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60 -> 75 upgrade price drop

Discussion in 'Model S' started by fallen888, Apr 17, 2017.

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  1. fallen888

    fallen888 Member.. hehe, I said "member"

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    So I just noticed the big price drop. Yes, I already charge to 100% every day. What are your thoughts on this? Is it worth it? Or keep waiting for it to drop more?

    Screenshot_20170417-090932.png
     
  2. tda1985

    tda1985 New Member

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    I'm so tempted by this and came on to ask the same question. TBH I don't need the extra range everyday but I'm very tempted just because this was $9000 just a couple of months ago...
     
  3. hingisfan

    hingisfan hingisfan_Mark_V

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    Doubtful it would drop more than that....if you would never use it, save the 2k, if you would use it, it's a great value upgrade.
     
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  4. Yinn

    Yinn Member

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    I was tempted to as well.

    You're still getting more range. 75D is rated for 259mi, @ 90% that's 233mi. My 60D charge to 100% is only 218 mi. The extra 15mi might not be all that much in day to day, but the extra 41 mi can be a huge difference on the long trips.
     
  5. DrivingRockies

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    No love for the X.... :-(
     
  6. fallen888

    fallen888 Member.. hehe, I said "member"

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    Yeah I'm tempted, but in reality I'd only get about 13 extra miles between 100% of 60 vs. 90% of 75 on daily basis. And an extra 40 miles for road trips. Is range the only change? Does speed limit get any more unlocked? Think the upgrade price will drop more later in the year?
     
  7. alehbaba

    alehbaba Member

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    still too expensive...if less people take this offer they may lower it to what it is to go from 70 to 75...$500 is fair
     
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  8. whitex

    whitex Active Member

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    You are absolutely correct. Keep in mind though that that those last few miles to get to 100% charge take forever to charge, so you can just drive a little slower and achieve similar effect (spend time driving longer vs. charging longer). For me, I'd spend $500 for this upgrade as a splurge, knowing that I am probably never going to use it but would like to have it. For $2K I'd rather splurge on something else. So, I'm not sure whether I should be happy or sad that it's not $500, because if it was, I would be $500 poorer. ;)
     
  9. AnxietyRanger

    AnxietyRanger Well-Known Member

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    Actually, I would not be surprised to see this upgrade cost go back up to $6,500 or something once all the 60 kWh cars have been delivered.

    This is clearly to make sure 60/60D orders in the pipeline don't get cancelled as the 75/75D price was lowered. The Model X 60D upgrade price decrease to $6,500 seems much more "real price".

    Of course it is possible the price will remain at this level to eventually entice most/all 60/60D drivers to upgrade...
     
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  10. whitex

    whitex Active Member

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    #10 whitex, Apr 18, 2017
    Last edited: Apr 18, 2017
    I am not sure I follow. Why not just keep the 75 at higher price until the pipeline clears, or offer a special deal for those in the pipeline (like the Ludicrous upgrade that was offered to P85D owners, but since it's software only, why not)? I think it's more likely Tesla realized the conversion rate on the upgrade is very low, so lower the price to increase the take rate and maximize the profit - basic economics. 1000 updates at $2000 is more profit than 50 at $5000. I wouldn't be surprised the price would drop even further in the future, like other software products (since 60->75 is just a software option). Start high, get a wave of people. Once that waves dries out, lower the price, get another wave. Repeat until you've milked all the profit from it. The only reason not to do that is to try avoid upsetting previous customers, but if they are willing to go from $9K to $2K, that is probably not a consideration at this point. Also, nobody is gaming(software) complains about the game costing $20 while 2 years before it was $70. By removing the 60 as an option for new orders, this leaves a fixed number of possible customers for the upgrade, so it actually makes more sense to use the gradual price lowering strategy to max out profit from this as it doesn't affect any new sales. Raising the price just means nobody else would buy it (if they didn't buy at $2K, why would they buy it at $6,500?). I know this may upset some people, but welcome to software marketing.
     
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  11. AnxietyRanger

    AnxietyRanger Well-Known Member

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    #11 AnxietyRanger, Apr 18, 2017
    Last edited: Apr 18, 2017
    @whitex I know I was speculating and that speculation may be wrong.

    However, the logic was this:

    Lowering 75/75D price makes sense for Tesla to keep selling a certain volume once 60/60D is retired, prior to Model 3 ramp-up. And lowering the 60/60D upgrade price is important as long as there are 60 kWh models in the order backlog to be delivered, so as to not get delivery refusals.

    But once all those 60 kWh models have been delivered, old non-upgraders become a far less interesting audience to Tesla for whom new car deliveries are the metric they care about. Everything is about protecting those quarterly delivery figures.

    My speculation is the upgrade price may well just follow whatever is the current delta between old 60 price and current 75. If 75 goes up in price, e.g. after Model 3 AWD, perhaps the upgrade could too?
     
  12. davinci2017

    davinci2017 Member

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    I think the price was adjusted to sit above the top of line 75 Model 3. As simple as that. No point having 60's sit in inventory that are the same price, hence offer a way to catch up. It still a cash grab even at the "discounted" $2000 rate, as the new 60's that many of us bought are the same price as the 75 with fewer standard features (no glass roof or auto-hitch). If the existing 60's still don't see, they are going to either drop one more time to 500-1k or so, or simply give it for free (one can always hope, but this is highly unlikely).

    There is also a chance that they ignore all of this completely and move on to other things and simply leave the $2000 option be as a permanent option for any new 60 owners. Honestly, I'm still on the fence with the whole thing, 2 grand is still a lot of money for what amounts to 20 extra minutes at a charger for 20-25 miles more range at best.
     
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  13. AnxietyRanger

    AnxietyRanger Well-Known Member

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    #13 AnxietyRanger, Apr 18, 2017
    Last edited: Apr 18, 2017
    @davinci2017 Certainly possible that this is all setting the stage for Model 3 and will remain as is.

    Personally I would not be surprised about Tesla still playing short-term games with Model S pricing, though. And if so, the price of 75 kWh both as a new car and as an upgrade might still be in flux. Even going up.

    Might.
     
  14. MP3Mike

    MP3Mike Active Member

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    Some people think it is worth it just to get rid of the annoying message that you are charging to 100% everyday. :)
     
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  15. whitex

    whitex Active Member

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    Ok, I can see the logic that if the price of 75 goes up, the upgrade could go up, however:
    1. Once it was $2K, going up to $6.5K pretty much kills upgrade sales (unless of course this 75 increase and upgrade increase is purely due to inflation - which would have to be pretty bad).
    2. If you are right and they only care about new cars, why lower the upgrade cost to old customers?
    3. If the 75 is priced low to keep the volume going, why not just keep selling the sw limited 60 for that purpose? It would keep the pipeline going, while allow the 75 to be priced higher.

    After I wrote this, another reason for lowering priced came to mind - competitors are coming with 200+ mile EV's. I know people see Model S as luxury car, but it really isn't. If it had an ICE, it would not sell at luxury prices. Battery prices are obviously going down if Model 3 can sell at $35K, so 75 price may just be a reflection of that.
     
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  16. AnxietyRanger

    AnxietyRanger Well-Known Member

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    @whitex All very good points. I don't disagree and have no strong feelings about this.

    Just some musings:

    2) Lowering the 60 upgrade price for all seems like the easiest way to get 60 orderers to accept delivery. They get the option to upgrade and a sense they can do it later too... hence they won't be in such a rush to cancel.

    3) Getting rid of the 60 model may feel necessary so that no version of Model S is "lesser" than Model 3 once the latter launches with a battery option larger than 60. This way by Q3 mostly just 75+ Model S's are left to be sold...
     
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  17. whitex

    whitex Active Member

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    Valid points. Only time will tell.
     
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