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Elon Musk: To the People of New Jersey

teslamotors.com

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Re: Elon Musk: To the People of New Jersey

#62
post #37

That's some good writing by Elon, by the way. Perhaps it went through an editor or two, for typos and such, but I have to say I find his style engaging... (Disclaimer: If I had the money I'd buy a tesla, and I am an investor.)

Perhaps it went through an editor or two I 110% percent guarantee it did. No CEO of a decent sized company would not.

Your comment reminded me of the Whole Foods guy -- a counterexample.

http://www.nytimes.com/2007/07/12/business/12foods.html?_r=0

Re: Elon Musk: To the People of New Jersey

#63
post #10

> An even bigger conflict of interest with auto dealers is that they make most of their profit from service, but electric cars require much less service than gasoline cars. There are no oil, spark plug or fuel filter changes, no tune-ups and no smog checks needed for an electric car. Also, all Tesla Model S vehicles are capable of over-the-air updates to upgrade the software, just like your phone or computer, so no v…

It is a terrific salespitch, especially in how it raises the subject of OTA updates while adroitly waltzing you past the obvious worry that a poorly tested OTA update will brick your car.

GM's latest recall (faulty ignition switch) killed 303 people and covers 1.6 millions vehicles; I think they'd love to have an OTA update method right now, even with the possibility of "bricking" the vehicle.

http://www.latimes.com/business/autos/la-fi-hy-autos-303-dea...

Re: Elon Musk: To the People of New Jersey

#64
post #10

> An even bigger conflict of interest with auto dealers is that they make most of their profit from service, but electric cars require much less service than gasoline cars. There are no oil, spark plug or fuel filter changes, no tune-ups and no smog checks needed for an electric car. Also, all Tesla Model S vehicles are capable of over-the-air updates to upgrade the software, just like your phone or computer, so no v…

It is a terrific salespitch, especially in how it raises the subject of OTA updates while adroitly waltzing you past the obvious worry that a poorly tested OTA update will brick your car.

A poorly performed service at a dealers will brick your car too.

We trust the manufacturer to correctly service our cars, manually or OTA.

Re: Elon Musk: To the People of New Jersey

#66
post #2

I'm not opposed to what Musk is trying to do but how or why are auto dealers a monopoly? Those direct sales laws were originally created to preserve small business.

This Planet Money episode[1] gives a interesting of the history of autodealers, with some additional info regarding the latest twists that had come up due the fiscal crisis too. [1] http://www.npr.org/blogs/money/2013/02/12/171814201/episode-...

That's a fairly one-sided view on the situation. Just some random points:

* Saturn tried the "no-haggle" new car buying experience. People generally liked this, though Saturn doesn't exist anymore.

* "closing a dealer is hard". Dealers have to pay for the land they own. The cars on their lot tend to be bought with money from the bank (a bank really owns the cars). The dealers just have to pay insurance/interest on the cars. The longer a car is on the lot, the more insurance and interest the dealer has to pay. If a dealer isn't selling cars to pay the bills, they will shutdown.

* Dealership "look". My knowledge is only from Texas.... Some brands, like Lexus and Cadillac set some very strict looks for the dealership. Specific signage, layout, etc... A manufacturer can set standards the dealer must live up to. Also, if a dealership ranks below a certain score on their customer surveys, the manufacturer can close them down.

* Pricing... yes, a middle man increases the cost of something. But that middle man can help explain features, is there to help deal with problems, and as they tend to be more locally rooted than an auto-maker, will try (hopefully) try harder to please their customers. Why do we have to pay real-estate agents so much? Good agents really help a buyer, same could (hopefully) be said for a car sales person.

* (edit addition) Why are sales people jerks? This will heavily depend on the dealership you are dealing with. Management of a dealership does a lot to shape the experience for their customers. A few things: sales people are paid a % of the money they hold over the cost of the car, so they are financially incentivized to keep the car price high. A car that has been on a lot for a long time has incentives added to it for a sales person. Sales people get bonuses based on number of cars sold. Sales people sometimes get bonuses based on their customer surveys (or are required to keep a certain average or be fired). Dealers are allocated new shipments of cars based on past sales, so a lot of dealers want to sell as many cars as possible (if they are trying to grow); dealers that don't care about growing will be less flexible about pricing.

Though, I agree that the car buying experience should adapt as information about cars is more easily accessible, it would require all of the states redoing the state auto franchise laws.

Re: Elon Musk: To the People of New Jersey

#67
post #15

Earlier quoted context omitted.

Government does not respond to a passive arrangement where you "vote for ethics" every so often. You have to participate more actively. This involves work.

Lets keep the discussion positive. Understand I'm not a political science major or a fancy debater, I don't claim to poses more than average intellegence, I'm just asking a question, hoping someone with more knowledge on the matter has an answer. After working to provide for the family I don't have a lot of free time to commit to politics if that's what you mean by 'participate more actively', is that the only course…

Do you contact your congressman, local government, or other representative body about how you want them to vote on any particular law? They're a phone call away.

Re: Elon Musk: To the People of New Jersey

#68
post #24

His best line: > The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures 'consumer protection'. If you believe this, Gov. Christie has a bridge closure he wants to sell you! Unless they are referring to the mafia version of 'protection', this is obviously untrue. Nicely done, Elon. Nicely done.

This really is one of the nicest pieces of PR -- corporate, political or nonprofit -- I've seen in a while; I appreciate how he starts off with a soft pitch ("the auto dealer franchise laws were originally put in place for a just cause") and only shoves the knife in once he's got the reader in agreement. Beautiful writing.

Re: Elon Musk: To the People of New Jersey

#70
post #10

> An even bigger conflict of interest with auto dealers is that they make most of their profit from service, but electric cars require much less service than gasoline cars. There are no oil, spark plug or fuel filter changes, no tune-ups and no smog checks needed for an electric car. Also, all Tesla Model S vehicles are capable of over-the-air updates to upgrade the software, just like your phone or computer, so no v…

Tesla's site is a bit frustrating. I get most of those same benefits driving a Nissan Leaf. So I'm not really interested in a "true cost" comparison to a gas vehicle I wouldn't be buying anyways.

Turns out the Model S at $1,466 as optioned is more expensive than a Leaf. :) Not that I wouldn't kill for a 300 mile range...

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