Musk: No More Discounts on New Teslas

Electric carmaker Tesla Motors Inc. Chief Executive Elon Musk told employees in an email to follow company policy of not offering discounts on new cars, responding to some investors’ concerns about the practice.
In a Twitter message, Musk said “corrective action” had been taken on discounting of new vehicles, which “seems to be limited to a small number of cases.”
Musk’s email to employees was included on Wednesday in a response to comments on a Reddit posting of someone questioning the discount policy.The Tesla boss said, “It is absolutely vital that we adhere to the no negotiation and no discount policy that has been true since we first started taking orders 10 years ago.”
Musk said there could be discounts to floor models, vehicles that had been used for testing or those that were damaged in delivery.
“However, there can never — and I mean never — be a discount on a new car coming out of the factory in pristine condition, where there is no underlying rationale,” he said. Musk was responding to a research note published on Tuesday by analyst Brad Erickson of Pacific Crest Securities that criticized Tesla for offering discounts on Model S sedan inventory cars, not those built-to-order for specific customers, to boost third-quarter sales.
“We found Tesla has been employing a deeper discounting formula to drive sales of inventory models, with all offers expiring this Friday, the last day of the quarter,” Erikson wrote.
Erickson said he “detected aggressive Model S discounting at U.S. sales centers to maximize third-quarter deliveries.”
Deliveries for the quarter will be about 22,000, said Erickson, up 90 percent from a year earlier.
Mike Ramsey, automotive analyst with Gartner Inc., said discounts on Model S vehicles have been few, and that it was “inevitable” that the car, which debuted in 2012 and often sells at $100,000, would eventually be discounted.
“There isn’t unlimited demand for $100,000 vehicles,” he said, although he noted that Musk is adamant about no routine discounts for both customers and employees. Musk said in the email that the current quarter “is likely to be the best ever in Tesla history.”
Tesla has posted an operating loss in 14 consecutive quarters and negative cash flow since early 2014. It is facing a cash crunch at a time when it seeks to purchase its money-losing sister company, SolarCity Corp.
The average September U.S. new vehicle discount industrywide is about $3,900, the highest since December 2009, J.D. Power said this week.
(Reporting by Bernie Woodall; Editing by Bill Trott and Dan Grebler)
Approximate price: $22
We value our customers and so we ensure that what we do is 100% original..

With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.