Elon Emails

No discounts on new cars, ever

From:
Elon Musk
Date:
September 28, 2016 (Date Musk tweeted an image of the email; it was sent to employees that week)
To:
All Tesla employees

Partial text. Only these passages were published; [...] marks a gap.

That said, it is absolutely vital that we adhere to the no negotiation and no discount policy that has been true since we first started taking orders ten years ago. This is fundamental to our integrity and we maintained this policy even through the terrible depths of the great recession of 2008/2009. It is fine to have a discount on cars that have been floor models , were used in test drives or were damaged before delivery. All we are doing there is assigning an accurate price to the vehicle. However, there can never — and I mean never — be a discount on a new car coming out of the factory in pristine condition, where there is no underlying rationale. This is why I always pay full price when I buy a car and the same applies to my family, friends and celebrities, no matter how famous or influential. [...] The acid test is that if you can't explain to a customer who paid full price why another customer didn't without being embarrassed, then it is not right. We either win in a way that is fair and right or we lose with our honor intact and accept the consequences. [...] I'm sorry for the Draconian language, as I am super grateful for your hard work, but there is nothing that matters more than our integrity as a company... Customers need to know with absolute certainty that they can always trust Tesla to do the right thing.

About this email

After a Reddit/analyst report of end-of-quarter discounting, Musk tells employees the no-negotiation, no-discount policy is fundamental to Tesla's integrity: floor models and damaged cars may be marked down, but never a pristine new car.

Notes

Musk posted the email as an image on Twitter; the image text could not be read in this session, so the text is assembled from passages quoted by Electrek (first two paragraphs), Autoblog ('acid test') and Jalopnik ('Draconian' passage, whose ellipsis is Jalopnik's). Fortune also quotes Musk saying the quarter 'is likely to be the best ever in Tesla history.' The opening of the email is missing.

Where it came from

Published by Musk; attribution confirmed.

Tesla, company-wide memo. Tags: discounts, pricing, sales, integrity, end-of-quarter