TESLA - Chapter 7 - Goldmine is in ‘Supplemental Services’ Instead of Auto Sales

Our 3rd Video summarizes the program and concludes with the advantages of the Million-Mile Warranty = a Membership program.

Henry Ford was to have said that the money was not in selling the car, but in selling the parts and service for repairing and maintaining it. Ford had to keep prices very low if the average worker of his the day was to afford to buy his car. So Henry Ford tailored his sales to instead make money on the back end – from the repairs on the car. This was Henry Fords ‘formula’ in contrast to other automakers of those times the day that made their money off the sale of the car.

These auto-care services have only multiplied since those times of Henry Ford. We have so many more ‘Supplemental Services’ to the auto industry. There is insurance, financing and warranty; to upgrades, repairs and dealerships.

Elon Musk stumbled upon ‘Henry Ford’s formula’ when he rolled-out Tesla Insurance. Musk found that insurance would become ‘40% of’ Tesla’s entire business. Now add in all the other ‘Supplemental Services’ of the auto industry. Plus, we have some new ones as well that are unique to  from our Patent (pending). And so beget: 7-fold greater income over the sale of the car alone. 7-FOLD! 6 of these increases are from these Supplemental Services.

(That’s 50 cents per mile. Tesla would now make 50 cents on each of those Million-Miles. Compare that to only getting paid for the sales price of the vehicle. That is all Tesla gets in today’s retail sales system. Here you can see how much more a Membership program offers automakers.)

Today’s automakers take this ‘extra’ $360,000 and hand it over to all these other 3rd Party service providers.

Our Warranty reconfigures the car. It’s not just another product to buy, but a whole new market platform. 

(N Parag) Today’s automakers do all the work to build thae car and then just hand-off all the best revenue streams from it. Automakers give that business to all these other providers: insurance and finance companies, dealerships and repairs shops, etc. These players cash-in on these extra revenue streams rather than automakers.

Elon Musk is changing that. His calls his new business model ‘vertical integration.’ That’s a fancy way of saying Tesla will now be replacing these 3rd Party service providers. This industry consolidation allows Elon Musk two big advantages:

1. Far more revenues for Tesla – 7 x more $

2. Huge Savings for buyers – $250 rather than a $700 monthly payment, and a $30 a month Warranty.

 
Our Warranty takes Elon Musk’s Vertical Integration and repackages as the official market platform for the auto industry as a new Auto Membership program.