Tesla lost $619M last quarter, and the trend is the more vehicles they make, the more money they lose. So far, the production rate of the Model 3 is about an order of magnitude less than what was planned. If they can't even make money on their high priced models, it will take a miracle to make the Model 3 profitable. In contrast, Mazda actually makes money.
The exact inverse is actually true. Tesla is still in the R&D/Innovation stage. Tesla is developing a new vehicle technology. They are not selling into an already existing market - they are literally building that market as we type. Those two things (innovating and developing new markets) will always (without question) cost more money to do. The inverse is true because at this stage of Tesla's history, they are actually ahead of the Revenue/Cost relative ratio when compared to traditional automobile start-ups of the past. Given that trajectory, Tesla is slated to be not just one of the most but the most successful auto manufacturers the world has ever seen. Again, this is not going to happen over night.
As oil exploration costs continue to soar because platforms have to continually drill deeper to tap reserves, as other processes such as shale prove to be cost-ineffective over time, as we approach 'standardized extraction method' peak oil and as middle income salaries continue to erode over time, expect the need for long-range personal transportation that does not cost an arm and a leg to refuel and/or maintain to become more than just fashionable as it might be today. Tesla, is on the cutting edge of a paradigm change not merely in automotive engineering technology but in scaleable economic theory as theory.
Tesla, is a cake not yet done in the oven. Remove the cake and judging it now would be tantamount to removing Ford's Assembly Line and judging it before the Model T had reached peek production. Optimization is taking place across Tesla in a number of different ways. Again, it takes time to get right. They paid back their government loans ahead of schedule, remember.
Cessna CJ4 - Your model for white glove, door to door service is wonderful, but wildly unrealistic for the price class you bought into. Would you be willing to pay extra for the rental vehicle, the extra cost for towing your vehicle to/from the repair facility, and the cost of having the rental vehicle dropped off and picked up from your door?
The cost reductions that are inherent in the new model itself offset such drastic encumbrance on the Consumer. This is the entire point. The new model would actually be far more efficient to operate and require less overhead than the current dealer model. It would also offer internal optimization the current dealer model cannot offer itself -
because the current dealer model is in competition with itself and therefore aggregate optimization is anathema to that model by logical extension and definition.
The current dealer model is not merely broken - it literally makes no economic sense. It is highly inefficient from a Revenue/Cost standpoint and when put side-by-side with what the other model could offer (if people would actually study it), represents the continuance of a prehistoric dinosaur-like infatuation with the highly illogical and irrational. We've become so accustomed to being patently ripped-off inside the Dealer Model, that we don't even recognize ourselves as being that proverbial Frog in a pot of water that grows increasing hotter every single year. $50 for one quart of Differential Gear Oil! Really? That's what one dealer recently quoted me as my out the door price for one (1) quart.
We need a new model. If people would simply think it through, they would see that it could actually work out to everyone's benefit - except the current dealerships.
Converting over to a direct sales and service model would require them to either buy out most of their dealers, or abandon their dealers and build new dealerships of their own.
What's the cost to benefit ratio for scaling economic growth within a company? What's the cost to benefit ratio for innovation that increases customer satisfaction? Mazda could double its current revenues by implementing such a model long term. What's that worth? In the process, how many more satisfied Mazda owners would there be? What kind of Mazda owner today would actually claim they don't want such a level of optimized service from the company that produces their vehicle? The only people talking like that are those that have not done the homework on how such a new model would indeed work, or those who have ties with the current failed Dealer Model. No real Mazda owner would deny such an improvement in their relationship with the company that makes their vehicle. Not one. It would be highly irrational for me having just bought a brand new CX-9 Signature, to say: "No thanks, Mazda. I don't want your concierge service and I don't want your careful handling of my vehicle at a reasonable price. I'd much rather create problems that did not exist in my vehicle whenever I bring it to you. And, I prefer that you charge me 100% more than I should be charged for creating those extra problems for me. Thank you."
Nobody in the right or left mind would say such a thing.
We need a new model that works for both parties and illuminates the costly middle man. You are looking at this from a Middle Man perspective and yes, looking at it that way sure, it would cost Mazda an arm and a leg to bring such service to its customers. But, that's not what the new model would require. The newer model would offer lower costs of operation than the current one, more revenue streams from the OEM standpoint (as they both sell and maintain now), offer clear paths towards optimization of internal units and lay down a pathway towards greatly improving customer relationship long term.
The only thing holding this back right now are Politics, Politicians, Lobbyists and Disinformation leading to Misinformed opinions not based in empirical study and/or qualitative estimates of cost recovery and potential revenue growth - mostly being spread by failed old model operatives.
This can work. The people just have to step up and start demanding better for their dollar. Heck, you earned that dollar! You have some say as to how that dollar gets spent and what happens to you (and your vehicle) as a customer after you spend it.
They don't have the capital to do that, and they would risk killing their sales in the interim.
They would have more capital then they can count. It would be a significant boom for Mazda, principally because they are not Tesla and they would not have the costs associated with a company on the cutting edge of automotive technology while at the same time breaking open new markets. This is why Tesla, is not now flush with cash as they will be in the future. Mazda, has an established brand and roughly 2% market share in the United States. There is enormous potential here. CEO, Masahiro Moro, says he want's a "good 2% market share." Yet, he argues for the impossible at this point. He also says he wants a "small but profitable company with profitable dealers and loyal buyers." He can have three out of three if he wants, but not in the current failed dealership model. Masahiro Moro, can also more than double his market share in the United States, by introducing something truly needed - something he says he wants.
You become successful in business by giving customers what the want, what they need, when they want or need it and with a level of service/support that instills confidence in their mind that a longer term relationship is not merely warranted but an outright guarantee. He's got a good product line which is only going to get better. He's got a great OEM process that is only going to get better. Why not seal the deal by offering the customer a level of service after the sale that will only get better with time. That's how he goes from 2% to 4% and beyond. All this talk about remaining "small" at Mazda, is only because they've had so much difficulty breaking out in the US over the years. So, they've become accustomed to thinking "small" - believing that's all they can do. I think they can break out, take more market share than they ever dreamed possible by offering something that nobody else is offering.
Innovation does not always have to be purely Technological. Sometimes innovation can come through reoriented Process, Methodology and Principles. I believe Mazda is the perfect candidate to make this happen now.