5 ms·

I was about to quote that myself. While it's true that their luxury models help fund newer models, it's rather odd to state that in a press release. It comes ac

by biot 10y ago

I was about to quote that myself. While it's true that their luxury models help fund newer models, it's rather odd to state that in a press release. It comes across as: "Please pay too much for this vehicle and help subsidize someone else's future purchase."

ceejayoz 10y ago
Which can be effective, if marketed properly. See carbon credits and marketing products as carbon-neutral for an example.
incongruity 10y ago
Sure, but even phrased that way, it differentiates it from some other potential substitute brands – Audi, BMW, etc. where there's no stated effort to produce a car "for everyone else." It may well help shift the brand reputation from luxury for profit to something like next-generation or innovation and progress.
mikeash 10y ago
I would read it more like: "I know several hundred thousand of you are eagerly anticipating the Model 3. Don't worry, we're still working hard to get it out, this is part of it, not a distraction from getting your cars to you."
soared 10y ago
"Your purchase will allow more consumers to make a similar, energy-saving, green purchase" Its a value-add of sorts, the money you give Tesla goes not to a massive car company, but to other consumers who have similar values to yours.
njharman 10y ago
"subsidize someone else's future purchase" Not what it says at all. And you'd have to be pretty oblivious to how companies, esp growing ones, operate (which I'll give you the average American probably is) to take it that way. The models sold today are subsidising the research, design, cost of operations(salaries) that lead to a model 3 launch. Tesla is feeding it's profits back into growth. Same as all growing companies do.
- biot 10y ago
  I get that it doesn't actually say that, but it has that vibe. Compare "All profits from the sale of these models help fund R&D of the model 3, which will be smaller and more affordable" to "We can't produce a small, affordable model without your expensive purchase". These are functionally equivalent statements but vastly different in tone: one focuses on "funded by profits" the other focuses on "expensive purchase".
manicdee 10y ago
"By buying this vehicle you become part of an elite whose ostentatious consumption is allowing poor people to buy cars too."
tbabb 10y ago
It seems a strategic error from a sales perspective. Why call attention to the fact that the car is expensive? They could have pointed out that the car funds the Model 3 without highlighting the high price.
- Shorel 10y ago
  Totally. Look at what happened to Chivas Regal sales after 1909.
- jsight 10y ago
  I get your point, but I think they are going for a slightly different strategy here. This is the highest trim level for them, produced in limited quantities and is being sold in part based upon its relatively exclusive nature. Highlighting the price difference doesn't always hurt luxury products.
nathan_long 10y ago
> It comes across as: Please pay too much for this vehicle and help subsidize someone else's future purchase." "... See, you're not just being a rich snob buying expensive cars, but funding a future wave of electric cars for the masses that will help save the world from global warming. So you can feel good about yourself." That's what I think they're implying.

by biot 10y ago

ceejayoz 10y ago

Which can be effective, if marketed properly. See carbon credits and marketing products as carbon-neutral for an example.

incongruity 10y ago

Sure, but even phrased that way, it differentiates it from some other potential substitute brands – Audi, BMW, etc. where there's no stated effort to produce a car "for everyone else." It may well help shift the brand reputation from luxury for profit to something like next-generation or innovation and progress.

mikeash 10y ago

I would read it more like: "I know several hundred thousand of you are eagerly anticipating the Model 3. Don't worry, we're still working hard to get it out, this is part of it, not a distraction from getting your cars to you."

soared 10y ago

"Your purchase will allow more consumers to make a similar, energy-saving, green purchase" Its a value-add of sorts, the money you give Tesla goes not to a massive car company, but to other consumers who have similar values to yours.

njharman 10y ago

"subsidize someone else's future purchase" Not what it says at all. And you'd have to be pretty oblivious to how companies, esp growing ones, operate (which I'll give you the average American probably is) to take it that way. The models sold today are subsidising the research, design, cost of operations(salaries) that lead to a model 3 launch. Tesla is feeding it's profits back into growth. Same as all growing companies do.

biot 10y ago
I get that it doesn't actually say that, but it has that vibe. Compare "All profits from the sale of these models help fund R&D of the model 3, which will be smaller and more affordable" to "We can't produce a small, affordable model without your expensive purchase". These are functionally equivalent statements but vastly different in tone: one focuses on "funded by profits" the other focuses on "expensive purchase".

manicdee 10y ago

"By buying this vehicle you become part of an elite whose ostentatious consumption is allowing poor people to buy cars too."

tbabb 10y ago

It seems a strategic error from a sales perspective. Why call attention to the fact that the car is expensive? They could have pointed out that the car funds the Model 3 without highlighting the high price.

Shorel 10y ago
Totally. Look at what happened to Chivas Regal sales after 1909.
jsight 10y ago
I get your point, but I think they are going for a slightly different strategy here. This is the highest trim level for them, produced in limited quantities and is being sold in part based upon its relatively exclusive nature. Highlighting the price difference doesn't always hurt luxury products.

nathan_long 10y ago

> It comes across as: Please pay too much for this vehicle and help subsidize someone else's future purchase." "... See, you're not just being a rich snob buying expensive cars, but funding a future wave of electric cars for the masses that will help save the world from global warming. So you can feel good about yourself." That's what I think they're implying.