Sunday, July 31, 2016

Elon isn't selling cars...he's selling beliefs...

Elon isn't selling cars...he's selling beliefs...

I remember that hot humid Missouri summer day like it was yesterday. Just home from college I came across a classified ad in the local newspaper: JUST RETIRED MUST SELL CLASSIC CAR COLLECTION. Intrigued I drove several miles to the retiree's home and as I rolled up the dusty gravel driveway I noticed a shiny wet black 70' Chevelle SS454 with white racing stripes glimmering from the sun's rays reflecting off the body as they broke through the overhead branches of the 100 year old oak tree.
The retiree keenly focused on how GM made this vehicle a legend. As I ran my hand down the beautiful curvy lines of the massive car body he told me about the 12 coats of lacquer paint he recently had applied. As I was revved and watched the front end try to lift up off the ground, as if the engine was trying to break free of the engine mounts, he screamed over the engine roar how he had the big block rebuilt and bored out to a 468 coupled with a fire breathing Edelbrock carb. As I inhaled the intoxicating fuel and exhaust fumes and relaxed in the comfortable front bucket seat he pointed out how he has receipts for the $1000's he spent redoing the entire interior. 
As he signed over the title he quickly mumbled a laundry list of disclaimers that would of cause any rational human being to quickly stop, turn around and run away: "Numbers don't match, has no power steering, no radio, no heater core, no AC, has rust bubbles starting to popup on truck lid and rear quarter panels, gets 5 MPG, will overheat once you turn it off so allow an hour before you can restart the motor..."
But it was too late for logic and reason for I was already in love...that day I didn't buy a car...I bought freedom.
What Elon has accomplished over the past several weeks is nothing short of legendary. Evident by the Tesla 3 nomenclature, Elon's goal was to create a disruptive competitor to the annual class leader BMW 3 Series. Not only is the Tesla 3 outselling the BMW 3 series with already nearly 400,000 orders...in fact Elon has sold more Telsa 3s in nearly four weeks than US BMW 3 Series sales for 2013, 2014, 2015 and 2016...combined.
What is driving 100's of 1000's of new Tesla owners to put down deposits and most likely wait years for their car? What drives the Tesla employees to passionately work stressful hours for relatively lower pay? Most would say it has to be how Tesla is making these cars with revolutionary safety and performance like 5.4 safety ratings,bioweapon defense mode air filtrationautopilot and blazing performance besting the worlds best super/hyper cars.
Not exactly...
Elon's secret to his sales success is actually revealed in the first three minutes of theTesla 3 presentation. Elon essentially sells you on the belief that if you buy a Tesla you are not only saving the world from impending environmental disaster but saving tens of thousands lives annually. 
Yet Tesla's competitors still don't get it. They think that if they beat Tesla to the marketor focus on range anxiety they will beat Tesla. They have actually placed ads poking fun at Tesla regarding availability and range anxiety
I'm sorry but availability and range anxiety is how you make a car and not why you made one in the first place.
This tone deafness has resulted in Leaf sales over the past six years are just half of four weeks of Tesla 3 sales and worse yet six years of Volt sales are tracking 25% of Tesla 3 sales to date
GM CEO, Mary Barra, I know it's a tall order, but GM better come up quick with a more compelling belief than saving the world from environmental doom or a growing legion of Tesla believers will be renaming the Chevy Volt/Bolt...the Chevy Dolt. 
(I want to thank Simon Sinek for his insight.)

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