My OA said that they have no discretion--price is set by a programmatic algorithm. I tried to understand why my car had 13K discount compared to similar cars that were 7600. All he could offer was that it depends on mileage (50 in my case, which is effectively none) and age. There must be more to it since many of the latest cars available in the sale are brand new. The only thing I could come up with was my car (and the others like it with similarly high discounts) were fully configured, so perhaps the algorithm determiners that they will be harder to move since they infringe in the 90 price range. Just a guess.
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$9,300 off inventory Model S 75D - end of Q3 firesale
- Thread starter MountainRoad
- Start date
My OA said that they have no discretion--price is set by a programmatic algorithm. I tried to understand why my car had 13K discount compared to similar cars that were 7600. All he could offer was that it depends on mileage (50 in my case, which is effectively none) and age. There must be more to it since many of the latest cars available in the sale are brand new. The only thing I could come up with was my car (and the others like it with similarly high discounts) were fully configured, so perhaps the algorithm determiners that they will be harder to move since they infringe in the 90 price range. Just a guess.
I was told they can't ship out of the local area two days ago. I'm based in Los Angeles, ended with an S75 I'm picking up from Fremont tomorrow morning. 6500 discount. Feels great until I read about the 20k+ discounts other people are finding! Still keeping an eye on inventory for a 90 with decent specs just in case it pops up before tonight.
Ya, We graph the discounts on Tesla Inventory and you can see as the mileage increases, so does the discount. The cars that still have 50 miles and great discounts, that's something else they are determining.
Ah, I guess it was earlier than today. That's a bummer. I will say, most of the heavily discount cars are the P90D.. I would think the margin on those is higher and a more limited market, therefore they can discount them a bit more. Not 100% sure though. Currently there are only 2 refresh 90D. One of them is $15,100 off, but still $93,850. Neither is in LA though. Here is a screen shot of the top discounted cars in LA at the moment that aren't performance. Here is a link to see them TeslaInventory.com. If you sign in you can see the price changes and history.
It is very exciting to see so many people getting their car so quickly!
Thanks Erik
I sound underwhelmed in my post but I'm extremely happy about the discount... I do monthly work trips from LA to Vegas and the range difference between the 60 and 75 is HUGE for me - makes the supercharge stop at Barstow (close to center of trip) much less stressful as I can drive as fast as I typically do without worrying about not making it.
I got a "showroom discount" on a car that hadn't even left Fremont for the showroom yet.
But still, I couldn't imagine what could happen in a showroom that would justify a $7,000 discount. Somebody could barf in my Tesla for that kind of savings.
The only people who didn't abandon existing orders are those who weren't paying attention. The discounts covered the lost deposit with plenty of money to spare.
Others had valid reasons as well. I'm in the middle of refinancing and perhaps putting in a new paver driveway. If I'd cancelled my delayed delivery, I would've had a car sooner but wouldn't be able to charge it or park it in the garage as the driveway would be torn up for a month. Also, I decided to refinance the mortgage first as the savings I'll get from that will pay for most of the new Tesla car payment. If I'd gotten a car loan first, the interest rate on the mortgage would've probably been higher.
You can alway shop online. There were over 900 listed on TeslaInventory.com yesterday in the US alone. Now there are fewer than 500 remaining but you might be able to pick up one from a local store before the end of the month. There are still plenty of discounted cars available.
Here are a few of the cheaper ones (75 kWh) with big discounts in California which are still available:
There are tons of Model S 75D that sell for around $75 to 79k.My budget was $73k. I didn't want to spend more than $80k out the door.
Dan43
Member
All UK inventory was pulled the other day, only 1 car left. Not the same deals here at all and we are getting a rumoured 15% price increase due to £ v $ shift after the EU vote, so Tesla are getting very expensive over here :-(
Ulmo
Active Member
I seriously wish! $10,000 or $7,500 or even $5,000 off of getting AP, range increase, and/or charge amps upgrade, would be sweet indeed! I am in the eligible situation: ordered car, finished production, waiting delivery, which I could have already picked up 7 days ago if I rushed it. Believe me, I want it now, since my ICE died already, and I'm in a rental. Problems:
1. I don't get my $ until later, due to a timing error on my part, way after the Sep 30 time frame.
2. I might have been able to bypass #1 if the discount was wildly enough, like the full $10,000, maybe, just maybe, but doubtful.
3. There's nothing in inventory that "crosses the hairs": the intersection of price and features just isn't what I can afford and what I want, respectively. There's nothing even close. There was one red one up in Dublin that was lacking Dual Motor, and honestly, I could have gone for it because for $3K I can wrap it with any color I want, but with the $7,000 off - $3,000 wrap - $2,500 loss of deposit - No Dual Motor, that equals $1,500 - No Dual Motor, so it's not worth it to me at all. Like I said, a discount of $10,000 would probably not even be enough, and this isn't a discount at all to me.
4. If I had been lucky and got my timing right, had the $ available, didn't order the car (even though I was ready to order it), then I still wouldn't be able to afford anything in inventory I would consider what I want.
Do you know what car they made that I do want that I will (eventually) be ready to pick up all said and told? The one I ordered. That's why I'm going ahead with the one I ordered, if they'll sell it to me, after delays. Ugh, but it's coming one way or the other now, even if I have to reorder it if they give up on me on the first go around.
Do you know what would have circumvented this whole mess? If they were making them in 5 days instead of 15, then I would have gotten my stuff in position before sending the order out. Oh well :/ it is what it is. I'm still excited about it.
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The ones I listed were all refreshed/facelift models in California and several were below $80k.
You can easily find all cars which match your criteria at TeslaInventory.com
Thank you. I should have ordered one a few days ago when the color and options I wanted were available. Interesting enough, a product specialist just emailed me about the end of the quarter and I'm waiting for him to provide me with some options.
Good luck! There's still a week left so it may still be possible to get one with a big discount this quarter.
Ulmo
Active Member
During my drive home from the corner store just now, I was thinking about this.
First, Tesla wanted to fund their Model 3 development and capital partially out of profit margin off of Model S & Model X. Basically, Model S and Model X are nice cars, but being sold at a price quite a bit higher than they cost to make.
Next, Model 3 will start to be made, and shortly after, it will settle into profitable territory all by itself; each Model 3 car sold will be a net cash inflow event.
Even though they will still have expenditures:
Paying down old debt
Model 3 expansion, Gigafactory expansion (including PowerWall expansion)
Solar roofs
Other equipment (chargers, inverters, etc.).
Model 3 will be able to pay for all of that going forward, in addition to income from all the products company-wide.
My point is, that the need for plain cash from every Model S and Model X sale will be diminished. The need for Model S & Model X to be much cheaper to make than they are sold for will, therefore, be diminished. Not eliminated, just diminished. This works into the sales model a bit: the buyers of Model S and Model X are not only paying for their own car but also for development of the Model 3. Once Model 3 can stand on its own, Model S and Model X buyers will (rightly) say that Model 3 has already been paid for enough to stand on its own, make back its own money, and there's been enough income redistribution in this world to suck it dry many times over, so let's get some of that money being paid by customers for their Model S and Model X back into the Model S and Model X value. This can have any of a combination of various results, some of which I will guess and list here:
- Lower price for Model S, X
- Improved quality for Model S, X (new comforts, new features, more reliable, etc.) We all have our own list of items that can go in this category.
- Tesla tries to keep milking the donors for more development on new product lines, like Model Y, Model Truck, Model Bus, and Airplane new development. I say Tesla realizes this is a bad idea, and decides to give the Model S and X crowd a win and have the Model 3 (in concert with all product lines profit) pay for the Model Y, etc.. #3 is stretching it too far, in my opinion.
- Tesla abandons the push to sell so many Model S and X, and just lets those models dwindle, and doesn't increase the value (or decrease the price). From what I understand, there are enough Model X & S sold to make it worthwhile to keep that market share going and earn profit, so, therefore, #4 is a bad idea.
What that means is that the current Model S and Model X will depreciate even more once the Model 3 comes out, because Tesla is going to turn its attention to newer versions of the Model S & X and sell the older versions of Model S and X for relatively less, while they try to increase newer Model S & X value so they can charge a premium amount for improved luxury and compete against new luxury EV competition. Tesla has left themselves room for a lot of improvement in the luxury angle of the Model S and X, and they may take advantage of that.
So, "new owners prior to 9-15" feeling extra bad about depreciation haven't been looking at Tesla's master plan version 1 or version 2, because it's all written in black and white, by Elon Musk as CEO of Tesla Motors.
Tesla's willingness to appropriately discount price shows that it doesn't want to remain stagnant, and is willing to continue to bring compelling new and existing products to market. And yet, there will still be a lot of us who pay huge margins for our cars before the Model 3 comes out.
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