http://www.autobloggreen.com/2009/01/22/tesla-calls-townhall-meetings-after-email-fails-to-calm-angry-bu/It seems that even a new explanatory email from CEO Elon Musk has had little calming effect on the firestorm ignited by the increasing of prices for locked-in Tesla buyers. To avoid further damage from what is fast turning into a PR nightmare, the company is turning to a previously-successful approach and has announced a set of town hall meetings. Scheduled for the 26th and 27th at the Los Angeles and Menlo, CA stores respectively and hosted by Elon and other staff, the events can be attended in person or by phone. What, no internet hookup?
The ineffective email attempted to explain the price increases by linking the need for Tesla Motors to show they can make a profit (so they can get loans to advance the making of the Tesla "S"), with the cost of building the Roadsters originally costing far more than they would be sold for. An audit in the summer of 2007 revealed to them that their $92,000 car was going to cost $140,000 to build. Thus the eventual change of top management and the slew of other cost cutting measures that followed. Hopefully, the story will be more compelling when told in person. Don't forget to tune in next week for another episode of "As the Tesla Turns." Hit the jump now to read the email for yourself.
Email to Tesla buyers:
"A much fuller account of the history of Tesla is worth telling at some point, but for now I will just talk about the essentials of why we needed to raise prices on options. Fundamentally, it boils down to taking the tough steps that are difficult but necessary for Tesla to be a healthy company and not fall prey to the recession.
When the initial base price, for cars after the Signature 100 series, of $92k was approved by the board a few years ago, it was based on an estimated vehicle cost of roughly $65k provided by management at the time. This turned out to be wrong by a very large margin. An audit by one of the Series D investors in the summer of 2007 found that the true cost was closer to $140k, which was obviously an extremely alarming discovery and ultimately led to a near complete change in the makeup of the senior management team..."
Who would have thought the management of a GREEN company would lie about the true cost of their product. I am sure this is an isolated instance.
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