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Kickstarter idea taken to a ´ludicrous' dimension

Kickstarter idea taken to a ´ludicrous' dimension

https://mobile.twitter.com/elonmusk/status/716089404985487361

Close to a quarter billion free loan... and more to come! At an estimated sales price of 42K, by now the 232'000 reservation number equals roughly a total of 10 billion in sales. I'm in awe!

sbeggs | 02. april 2016

@WattsThatGrin,

And the ludicrous thing about this campaign is that we're all grinning at giving a company the funding!

david | 02. april 2016

This is clearly the tipping point at electrics going mainstream which is great news for those of us that already drive electric and humanity in general. By 2018 there will be at least 3, maybe 4, manufacturers (200mi Leaf next year, Bolt, BMW has several 200mi+ electrics coming, VW's next gen, etc) with a sub-$40k 200mi electric.

When even 5% of new cars sold are electric, I think you will see EVERY hotel offering level 2 charging. In a few years you won't even check anymore because it will be like advertising your hotel has Wifi-what was once cool is now just expected.

I'm hoping that these extremely strong pre-orders embolden Tesla to do another equity raise which is wise given the stratospheric stock price and use that money to start construction NOW on more superchargers, gigafactory #2 and manufacturing plant #2. And I hope Tesla uses those new factories as a political club to beat down the hold out anti-Tesla states.... and to hire a small army of lobbyists to end the dealer laws federally.

Red Sage ca us | 05. april 2016

Tesla Motors has apparently hired a small army of lawyers to combat the legality of States preventing them from selling direct. I had predicted they might do so, around Q1 2016, to head off the inherent ambiguity, randomness, and flat out unfairness of the de facto ban on their sales model through protectionist legislation in favor of 'independent franchised dealerships' that exists nationwide. They must get this cleared up ahead of the release of Model ☰ so that their Distribution of new cars can move forward unabated, unblocked, and unhindered. The means by which they have chosen to issue the challenge seems to be rather smart: by using established legal precedent, and stating that the same principles should apply in their situation as well. Even considering the glacial rate of progress that pervades the legal corridors, an 18-month head start should be enough to get their case heard, and a decision rendered. Let's hope so.

“It is widely accepted that laws that have a protectionist motivation or effect are not proper,” Todd Maron, the auto maker’s chief counsel, said in an interview. “Tesla is committed to not being foreclosed from operating in the states it desires to operate in, and all options are on the table.” -- WSJ
www wsj com/articles/tesla-weighs-new-challenge-to-state-direct-sales-bans-1459189069

Michigan enacted its no-direct-sales law in 2014, and Tesla's response, as we reported earlier this year, was to apply for a dealership license last November. Tesla is also fighting in Indiana, where legislators pushed a similar bill to prohibit direct-to-consumer sales earlier this year. General Motors helped to push that effort, saying Tesla shouldn't get "special" rules to distribute its cars. -- Autoblog
www autoblog com/2016/03/30/coffins-teslas-electric-vehicles-sales/

Chunky Jr. | 05. april 2016

I don't understand how a Tesla Store isn't considered a dealership by the states that require them. Is it because they don't have cars on a lot to sell?

Hi_Tech | 05. april 2016

@Chunky Jr - I think it's to do with dealership licensing, which would get them into other issues with conflict of interest or laws about auto manufacturers not being allowed to have dealerships... also could have to do with auto dealership unions... etc.
Much rather just have them as direct sellers from the company. Don't want to have to have the show-rooms be a separate entity, etc.

SUN 2 DRV | 05. april 2016

A dealer is almost by definition a separate entity from the manufacturer. These laws say that an auto manufacturer isn't allowed to own a dealership, originally intended to prevent a manufacturer from competing directly (aka unfairly) with their dealer channel. But since Tesla doesn't have any dealers, that law shouldn't apply to them but local dealer groups are stil trying to use those laws for protection.

Red Sage ca us | 07. april 2016

I don't believe any of the States denied Tesla Motors a dealership license prior to 2013, when NADA first began to make a stink. That is, during the years that the Tesla Roadster was all they had to offer, in low volume, and it took three years to build, sell, and deliver around 2,500 cars... They had a dealership license wherever it was required. But after the Model S arrived, and began to sell rather well, certain states refused to renew those dealership licenses. Some wouldn't say why. Others just told them, "No." Originally, it seemed that in most States there was no issue as long as Tesla Motors did not have a Franchise they were competing against. Idunno about you guys, but I would be rather peeved if a Buick dealership could prevent me from releasing my RedMobiles through a direct sales model.

PeterPlt | 07. april 2016

I think the existing sales model (the internet and localized stores are currently working well, pun intended) will work fine for the next three to five years, as the backlog is likely to continue to outpace production's ramp up.

The real investment must be in the Service Centers (facilities, staff and parts inventories) to be ahead of the support demand for the influx of cars. Service Centers tend not to be regulated, so their development should not be constrained. If Tesla wants to keep the tidal inflow going, their reputation will be made or damaged by support.

PBEndo | 07. april 2016

I am willing to be a Tesla Dealer (i.e. listed as the dealership owner) for a Tesla dealership near my place of residence. All I need is a turnkey dealership-in-a-box (i.e. a PC that can access the Tesla ordering page) and a physical address (unused utility closet in my office). I demand the salary of $1/year and a handshake deal from Elon. Oh, and early access to new models.

Red Sage ca us | 07. april 2016

PBEndo: Excellent! Though, I hope you are not in the Great State of New Jersey where, ahead of concessions that allowed Tesla Motors to operate there, made changes to everything that defines an 'independent franchised dealership' to effectively double the minimum size lot, showroom staff, and service department stalls. I believe they did that at the behest of dealers, who didn't want any Tesla Motors fans doing exactly what you suggest.