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Would Tesla lower price quicker if a bunch of cancellations happen?

HaulingAss

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Tesla should not estimate, speculate, or announce any pricing or specs until a vehicle is actually ready to delivery. It would save them all kinds of blowback.
Let's think about this from a deeper level. Because sometimes blowback is worth it (if it gets you where you want to go). As a real world example of what I'm talking about that is only tangentially related to the topic at hand:

Imagine if Thomas Jefferson, Benjamin Franklin and the other leaders of the day would have said, "We should just tell England what they want to hear. Announcing our independence will entail all kinds of blowback." Granted, this does not prove Elon took the correct path, all it shows is that sometimes blowback is worth declaring things that might not come to pass or that might cause blowback. Taking the safe way out is not necessarily the best course of action in all instances.

I want to be clear that I'm not saying that announcing the lowest possible prices was the best thing to do, simply that avoiding blowback is not necessarily the only relevant goal, especially if the company is willing to accept that blowback as a consequence of their actions or statements that may accelerate their path to completing bigger goals.

It's easy to be critical when you are not the one who invested their life savings and most of the last two decades of your sweat and tears to build something better, something that would do meaningful good in the world. Let's look at what leaders of other autocompanies have said, and what the blowback was:

Ford plans $11 billion investment, 40 electrified vehicles by 2022 | Reuters

That's what Ford announced in 2018, just four years before the goals timeline of 2022. How did they do? Here it is a full year after their target goal and they have Mach-e, the Lightning and the Transit. Am I missing any? They were supposed to have over 5 times that many of pure electric models as of 2022. Was it wrong for Ford to set an audacious goal? Where is the blowback?

GM elaborates on electric vehicle plans: 5 crossovers, 2 minivans, 7 SUVs, and more | Electrek

This is what Mary Barra annouced at the end of 2017 as their plans for 2022. Five elecrtic crossovers? Two electric minivans? Seven electric SUV's? Does the Hummer count as an SUV? If so, then they have one electric SUV, not seven, as of the close of 2022. How many electric minivans did GM have in 2022? Did they have five electric crossover SUV's by 2022? Where is the blowback on that? Was it wrong to announce an audacious goal they probably could never achieve?

I won't even get into how much more the Hummer costs (for a lot less capability) and how quickly Ford backed away from the low prices they announced for the Lightning after only selling a few handfuls. Why don't we see press articles critical of that?

Sometimes you set big goals to light a fire under the people who have to make it have to make it happen. That's what an effective leader does. Probably the biggest threat of the Cybertruck development was potential project bloat and development expenses spiraling out of control. By reminding the Cybertruck team that the Cybertruck had to be affordable, he was encouraging them to develop it without huge, unsustainable budgets. Too many projects like this just grow and grow in size, scope and expense, until there is no realistic way it could ever be put into production.

Until you run your own auto company it's difficult to understand how hard it is to bring new models to market, especially one as radically different as the clean-slate design that is the Cybertruck. The fact that it's actually here, only 4 years and 93 days after the start of development, is nothing short of a huge win. This was a task of incomprehensible size, with all odds against the team. How they did it is unknown, but I don't believe the low target price goal hurt them, if anything it helped. And when you are investing billions of dollars on a project with a very uncertain future you want all the help you can get.

Elon Musk does not have a long history of accomplishing audacious goals because he plays it safe, he succeeds because he's willing to take big risks, to push people to do things that many say is impossible.

When you, and I mean you, are the longest running CEO of any automaker in the world, the one with the most experience and the longest track record of success of any sitting CEO, then you can play it safe and show Elon the proper way to run an auto company. Until then, he's the one that that is winning this battle for the betterment of humanity, not you. You can give your opinion on how you think Elon should run the company but guess who I put more credibility in? It's about 1,000,000 to one in favor of Elon vs. you. And I mean no offense by that, it's just the way it is.

Sometimes everything is not as simple as it appears. Blowback is something Elon regularly takes for the decisions he makes, and he expects blowback. As long as those decisions keep making Tesla the fastest growing and most successful auto company of the face of the planet, I'm not going to tell him I know a better way. Because I'm smart enough to know that I don't! I'm not saying he never makes mistakes, everyone does. But I'm smart enough to know that I don't know what they are.

The proof is in the pudding. The fastest growing auto company, at least in the western world, and the company with the best-selling car in the world. It's not just luck that no other car in the world outsells the Model Y. Elon knows what he's doing, it's not luck. He does what works. If that means setting audacious goals they may not hit, so be it.
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HaulingAss

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if Tesla's only shipping to Texas and or California that’s BS. I live in Manchester Missouri, which is about roughly 10 hours from Dallas Texas. I have no problems with flying to giga Texas to pick up my cyber beast then drive back to Manchester Missouri. I made my cyber truck reservation December 24, 2019 and if someone currently living in Texas in or California reserve their Tesla cyber truck in 2020 and they received their vehicle before I do that’s not right again it’s almost pointless to make a reservation. If they only going to release these vehicles and certain regions in the US, that makes absolutely no sense to me. give us the option to fly down, pick up our vehicles and drive it back or set our own delivery service.
Relax, Tesla will only be delivering to first day reservationists for roughly a year. The Texas and California deliveries will switch to nationwide a long time before the first day reservations are exhausted.
 

CYBRSMTH

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Yeah maybe they will learn their lesson with the CT.

You notice that the M2 seems to be fairly advanced in the planning but nothing from Elon. Initially I though this was because they didn't want to cannibalize the M3 sales, but maybe this is the reason.
Yeah, don’t say it’s $25K and then it ends up costing $30K. Tesla is burning through all of their trust and goodwill.
 

cvalue13

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I pre-ordered Dec 24, 2019. It’s was a boring night at the in-laws. Subtracting from the first RN number I’m 443,XXX. Can’t remember the last 3 digits
if Tesla follows the pre-order “line” you will probably ~3 years before your number is up

if instead Tesla blows up the pre-order “line” early, then it will be a race to put down real deposits
 

Dumb Game

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Yeah, don’t say it’s $25K and then it ends up costing $30K. Tesla is burning through all of their trust and goodwill.
I got half of the down payment (401k). Wife of 26 years doesn’t think $99,000 for a ev is worth getting. I was like, “ LOOK HERE B—CH, IM 6’5”, 257lbs driving a 2000 dodge neon.” (I didn’t say that, but i definitely was thinking) ?
 


davelloydbrown

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I got half of the down payment (401k). Wife of 26 years doesn’t think $99,000 for a ev is worth getting. I was like, “ LOOK HERE B—CH, IM 6’5”, 257lbs driving a 2000 dodge neon.” (I didn’t say that, but i definitely was thinking) ?
wait a couple of years until the dust settles. Buy a used pick up to tide you over.
 

zoomer0056

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Ok so we all know a lot of us have an extra reservation for X reasons.

Some like me are on the verge of walking out mostly because of price.

Well my peeps, Tesla got 2+ million reasons to overprice. But It's a hollow demand that we created for whatever your reason.

So what if we all just cancel one of those extra spots to move that demand needle backwards a bit.

Would that make them rethink pricing?

And this might be too much to ask but what if somehow we organize to do it at the same time. You think that would grab their attention?
Let's say half canceled. That's still one million reservations. The price is not coming down anytime soon.
 

Outdoors

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Let's say half canceled. That's still one million reservations. The price is not coming down anytime soon.
Even at 15% take rate. Producing 15 to 20 a day now better turn into 500 a day quick for those later reservation holders to get in 2024.
 

Gigahorse

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Looks like they are going through all 2.5 million reservations and seeing who will bite on the Foundation series and put down another $1,000 to wait a few more years for delivery.
 

Bluepill1

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Ok so we all know a lot of us have an extra reservation for X reasons.

Some like me are on the verge of walking out mostly because of price.

Well my peeps, Tesla got 2+ million reasons to overprice. But It's a hollow demand that we created for whatever your reason.

So what if we all just cancel one of those extra spots to move that demand needle backwards a bit.

Would that make them rethink pricing?

And this might be too much to ask but what if somehow we organize to do it at the same time. You think that would grab their attention?
My Res 11282.... within an hour +/- of unveiling.
If I get not an option I can afford by next spring (2025) I will get a Rivian or a Ford Lightning.
Getting tired if being thrown in the back of the line just because I can't afford 100K + on a vehicle I ordered for 69000K 5 years ago. Yes 79000 K I can manage with my fixed income but Nothing is worth 5 Years of my life especially at 76 years of age..
I own 3 Tesla's now and like them all.
I never or hardly ever go on any day trips. So charging is 99.9999% at home. Don't need Tesla SC either.
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