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Why Reserve?

Please don't jump on me for asking this question.

I've been following these forums for awhile now. And I see everyone reserving their model s. I just don't know why. As I'm reading over the forums, I'm seeing production starting mid 2012 and deliveries ranging from late 2012 - 2013. I've also heard horror stories from other car makers of their delays in production. So why reserve? Why not just wait til the car actually comes or, then buy it? Is their any benefit to reserving besides the reservation may get you the car a month earlier ? Or is it more drastic of a time frame?

Might be a dumb question, but I've never reserved a car before.

Yes, that was my reference to variable costs- those costs that vary with production quantities when production begins. Under GAAP, until there is actual manufacturing output, plant and equipment for manufacturering are actually charged to R&D accounts. There are no capital equipment accounts until manufacturing begins. When actual production begins, those assets charged to R&D accounts that become production assets are then transferred from the R&D accounts to capital accounts and depreciat5ion and amortization begins. That's a net zero on the books. Sounds silly, but I believe that is the way it is done. I believe Elon commented on this during the 3Q conference call when he was saying that Tesla did not need any more funds to begin producing the Model S and the Model X, that most of the investment was already on the books as R&D.

I reserved only to be in the line. Just in case that I will like this trolleybus when they start a real production. To be onest I wasn't impressed with the roadster too much. It's fast. O.K. I've seen fast cars before. Cars are not about acceleration. Or at least, not only. Model S is a totally different animal. It's reasonably fast for sedan. It pretends to be luxurious. Well... At least it is possible to get in and get out and do not break the spine.
But at this point it's absolutely irrelevant. No matter what they say I am not going to sign any contract with Tesla before I have a real test-drive. I need to feel the ride, handling, breakers, seats and many other things. And it takes time. I don't care how people look at me, I don't care if they like my car, hate it, admire it. To be onest I don't even care how good EV for environment. I just want to make sure then I can feel and drive a trolley as a car. If I can I'll buy it. Despite the fact that I'm not sure that this start-up will even exist in six month.

I'm not even sure what the hell you're saying there AlexSV.

Are you saying that you won't buy the car if you don't like it?

I think what he's saying is that he reserved so he'd have a spot in line once the test drives are available. He'll decide to buy after he test drives and figures out if it is worth it to buy. Nothing else about the car matters.

So he answered his "Why Reserve?" =)

Not sure why he keeps referring to it as a trolley tho. Might be a reference to the electrical drives for those vehicles?

Personally I think the car would need to suck wind for me to cancel my reservation. So many things about it just speak to me as a techie and buy local kind of guy.

He must be British. He doesn't know there's an "h" in "honest".

I don't understand his comment: "Despite the fact that I'm not sure that this start-up will even exist in six month."

If he believes this "fact," why pay $5,000 and get excited for a car that won't exist beyond a test drive?

Strange...

As painful as AlexSV’s comments seem, we did reserve, so we can get the car sooner. All of us will test drive an “S” as soon as they are available. And...if we do not fit in the car, don’t like the way it looks, feels, or drives we can and will bail.

Not everyone shares the passion. In a world of boring cars, Tesla is the most interesting new car. My only concern? High expectation, heightened by tons of anticipation. Seldom does a reality equal or exceed a fantasy. However, after driving a Roadster and Riding at Fremont I can hardly wait to get my hands on my “S.”

I am particularly fascinated by the Tesla team and how much they have accomplished. As I understand it Nissan spent $6 Billion designing and building the leaf and this did not include buying a factory...Just to build an ordinary looking EV with inadequate range.

Whether AlexSV buys or doesn’t is up to him. Be easy on him, he is being cautious, honest, and has begun the journey to enlightenment.

Amen!

mm;
It's a fact that he's not sure, not that he believes it's a fact. Report back to Grade 8 for grammar parsing re-education!

>:)

AlexSV | November 9, 2011

I reserved only to be in the line. Just in case that I will like this trolleybus when they start a real production.
...
Despite the fact that I'm not sure that this start-up will even exist in six month[s].

Six-months later update:
It exists! And beat the production prediction timeline.


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