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If everything goes right, Model 3 can change the business model of cars. Shift to value add + functionality upgrade based pricing versus a sales and service ori

If everything goes right, Model 3 can change the business model of cars. Shift to value add + functionality upgrade based pricing versus a sales and service oriented model.

threeseed 9y ago
I don't see this happening. Look at computers or the home CE market. We've moved away from buying something once and then upgrading it over a period of time. Instead consumers are attracted to new devices, with more features and most importantly a refreshed design. When you have plastics that age, seats that wear and parts that fail people are always going to want to buy a new car instead of adding new features to an old one.
- martin-adams 9y ago
  I feel that the portable market changed the buying habit. The race to make things smaller, lighter and more powerful won over the benefits of modularity. I do agree that the mindset shift will also apply to cars. The difference is cars have a stronger resale market than tech.
- hypersoar 9y ago
  Buying a new $700 phone every couple years is a very different thing from buying a new $40,000 car because you can't get it fixed.
  - chronic8k 9y ago
    > Buying a new $700 phone every couple years is a very different thing from buying a new $40,000 car because you can't get it fixed. Isn't that what they said about the iPhone when it was first released? Perhaps your income level is less than the target market segment for the Tesla Model 3.
  - am1988 9y ago
    Especially when most people are insulated from the cost of the phone. A car is a major purchase. It's the most expensive thing most people own other than a house.
randyrand 9y ago
Also they own the repair market. You can't get your tesla serviced at a normal shop as the software, parts, and diagnostics are proprietary, so they could actually sell the car at a loss and make the big bucks on repairs. I don't want this. But its a viable business model.
- ArloL 9y ago
  Actually this is the way most manufacturers already work today. That's why they are so slow to shift to electric - less spare parts.
- Tomte 9y ago
  Won't fly in Europe. They will have to open up all their diagnostics and special tools.
  - zild3d 9y ago
    isn't it already flying in europe?
- agumonkey 9y ago
  The parts were supposed to be reduced compared to an ICE. What kind of important parts would they service ? (open question) Proprietary diagnostics is not surprising, not a lot of cars right now have that amount of electronics and software, it's probably reverse engineering to get a glimpse of the car brain on your own.
  - TheSpiceIsLife 9y ago
    From what I've heard Telsa vehicles rare in for warranty repairs at a higher rate than most other new vehicles. "The main problem areas involved the drivetrain, power equipment, charging equipment, giant iPad-like center console, and body and sunroof squeaks, rattles, and leaks." The most common problems involve replacement of the electric motors, warped brake rotors, door handles that fail to slide out as a driver approaches, and numerous squeaks and rattles, which may be more apparent given the very quiet nature of electric propulsion. Other problem areas cited by Tesla owners are leaking cooling pumps for the battery pack, dead windshield wipers, persistent alignment issues with the wheels, and misaligned latches for the front trunklid and the rear liftgate. Thus far, all such problems have been handled under Tesla's four-year/50,000-mile warranty (it's eight years and unlimited mileage on the powertrain)--and owners appear to be pleased with the level of attentiveness and customer service they have received. But Consumer Reports notes that once the car is out of warranty, such problems could become expensive for owners of older Teslas to fix. http://www.greencarreports.com/news/1100561_tesla-model-s-too-many-problems-to-recommend-consumer-reports-says http://www.greencarreports.com/news/1100561_tesla-model-s-to...

If everything goes right, Model 3 can change the business model of cars. Shift to value add + functionality upgrade based pricing versus a sales and service oriented model.

threeseed 9y ago

I don't see this happening. Look at computers or the home CE market. We've moved away from buying something once and then upgrading it over a period of time. Instead consumers are attracted to new devices, with more features and most importantly a refreshed design. When you have plastics that age, seats that wear and parts that fail people are always going to want to buy a new car instead of adding new features to an old one.

martin-adams 9y ago
I feel that the portable market changed the buying habit. The race to make things smaller, lighter and more powerful won over the benefits of modularity. I do agree that the mindset shift will also apply to cars. The difference is cars have a stronger resale market than tech.
hypersoar 9y ago
Buying a new $700 phone every couple years is a very different thing from buying a new $40,000 car because you can't get it fixed.
- chronic8k 9y ago
  > Buying a new $700 phone every couple years is a very different thing from buying a new $40,000 car because you can't get it fixed. Isn't that what they said about the iPhone when it was first released? Perhaps your income level is less than the target market segment for the Tesla Model 3.
- am1988 9y ago
  Especially when most people are insulated from the cost of the phone. A car is a major purchase. It's the most expensive thing most people own other than a house.

randyrand 9y ago

Also they own the repair market. You can't get your tesla serviced at a normal shop as the software, parts, and diagnostics are proprietary, so they could actually sell the car at a loss and make the big bucks on repairs. I don't want this. But its a viable business model.

ArloL 9y ago
Actually this is the way most manufacturers already work today. That's why they are so slow to shift to electric - less spare parts.
Tomte 9y ago
Won't fly in Europe. They will have to open up all their diagnostics and special tools.
- zild3d 9y ago
  isn't it already flying in europe?
agumonkey 9y ago
The parts were supposed to be reduced compared to an ICE. What kind of important parts would they service ? (open question) Proprietary diagnostics is not surprising, not a lot of cars right now have that amount of electronics and software, it's probably reverse engineering to get a glimpse of the car brain on your own.
- TheSpiceIsLife 9y ago
  From what I've heard Telsa vehicles rare in for warranty repairs at a higher rate than most other new vehicles. "The main problem areas involved the drivetrain, power equipment, charging equipment, giant iPad-like center console, and body and sunroof squeaks, rattles, and leaks." The most common problems involve replacement of the electric motors, warped brake rotors, door handles that fail to slide out as a driver approaches, and numerous squeaks and rattles, which may be more apparent given the very quiet nature of electric propulsion. Other problem areas cited by Tesla owners are leaking cooling pumps for the battery pack, dead windshield wipers, persistent alignment issues with the wheels, and misaligned latches for the front trunklid and the rear liftgate. Thus far, all such problems have been handled under Tesla's four-year/50,000-mile warranty (it's eight years and unlimited mileage on the powertrain)--and owners appear to be pleased with the level of attentiveness and customer service they have received. But Consumer Reports notes that once the car is out of warranty, such problems could become expensive for owners of older Teslas to fix. http://www.greencarreports.com/news/1100561_tesla-model-s-too-many-problems-to-recommend-consumer-reports-says http://www.greencarreports.com/news/1100561_tesla-model-s-to...