Tesla amped up in Oz

Almost everything about Tesla as a business runs counter to convention.

It sells electric vehicles that happen to be more or less practical on a day to day basis. They're priced to compete effectively with conventional prestige cars also.

The company has got off to a slow start, with production of the Model S sedan incapable of meeting demand in global markets – although that is steadily changing. Retail sales are growing – we're told – in spite of Tesla selling direct to the public rather than through a dealer network skimming cream off the top of the company's profits.

In Australia, the swimming-against-the-tide approach continues, with targeted marketing for the Model S (and the Model X SUV down the track). And Tesla has chosen not to sign up as a member of the FCAI (Federal Chamber of Automotive Industries), so its sales figures aren't collated in VFACTS. While some companies opt out of VFACTS simply due to the expense of joining the FCAI, in Tesla's case it's a calculated tactic to keep its regional sales figures under wraps.

According to local spokesman for the brand, Heath Walker, sales figures could be misconstrued in a regional market, and that could hurt Tesla's share price.

"I don't know whether that will be a 'forever' thing, but certainly while we're a young company and certain regional figures can have such an influence over us as a listed company, it's something that we just want to hold onto at the moment," Walker, Tesla's Marketing and Communications Manager in Australia told motoring.com.au earlier in the week.

Given Tesla is another prestige brand entering the hard-fought Australian market, and Aussie buyers can be cynical about start-ups AND electric vehicles, it's hardly surprising Tesla is reluctant to reveal its sales results. Infiniti has struggled to achieve brand recognition or sales during its brief tenure in the country – and its products should be easier to sell and promote than the innovative Model S.

Walker did say however that Tesla is confident it will thrive in the Australian market, based on those same sales results he wasn't in a position to reveal.

"We did have our best quarter ever – as a company... and the reaction in Australia has been nothing but positive."

He made the point that Tesla wouldn't be expanding its recharging and retailing facilities in Australia if the sales to date weren't promising.

"We wouldn't be investing in the infrastructure as quickly as we have if it wasn't a positive story to tell."

Getting the message out there is currently the toughest challenge for Tesla in Australia, Walker admits. But the company is finding new ways of reaching prospective owners, and the Model S is in itself an icebreaker for would-be buyers to approach the company with a view to ownership. The Model S is a striking car that is visually appealing in a way that most electric vehicles aren't. It's a rival to the BMW 5 Series and Mercedes E-Class, which surprises many customers when they see it for the first time, Walker says.

"Seriously, the biggest challenge for us for Model S is getting people in the car. Once they realise how much storage and space [there is] and how it drives, their mind is completely changed... even those that are already interested.

"We've got people that come in thinking they want an SUV and leaving with a Model S, just because they're buying an SUV for the storage that the Model S has got already.

"It's deceiving how big it actually is; it's five metres [long]. I had it parked next to a Nissan Pathfinder; it's the same length."

So the Model S is turning the heads of passers-by in places like Melbourne's Chadstone shopping centre. It's shortly to be joined by the Dual-Motor Model S as a promotional tool. Until now Tesla could only demonstrate the Model S to Aussies in rear-wheel drive form, such was the shortage of supply.

"In terms of Dual-Motor we're just about to receive that in this country... that will propel the market even more so, given the interest in that particular product," Walker explained. "We haven't had that; the only thing people have been able to test-drive to date is the rear-wheel drive, so there's a lot of interest in people getting their hands on the Dual-Motor all-wheel drive version.

Tesla has been leasing short-term floor space in shopping centres to promote the Model S. the morning Walker spoke with motoring.com.au he had been present at the Doncaster Westfield as shop-fitters took down the Tesla tenancy there. He's in two minds about fronting up to motor shows or annual automotive events like Motorclassica or the Australian Motoring Festival.

"Yes and no," he responded, when asked about Tesla attending a local automotive event like that. "Globally we tend to head to the higher-end motor shows. Local markets [elsewhere in the world] have on occasion gone to the tier-two [shows] – or what's generally classed as a tier-two [show].

"We tend to make our media announcements more so at our own events. I think in this market we would continue to do that to get some clear space – so not necessarily.

"But I think more from a general awareness point of view it would certainly assist. But we've just bumped out of Doncaster Westfield this morning; we've been in Pitt Street Westfield for the last five weeks – and we'll continue to do events like that.

"We've got eight events this month and eight events next month. The events tend to work really well for us, from a display and test drive side of things, just to get people in the car and experience the car. If we could do more we would, but we're still ramping up our own stores and trying to get people through those as well.

"The week after next we've actually got a celebration called 'The Next Billion' Tour; we've just reached one billion miles globally, across our ownership fleet. So to celebrate that we're holding a three-day event, both at our Melbourne store and our Sydney store – Richmond and North Sydney – and inviting people to come in and test-drive the vehicle.

"We've got an owner panel happening on the Sunday morning, where we'll invite prospects in to hear what it's like to be an owner, and we'll be holding a media event on Friday morning up in Sydney.

"Just to showcase our stores, showcase our facilities, but we'll have various elements at the event, where people can learn about charging, learn about ownership and learn about the safety of the vehicle in more detail, from our staff and owners."

Even without concrete sales numbers as supporting evidence, it reads like Tesla is gaining serious traction in the Australian market.

But there's a fly in the ointment – supply. It's not the sort of problem buyers might expect to encounter dealing with a car company that's brand new to the country and presumed to have plenty of stock and a hungriness to sell everything possible.

Many Tesla customers have been waiting for months on end to take delivery of their Model S – and since some at least have bought prestige cars from other brands in the past, they would know that it can take considerable time for a car to be shipped here, prepared and delivered. In Tesla's case however, even the prestige buyers have found the wait long and arduous. It's a problem associated with Tesla's manufacturing capacity in the USA, where the Model S is built.

Walker admits that it's a concern for Tesla, "... just getting the production line manufacturing at the rate that we need to for global production."

The company's Gigafactory in Nevada is in a constant state of flux, Walker says, as it changes to accommodate higher production levels.

"I've been here for eight months now, and I've been on three trips for five tours of the factory," he said. "Every time I went through the factory – and I'm talking... 48 hours between the two tours – there was something new being built, just to assist with production."