Hello and welcome to the Monday July 9th

2018. My name is Rob

Maower. Today we are talking about Model 3 test drives, China price increases,

and Nissan emissions. Tesla stock on Friday barely finishing in the red down

0.08% compared to the NASDAQ up 1.34%.

About a month ago Tesla sent out an email to United States reservation holders for

model 3 that they would soon be offering test drives and reservation holders would be eligible

to sign up for those test drives.

Over this weekend, Tesla began offering those test drives from select California stores.

My understanding is that currently these vehicles are the long-range single motor

rather than dual motor or performance versions.

If that is the case, it does surprise me a little bit that Tesla didn't just wait a little bit

longer to have those first test drives be with the performance model.

We know that Tesla is prioritizing production of the performance model based on the wait times

for deliveries.

It would seem that to get the highest percentage of people converting to the performance model, that offering test drives

only in that version would offer the highest percentage of conversion to performance.

However, on the other hand, offering test drives of any kind should help increase the overall conversion rate amongst

reservation holders. So even if by percentage a fewer percentage of them are converting into

performance models, if a smaller percent of a larger number are converting to performance, that still helps

Tesla in its goal of getting as many performance model orders for Q3 and Q4 as possible.

This clearly seems to be the case, as Electric is reporting that Tesla is now offering a $300 commission to its stores sales teams for sales of the performance model 3.

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