Musk admonishes Tesla employees for giving special discounts

He thanks them for a great quarter, though, and apologizes for his 'draconian language.'

When you buy a new car fresh from Tesla's factory, there's no negotiating the price. That's part of what sets the Silicon Valley automaker, with its direct sales model, apart from the franchise dealership system through which most other automakers sell their vehicles. You don't have to worry about your negotiating skills, getting played by a fast-talking salesperson, or somebody getting preferential treatment over you. Even Tesla CEO Elon Musk pays full price for his new cars.

That explains why Musk was upset to hear about "discounted pricing" in a post from a customer on Reddit. When brought to his attention on Twitter, Musk responded:
And also:
Since then, Musk Tweeted that he had taken "corrective action," posting the image of a mass email sent to all Tesla employees. While it is acceptable, he says, to discount floor models, testers, or vehicles damaged prior to delivery, there can "never – and I mean never – be a discount on a new car coming out of the factory in pristine condition." It doesn't matter if the customer Nikola Tesla himself, risen from the grave. Musk said that Tesla's finance group will record every instance and reason for a car being discounted. Musk told employees:

"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."

In what also appears to be a response to the Reddit post, which indicates the Owner Adviser tried to finalize the sale before the delivery of the customer's car, Musk says the finance group will only count a car as delivered in the quarter in which it is actually delivered, regardless of when title transfer takes place.

While Musk apologizes for his "draconian language," in the email, his personal response to the matter on Twitter and his swift and unambiguous (and transparent) communication with his employees should help to reassure customers that they'll receive fair treatment from Tesla.

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