them for a test drive and discussing possible trade-in options. See the email below from TMC.
"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."

1 comment :

  1. It's always been this way. Traditionally if you fully loaded a Chevy, it's price usually equalled the better equipped Buick. Nothing new here.