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dgpcolorado
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Re: TSLA corporate outlook

Wed Aug 01, 2018 10:54 am

GRA wrote:...
Tesla Ranks Last Place In Auto Dealership Index
https://insideevs.com/tesla-ranks-last-place-in-auto-dealership-index/

. . . In a dealership study published by the Pied Piper Management Company, covering the rankings of particular car dealerships from a customer’s standpoint, Tesla didn’t fare so well. The U.S based car company ranked dead last (34th out of 34) out of the auto brands included in the survey. Rankings are made by evaluating how helpful each company’s salespeople are to customers. tesla also experienced one of the survey’s biggest year-to-year declines, prompting a lot of questions for the management staff. . . .

This year’s top rank is taken by Audi. According to the study, Audi salespeople were most likely on average to ask customers questions to determine how a vehicle would be used, then helping them out pick a particular model. Additionally, Audi’s salespeople are also most likely to provide a “walkaround demonstration” that showcases vehicle benefits and features to customers directly, helping said customers to distinguish particular models within the brand and the competition. German car company dealership salespeople are also more likely to ask follow-up questions, helping better understand their customers’ needs and to provide them with particular reasons and motivation for why they should buy from their specific dealership.

The rankings have – following Audi – Lexus in the second place, followed by Toyota, Mercedes-Benz, Infiniti, and RAM. As for the brands that improved most on a year-to-year basis are Audi, Jeep, and GMC. Headlining those that fell off are Tesla, infinity, and Porsche. . . .

To be fair on Tesla, the company never moved in the same direction as other automakers did with their dealerships. Tesla doesn’t sell through them. They sell vehicles through their own website and their own company-owned stores, essentially giving them full control over the entire buying process.

    “They are not on commission and they will never pressure you to buy a car,” Musk said of Tesla salespeople. “Their goal and the sole metric of their success is to have you enjoy the experience of visiting so much that you look forward to returning again.”

It seems that Tesla needs a long and hard overhaul of their sales tactics. More emphasis needs to be put into sales employee training. While this may not be code red for thcarmakerer, it still paints a rather worrying picture. After all, the sales experience is a big factor on whether customers come back for their second, third or fourth car. And with more legacy car maker, the ones with strong and budding ties between their dealerships and customers, come into the EV market, Tesla might find itself in a rather precarious position overall.
This is just silly. I'd be concerned if Tesla DIDN'T come in last in a dealership sales study. If Tesla used dealership-style sales tactics at their stores, that would be a problem.
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jlv
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Re: TSLA corporate outlook

Wed Aug 01, 2018 11:51 am

dgpcolorado wrote:
GRA wrote:
Tesla Ranks Last Place In Auto Dealership Index
https://insideevs.com/tesla-ranks-last-place-in-auto-dealership-index/
It seems that Tesla needs a long and hard overhaul of their sales tactics. More emphasis needs to be put into sales employee training. While this may not be code red for thcarmakerer, it still paints a rather worrying picture. After all, the sales experience is a big factor on whether customers come back for their second, third or fourth car. And with more legacy car maker, the ones with strong and budding ties between their dealerships and customers, come into the EV market, Tesla might find itself in a rather precarious position overall.
This is just silly. I'd be concerned if Tesla DIDN'T come in last in a dealership sales study. If Tesla used dealership-style sales tactics at their stores, that would be a problem.

The better quote from the article:
When Business Insider asked for comment, a Tesla representative referred them to a 2016 tweet from CEO Elon Musk, commenting on the 2016 customer satisfaction survey from the Pied Piper, in which Tesla ranked 33rd out of 33 brands.

“Tesla finishes last in being salesy! Good,” Musk said.

That whole "It seems that Tesla needs" paragraph just shows that the writer at InsideEVS just doesn't get it.


A slightly better version of this article (minus that clueless last paragraph) appeared a few days ago in several outlets. E.g.,
https://www.businessinsider.com/tesla-r ... le-2018-7/
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GRA
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Re: TSLA corporate outlook

Wed Aug 01, 2018 6:49 pm

dgpcolorado wrote:This is just silly. I'd be concerned if Tesla DIDN'T come in last in a dealership sales study. If Tesla used dealership-style sales tactics at their stores, that would be a problem.

I disagree. To me, this is the relevant paragraph:
According to the study, Audi salespeople were most likely on average to ask customers questions to determine how a vehicle would be used, then helping them out pick a particular model. Additionally, Audi’s salespeople are also most likely to provide a “walkaround demonstration” that showcases vehicle benefits and features to customers directly, helping said customers to distinguish particular models within the brand and the competition. German car company dealership salespeople are also more likely to ask follow-up questions, helping better understand their customers’ needs<snip>

The bolded areas are exactly the ones that have the least to do with the typical car dealership sales experience, and the ones that provide the greatest value to the customer. They are the things I did when I used to sell AE equipment. Even though I was working on straight commission, I never acted or thought of myself as a 'Salesman', trying to upsell a customer on things they didn't need. I thought of myself as a customer service rep, trying to give them the information they needed that would help them choose the best possible options that fit their needs at the lowest possible cost to them, not what I was trying to move at any given time that would make me the most profit.

Tesla's customer service model is supposed to be the same, i.e. no high-pressure sales tactics, just providing the customer with the info they want and need to make a good choice. If they aren't managing to do that (and complaints about service centers have been on the rise at TMC as Tesla has had to expand rapidly), then the only remaining sales advantage Tesla has is the lack of haggling as if you were in some Moroccan bazaar. That's no small advantage, but Tesla should (and used to) provide a lot more.
Last edited by GRA on Thu Aug 02, 2018 3:20 pm, edited 1 time in total.
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Re: TSLA corporate outlook

Wed Aug 01, 2018 7:13 pm

Via IEVS:
Tesla Posts Q2 2018 Earnings Results
https://insideevs.com/tesla-posts-q2-2018-earnings-results/

. . . Financial results for the second quarter of 2018 are as follows:

    Revenue of $4 billion
    Loss of $3.06 per share

That’s significantly higher than the predicted loss of just $2.71 a share. . . .

Gross margin per car sold was 20.6% GAAP, considerably below Q2 2017 at 27.9% (presumably owing to lower margins on Model 3 than S/X). Gross margin on energy sales and storage was also down significantly YoY, from 28.9% to 11.8%.

In July 2018, Model 3 not only had the #1 market share position in its segment in the US, it outsold all other mid-sized premium sedans combined, accounting for 52% of the segment overall. . . .
Guy [I have lots of experience designing/selling off-grid AE systems, some using EVs but don't own one. Local trips are by foot, bike and/or rapid transit].

The 'best' is the enemy of 'good enough'. Copper shot, not Silver bullets.

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Re: TSLA corporate outlook

Thu Aug 02, 2018 11:41 am

I have to say this tickled my funny bone :lol:

TSLA shorts have a bigger loss in the last day than Tesla did last quarter :shock:
https://www.marketwatch.com/story/tesla-short-sellers-are-sitting-on-a-more-than-1-billion-paper-loss-after-stock-rally-2018-08-02
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LTLFTcomposite
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Re: TSLA corporate outlook

Tue Aug 07, 2018 12:35 pm

Wow... going private?
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Zythryn
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Re: TSLA corporate outlook

Tue Aug 07, 2018 12:43 pm

LTLFTcomposite wrote:Wow... going private?


Looks like a serious consideration.
I like many of the benefits of this. I always hated the ‘business for the quarterly report’ trap many companies fall into.
https://www.tesla.com/en_GB/blog/taking ... edirect=no
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Re: TSLA corporate outlook

Tue Aug 07, 2018 12:53 pm

I wonder who would be putting up that kind of money? Apple or Google? Or some consortium? IDK how this stuff works, but I do know how it works if you were dumb enough to be short.
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jlv
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Re: TSLA corporate outlook

Tue Aug 07, 2018 1:27 pm

Just before Elon's tweet, there was news that the Saudi Arabia Sovereign Wealth Fund invested $2B in Tesla.
https://www.cnbc.com/2018/08/07/tesla-s ... as-2-.html

Also, they don't need to buy every outstanding share at $420 each; only those that people want to sell. So the entire cost of the buyout might be as little as $20B (rather than the whole $70B+).
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Re: TSLA corporate outlook

Tue Aug 07, 2018 1:31 pm

LTL
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