Elon Musk on the Nevada Gigafactory deal: "Our goal… is to build long-term trust."

[kostby]

"There have been several articles recently implying that Tesla, through clever machinations, maneuvered Nevada into providing an overly large incentive package for the Gigafactory. I love backhanded compliments as much as the next person, but this is untrue."

...

"To understand why, one must look closely at the terms of the deal. A casual reader of stories about the Gigafactory might assume that the $1.3 billion number in the headlines means that the state wrote Tesla a huge check for that amount. In fact, Tesla has received no money from the state at all. We did receive land through a swap the state did with our developer, but, if you have been to Nevada, you will notice that there is quite a lot of extra land with nobody on it. This is not in short supply."

...

At Tesla, we believe in doing deals where both parties benefit, and, when there is an asymmetry or underperformance on our part, interpreting that in the other party’s favor. This is true for big deals like the Gigafactory and for everyday transactions. For example, if you buy or lease our car and don’t like it (within a reasonable amount of time), you can automatically give it back, accounting only for usage and damage. Tesla will absorb loss of the new car premium when reselling it as a used vehicle.

Our goal in doing so is to build long-term trust.

If people know that we will not take advantage of them and aspire to fairness, even at our own expense, then they are much more likely to want to work with us in the future.

...

 

In my opinion, many of the disgruntled owners who post here lack that 'long-term trust' in Ford, Ford dealerships, and Ford service departments, to diagnose and fix their cars.

And going forward, that 'lack-of-trust' is a much more difficult problem to solve than the technical issues causing 12-volt batteries to die unexpectedly.

 

Link to the full article: http://www.teslamotors.com/blog/house-always-wins

Edited November 21, 2014 by kostby

[plus 3 golfer]

 

In my opinion, many of the disgruntled owners who post here lack that 'long-term trust' in Ford, Ford dealerships, and Ford service departments, to diagnose and fix their cars.

And going forward, that 'lack-of-trust' is a much more difficult problem to solve than the technical issues causing 12-volt batteries to die unexpectedly.

 

Link to the full article: http://www.teslamotors.com/blog/house-always-wins

 

I agree.  

 

I'm sure that if Ford would do as Telsa states: "we believe in doing deals where both parties benefit, and, when there is an asymmetry or under performance on our part, interpreting that in the other party’s favor...For example, if you buy or lease our car and don’t like it (within a reasonable amount of time), you can automatically give it back, accounting only for usage and damage", owners trust in Ford would skyrocket.  :)  

 

If Ford can't fix a problem in a reasonable amount of time, Ford should make it easy for those with such continual, unfixed problem (dead battery) to "automatically give it (the car) back." ;)  For example, trigger the lemon law and Ford should virtually immediately not several months down the road take the car back and It shouldn't be a hassle for an owner.

 

Telsa's words are a strong statement of its commitment to customer satisfaction. Of course it's got to come at a cost.  Such cost is likely built into the purchase price.

 

I do think Ford was fair with the payment for the FE downgrades of the C-Max. But there are likely some that would rather "automatically" given the car back for Ford's "under performance" with respect to FE expectations. That would build more long term trust in Ford.  

 

IMO, as I have said before, it's up to Ford to get it right and do the right things.  Ford then will earn the long term trust of more owners. Of course, this will come at a cost to Ford.  Isn't competition great. :)   From all the survey data, it appears being around average in customer satisfaction is acceptable for Ford.  I doubt Telsa wants to be viewed as "average."

[62Lincoln]

When Tesla starts selling several million cars a year across the entire price spectrum versus a few thousand at ~$100,000+ per car, then perhaps a comparison can be made. Until then, not so much.

[plus 3 golfer]

When Tesla starts selling several million cars a year across the entire price spectrum versus a few thousand at ~$100,000+ per car, then perhaps a comparison can be made. Until then, not so much.

The point is philosophical not a comparison of products / companies but how does a company gain owners trust. It matters not what product one sells but what one does so customers gain trust in ones company - get it right, and do the right things when problems arise, IMO.

[TopherTheME]

The other thing to think about is that Tesla doesn't worth with dealers, Ford does. If you are unhappy with your car and want to give it back to Ford then that just wouldn't make any sense because Ford didn't sell it to you. You would be taking it back to the dealer at which you purchased it. Dealers have the ability to allow you to return your car if you are unsatisfied with it, they just choose not to do it because its bad for profit.

[62Lincoln]

The point is philosophical not a comparison of products / companies but how does a company gain owners trust. .

 

 And yet your post #2 is comparing Ford to Tesla. So I will repeat: When Tesla start selling several million cars a year across the entire price spectrum versus a few thousand at ~$100,000+ per car, then perhaps a comparison can be made. Until then, not so much