4 ms·

Nothing superior about offering preorders, besides the efficiency of the process (compared to a dealership model). That was me explaining why I thought the cons

by jakswa 11y ago

Nothing superior about offering preorders, besides the efficiency of the process (compared to a dealership model). That was me explaining why I thought the consumer market seems to agree. We don't have the numbers on Bolt because they don't offer preorders, but even if only 70% of the pre-orders go through with it, the Model 3 looks like it'll already be the best-selling U.S. car in its segment (small luxury).[1] Will it outsell the Bolt? It'll be amazing and exciting if they go head to head, but my guess is yes. 1: http://www.bloomberg.com/news/features/2016-03-22/how-tesla-model-3-can-complete-its-take-over-of-the-u-s-luxury-market http://www.bloomberg.com/news/features/2016-03-22/how-tesla-...

vinay427 11y ago
That makes more sense, though I don't think 70% is a conservative estimate given that 1. the deposit is fully refundable, 2. the widely-touted $7500 tax is due to expire soon after the Model 3 is released. Customers are more likely to preorder something that they believe will have a long waitlist, emphasizing the other two effects.
- jakswa 11y ago
  I can get on board with 70% being too high. It's in line with their previous reservations, and $1k is still not chump change, but it is less than original $5k the Model S reservations went for. To put things in perspective, right now there are more preorders than the annual sales of the top 3 or 4 small luxury cars combined (BMW M3, and Mercedes C-Class, etc). I can't recall ever seeing this kind of production capacity needed for a single car model, much less a luxury-class car. Exciting stuff.
  - vinay427 11y ago
    Yep, I have no trouble believing it will do very well and I'm very happy about that. In the past several decades, the auto industry has only experienced minor evolution in fuel sources with most of the focus on luxury and driving dynamics. It's time to shift into a new environment, and hopefully maintain competition from new players as well as legacy automakers that can turn their ship on course in a timely manner.

by jakswa 11y ago

vinay427 11y ago

That makes more sense, though I don't think 70% is a conservative estimate given that 1. the deposit is fully refundable, 2. the widely-touted $7500 tax is due to expire soon after the Model 3 is released. Customers are more likely to preorder something that they believe will have a long waitlist, emphasizing the other two effects.

jakswa 11y ago
I can get on board with 70% being too high. It's in line with their previous reservations, and $1k is still not chump change, but it is less than original $5k the Model S reservations went for. To put things in perspective, right now there are more preorders than the annual sales of the top 3 or 4 small luxury cars combined (BMW M3, and Mercedes C-Class, etc). I can't recall ever seeing this kind of production capacity needed for a single car model, much less a luxury-class car. Exciting stuff.
- vinay427 11y ago
  Yep, I have no trouble believing it will do very well and I'm very happy about that. In the past several decades, the auto industry has only experienced minor evolution in fuel sources with most of the focus on luxury and driving dynamics. It's time to shift into a new environment, and hopefully maintain competition from new players as well as legacy automakers that can turn their ship on course in a timely manner.