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Thought on Tesla as a "No Show" in Detroit

Thought on Tesla as a "No Show" in Detroit

Tesla has decided not to present at the upcoming 2016 North American International Auto Show in Detroit...Good Idea or Mistake??

http://www.autoblog.com/2015/12/04/tesla-skips-2016-detroit-auto-show/

http://www.cnet.com/news/tesla-third-automaker-to-pass-on-2016-detroit-a...

Son of a Gunn | 7 december 2015

Why should they go to Detroit again? The local press maligned Elon and the interview session was a car dealer setup. Tesla is three months from a major reveal. Auto shows are sponsored by dealers and Tesla makes rare appeaeances.

clublon | 7 december 2015

Tesla should display some S's and X's across the street from the auto show. See where the crowds gather.

rossRallen | 7 december 2015

@clubon: That would be hilarious! Tesla should rent a nearby a parking lot and offer some test drives as well.

aesculus | 7 december 2015

This is not new. Back in the 50's the New York Auto show and the Detroit Auto Show refused to let the foreign car vendors like MG, Porsche, BMW into their shows too. They had to create their own venues, sometimes across the street also.

Red Sage ca us | 7 december 2015

Tesla Motors can take no action in the Great State of Michigan unless it is with the express intention to support sales of new cars through 'independent franchised dealerships'.

It's The LAW.

clublon | 7 december 2015

Perhaps a local Tesla owners club could choose to hold their monthly meeting across the street from the event. (All in all, it's Michigan's loss.)

Roamer@AZ USA | 7 december 2015

Why would anyone go to Detroit for any reason. Even worse in January.

clublon | 7 december 2015

Good point! Detroit continues to be rated as America's most violent city. Then too, I now see that Oakland is rated pretty high in the violence statistics. While visiting for the Model X event, we rode the BART through Oakland pretty late at night. What was I thinking?

Ross1 | 8 december 2015

@Roamer:

Go to Detroit.
Buy a house for $1.
Be happy.

Roamer@AZ USA | 8 december 2015

With the money you save buy weapons and survival supplies......

adamgreen | 8 december 2015

The auto shows are designed to focus consumer attention and facilitate two stages of a sales cycle:
1. raise awareness
2. generate demand

Since $TSLA is not in need of near term sales motivation, the "generate demand" is wasted effort, and Tesla is a strong brand, so it doesn't need broadcast marketing.

Second, Porsche has just announced a five year program to advertise and promote Tesla globally. The wet dream of every marketing team (yes, they dream together ... they're that close ...) is to have a dominant brand endorse the market by announcing they will be entering with a competitive product. The move by VW to announce an all-electric luxury sports sedan using its Porsche brand (and best of breed engineering) that will be similar to a Model S validates the markets, so to speak. This sends a message to the competitors, the media, the OEM vendors and suppliers, the retailers, the aftermarket industry, the legislators and ultimately the consumers of the product and the investors in the industry that this just got real.

It's one thing for GM to have a gas-burning alternative electric compact sedan with quirky styling, or BMW with niche products that prove they've not understood the market (the outlandish design of their i8, i9 and i3, the limited range and utility, the lackluster performance) but when VW says it will put its sizeable 'ock on the block you know they're not proving their brand is bigger, or conducting long term research into customer sentiment, they intend this to a be a revenue positive product line in global markets.

Tesla need not fear VW, instead, they should build a sales and production office in Germany right next to VW in Wolfsburg and start selling batteries, charging systems, mobile systems (AutoPilot) and instrumentation hardware and software, gradually moving all this 2016 "Gen 1" technology into the public domain as Tesla vehicles move to Gen 2 with the arrival of the Model 3, the Y and subsequent updates of the S and X. I'm not purporting to have expertise, but if it were me, I'd keep the engineering and materials R&D proprietary. Safety sells. Crash tests cost money. Sharing is good within bounds, but when it comes to the deep capital investment in R&D, engineering, materials, construction techniques, and production automation of a vehicle that's light and capable of high percentage probability of survivability in crash tests, I think you put that in the IP war chest and keep it as a unique differentiator along with the Falcon doors, the "warp over" windshield driving experience ... sounds more interesting than wrap-over or panoramic ... these are genius caliber examples of product differentiation by customer experience. As big as they are, VW will need a decade to catch up on these fronts, and it has to start with following into the market, copying existing products and offering undifferentiated, "equal but not greater" products. And the day VW or GM or Toyota tuck their electric vehicle beta dog tails between their legs and bring a gull-winged SUV to market, or a panoramic windshield, $TSLA will be sending them Champagne as thanks.

Tesla will have the premium brand position in the market ... who else would name their product line up S3XY ? ... we're s3xy and we know it ... and thank you VW: it will throw billions of dollars (no exaggeration) at establishing the market globally. Then again, if Tesla doesn't start building X's to the X in Xmas...

carlk | 8 december 2015

@adamgreen Tesla has already established the premium brand position. You can just ask any twenty-somethings what is their dream car. It's no longer a BMW or Porsche. And all this has been achieved by without spending much marketing money.

ian t.wa.us | 8 december 2015

Well said adamgreen!

@carlk - Much marketing money? Have they spent any? Other than on Superchargers that is. ;-)

DonS | 8 december 2015

A company with a large presence can easily spend half a million dollars at a trade show to pay for booth, cartage, shipping, hotels, etc. Since the benefit of appearing is almost non-existent, I would be loath to spend all that money in the state of Michigan where the taxes would contribute to the state's coffers.

Red Sage ca us | 8 december 2015

Ross: You forgot to tell Roamer to get his change back!

AlMc | 8 december 2015

Unless they were going to unveil the model3 prototype early there is no need for TM to go to the Detroit auto Show whether it is legal or not.

Waste of time and $ IMO to go to the NAIAS.

jordanrichard | 8 december 2015

Put a 2012 S85 next to a just off the assembly line P90DL, what difference do you see.....?

What new is there to show the crowd?

Triggerplz | 14 december 2015

Hopefully the X will be at other auto shows

AlMc | 14 december 2015

Only reason to go back to the NAIAS is if Jerome was going to preannounce 4Q 'cash flow positive and reckless growth'

I miss Jerome.

MyXinTx | 14 december 2015

@ian t.wa.us I agree, since every time I consider another manufacturer for an EV, I am reminded about the SC network and realize that TM is already way ahead of the game on that, even if they eventually charge other brands for electrons.

And WOW, did I get some good feedback with this thread...

Strong Work forum colleagues...

*Hey Tesla, Fold Them Seats*