Tesla’s used car division is transforming how people buy vehicles, and they are not resorting to “wacky waving inflatable arm flailing tube men” to do so. Tesla’s Director of Sales and Delivery Operations, Jimmy Douglas, told Electrek that he doesn’t need the attention-grabbing inflatables to beat the online used car giants.
Tesla seemingly stumbled into a brilliant plan to sell its used cars. In 2019, the electric vehicle trailblazer announced that it would not allow people who leased their Model 3s to sell them after; instead, the vehicle must be returned to the dealership. The original plan was to retrofit these previously loved cars to become the RoboTaxi. The RoboTaxi program, a fully autonomous vehicle that would take over the ridesharing sector, is still under development, so now Tesla has thousands of cars coming back to the lot.
The timing could not be more ideal. The demand for EVs has never been higher. However, some prospective buyers get sticker shock when shopping for electric vehicles, including the biggest name in the sector. A simple solution is to buy used. Used vehicle sales topped 40 million in the United States alone in 2021, compared to 15 million new vehicles.
Nevertheless, there is still the longstanding stereotype of the sleazy, used car salesperson pushing a shiny lemon at unsuspecting shoppers. That is certainly not the case with Tesla. Instead, the used car sales run similarly to the new car buying experience.
Douglas said to Electrek, “Most people don’t realize that Tesla runs its own vertically-integrated, nationwide online used car retailer. It’s as big as some publicly traded used car retailers you’ve definitely heard of, despite no Super Bowl commercials.” It can only be assumed he is referring to Carvana, which launched its Over Sharing Mom commercial during the 2022 Super Bowl. The used car company is valued at $4.69 billion.
Tesla does not have a line item showing how much its used car division is worth. That section of the company falls under Services and Other; on the most recent filing with the SEC, that number is $1.4 billion.
While it is not Carvana’s value, it is still a big chunk of change, especially because Tesla has recently stopped lessees from selling any of its products at the end of the term. That means a never-ending supply of used cars will be returned to the dealership.
In addition, the company is preparing for growth in this division. A recently posted job at Tesla reads: “Would you like to be part of a team transforming the way people buy a car?” Douglas is hiring an associate manager of used car quality. The posting continues, “As a leader in Tesla’s Used Car business, you are responsible for the development of the refurbishment process and managing daily refurbishment operations.”
Perhaps the used car division will get more respect in the future at Tesla and not be lumped into the ‘other’ category. That category has grown by 50 percent since last year. At this pace, used cars deserve a line of their own.
Tesla wants everyone on its payroll to pitch in and help with a frantic end-of-quarter push. An internal email leaked to Electrek indicates that employees, even those not tasked with sales and delivery, to assist in getting as many vehicles out the door as possible. The email says there is “a very high volume of vehicles,” and management requests additional support.
This push should come as no surprise after a disappointing second quarter. The company delivered 18 percent fewer vehicles than in the previous reporting period. Tesla delivered 254,695 compared to 310,048 just three months prior. The decline broke a two-year streak in which the company continued to break its delivery record. The drop in numbers was not due to failures at Tesla, but due to COVID-related shutdowns at its Gigafactory in Shanghai, China.
Nevertheless, Tesla is adamant about righting the ship immediately. This quarter, like no other before, has seen significant competition enter the electric vehicle space and challenge the king of the sector. As a result, Tesla would like nothing more than to get back on track with another record-breaking delivery of its highly sought-after vehicles.
According to Electrek, the company-wide email stated: We will be delivering a very high volume of vehicles to eagerly waiting customers during the final days of Q3. To help ensure we can delight as many customers as possible, the delivery team is requesting additional support with key delivery-execution tasks.
For weeks Tesla’s careers page has listed dozens of Seasonal Advisor positions. The postings say these positions are “essential support at the end of the quarter, operating alongside our Sales and Delivery team to execute record-breaking delivery results.” The jobs were expected to last for two to three weeks.
Analysts predict that Tesla will get back on track and deliver more than 310,000 cars this quarter. In fact, one analyst has gone much further than that. Trip Chowdhry with Global Equities Research has publicly stated that he forecasts the carmaker will exceed 500,000 deliveries in the fourth quarter. In addition, he estimates that the time to produce a Tesla has decreased by 10 percent, and he notes other factors like the Semi coming online and increased capacity at factories worldwide.
Tesla is expected to report its quarterly earnings in mid-October.
Tesla’s rolling out another unique feature with suggested destinations in version 2022.28.2. This comes off the heels of a previous announcement where Tesla was offering alternate routes.
Tesla’s new suggested destinations show up under the Recents tab when you tap on the ‘Navigate’ button.
Tesla will list up to three destinations before displaying your recent destinations below them. Several owners have reported seeing this new feature in Tesla update 2022.28.2, but it’s not clear whether it’s available to everyone yet.
Tesla’s suggestions appear to be a combination of recent destinations and favorites, but it’s not clear exactly how Tesla is determining these.
A user by the name of Randall on the Tesla Discord noticed the new feature.
He was offered three suggestions, but after taking a short drive he noticed that the next set of suggestions was completely different.
Tesla may be using AI to determine your suggestions, so things like the number of times frequented, time of day, day of the week, the vehicle’s location and more may be taken into account when Tesla is determining your suggestions.
Like everything Tesla, this is the first iteration of this feature and we’re likely to see improvements on this feature in the near future.
For example, Randall noticed that although one of his suggestions was one of his favorites, the suggestion just showed the address of the destination and not the name Randall that given the destination.
The placement of suggested destinations could potentially be improved as well, instead of being displayed under Recents. Each of these suggestions likely has a probability score that Tesla determines and Tesla then displays any suggestions that are over a certain threshold.
It could be helpful if Tesla displayed suggestions directly in the middle of the screen when you first entered the car. If Tesla thought you were highly probable of visiting one of these suggestions they could display it more prominently, making it easier for you to enter the destination.
In recent updates, Tesla has focused quite heavily on navigation improvements. Alternate routes is a welcomed feature, as well as a quieter Joe Mode, and a revamped Energy App and time graph for Supercharger popularity. This suite of features is well overdue and much needed.
As the Austin-based automotive company continues to address various bugs and add features, owners are gaining more data for insight into their vehicle so they can better use it.
CEO Elon Musk has stated that any input into the vehicle should be considered (as a possible) error, so by adding yet another feature that the car tries to calculate your destination is a step in the right direction in Musk’s eyes. This is why there is no gear physical shifter in the refreshed Model S and Model X vehicles.
Instead, Tesla replaced them with an “Auto Shift” feature. This function works based on your vehicle’s understanding of which direction it needs to go. For example, if you’re in a grocery store parking lot, the car will see that it’s wedged between a few cars and know that it needs to reverse, or vice-versa. This feature is reportedly coming to all Teslas.
“I think generally, all input is error,” Musk explains at the unveiling of the Model S and Model X refresh. “If you have to do something that the car could’ve done already, that should be taken care of. The software should just do it.”
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