A $1000 increase November 4

[Kairide]

Costs for everything are going up. Metals (steel prices are stupid right now), silicon, tires, shipping, wages.

Some of it has been negated by older purchase agreements, but as time goes on, those increases are getting felt more and more. I don’t think they are raising prices “because they can”, but also because they have to. They have a shareholder duty to stay profitable.

Prices for all the stuff that is used to make cars and move them around are getting ridiculously expensive. So don’t be too stunned to see it happen to Tesla vehicles. It is happening in almost every industry.

Really, you don't think Tesla is raising prices just because they can? Do you think Tesla's profit margins are the same as before?

Roughly car prices have gone up 12% from this time in 2020. Speaking just for the Model Y, the price has gone from ~$50k in early 2021 to $59K, which is an increase of 18%.
The increases started accelerating later in the year as the EV tax credits/point-of-sale bill started gaining traction. I understand Tesla is doing what any business would do, increase profits as much as possible when you can. But, I think we need to accept the fact that they are doing this and their price increases are not just covering the increased cost of building cars.

 

[thecavalry]

Really, you don't think Tesla is raising prices just because they can? Do you think Tesla's profit margins are the same as before?

Roughly car prices have gone up 12% from this time in 2020. Speaking just for the Model Y, the price has gone from ~$50k in early 2021 to $59K, which is an increase of 18%.
The increases started accelerating later in the year as the EV tax credits/point-of-sale bill started gaining traction. I understand Tesla is doing what any business would do, increase profits as much as possible when you can. But, I think we need to accept the fact that they are doing this and their price increases are not just covering the increased cost of building cars.

The price of steel is up 200% as of July vs a year ago. Cost of shipping goods in containers is 14 times higher today than in 2019, quadrupling since a year ago.

There are shortages of silicon chips, rubber for tires, and a bunch of other things. No prices are coming down for at least a couple of years.

Even inflation in the US hit over 6% in October.

Add them all up and it’s a wonder prices stayed as low as they did for as long as they have.

 

[Kairide]

The price of steel is up 200% as of July vs a year ago. Cost of shipping goods in containers is 14 times higher today than in 2019, quadrupling since a year ago.

There are shortages of silicon chips, rubber for tires, and a bunch of other things. No prices are coming down for at least a couple of years.

Even inflation in the US hit over 6% in October.

Add them all up and it’s a wonder prices stayed as low as they did for as long as they have.

I would like to reiterate that the average cost of a new car is 12% more now, than a year ago. All car manufacturers are jacking up prices and taking advantage of the shortage to maximize profit. They aren't just increasing prices to offset their manufacturing costs. Tesla has increased their costs ~18% since January alone, with the price increases accelerating as a certain EV credit is getting closer to becoming reality.

So what you're saying is if there were no EV Bill in the works and demand for Tesla was less, you still think Tesla would have increased their prices in a similar manner. You believe Tesla is keeping the same profit margins now and the increase in price is solely to offset the increase in costs.
Wow, you are exactly the customer that Elon dreams about.

BTW, you're using steel data from July, it's November. Steel, along with lumber prices were sky high during the summer. Both have come down. You're Googling needs improvement.

 

[tacos4brkfast]

Helllo....... New member here!
I was very curious to read what other folks are saying about the "Price increase" issue so I chose this section for my first post. You might say "I saw this coming" as I have been "playing" with the configurator for a couple of months (at least), and in retrospect "I should have......" but it is what it is. It does not surprise me to say the least as everything is more expensive compared to last year; but once my order was finished I was shocked (after taxes and fees) to see that the price was very close to what I paid for my new 2018 Q7 (prestige package, even has night vision). To be fair I had a very good discount from Audi and the dealer as this was my 4th Audi, but Geeez, almost $68K is a lot a cheese.
My tentative delivery date is June 2022, and I'm more than comfortable with that, but if these prices continue, I don't see how your average "middle class" family could afford to make the switch to an EV.
I was also seriously considering the Rivian RS1, but I would probably have to wait a couple of years for it. Overall you could say I am a bit cautious, as I hope I can get my money's worth for the vehicle. I will try not to compare it to the Q7 as I know the interior quality and features would eat the MY for breakfast, but dollar for dollar it's something that most of us moving from ICE to EV will see first.
I hope I don't offend anyone and I am more than happy to hear your opinions

 

[thecavalry]

I would like to reiterate that the average cost of a new car is 12% more now, than a year ago. All car manufacturers are jacking up prices and taking advantage of the shortage to maximize profit. They aren't just increasing prices to offset their manufacturing costs. Tesla has increased their costs ~18% since January alone, with the price increases accelerating as a certain EV credit is getting closer to becoming reality.

So what you're saying is if there were no EV Bill in the works and demand for Tesla was less, you still think Tesla would have increased their prices in a similar manner. You believe Tesla is keeping the same profit margins now and the increase in price is solely to offset the increase in costs.
Wow, you are exactly the customer that Elon dreams about.

BTW, you're using steel data from July, it's November. Steel, along with lumber prices were sky high during the summer. Both have come down. You're Googling needs improvement.

Steel prices haven’t really moved since then. It was breaking through to $1800 in July. Still $1800 in November. It peaked at $1945 in September.

If you bothered to do anything other than take issue with a figure from July (like look at the still just as high prices today) or make snarky comments about poor googling, you would see that steel prices are still just as high in November - with no indication of lowering.

Steel futures, yesterday, closed at $1813. Today they closed at $1812.

For further reference, before Covid times steel stayed between $500-800.

Shortages drive prices up. Scarcity is the mechanism - demand exceeds supply, prices go up in response.

 

[AlexZver]

Stupid question
I ordered my MYLR in Sept its due for delivery in May. Can I still qualify for tax credit ?

 

[thecavalry]

Stupid question
I ordered my MYLR in Sept its due for delivery in May. Can I still qualify for tax credit ?

At this point there is no tax credit for any Tesla vehicle. If congress passes the social spending bill with ev credits still in tact, yes. Until then, no.

 

[AlexZver]

Perfect Thank you

 

[boulder.dude]

Tesla could also be jacking up the MY prices merely to tamp down demand and get the waiting time back down to a more healthy level. Waiting 4-6 months to take delivery is not healthy for the business and will shut out a whole class of buyers (which could become lifelong customers once acquired).

 

[dsmking]

Tesla could also be jacking up the MY prices merely to tamp down demand and get the waiting time back down to a more healthy level. Waiting 4-6 months to take delivery is not healthy for the business and will shut out a whole class of buyers (which could become lifelong customers once acquired).

In the short term this helps tamp down the demand and wait time. Also in the short term it helps them bridge the period where the tax credits might be returning.

But I also think they are thinking longer term - raising prices on the existing models to make space for the standard range Y once supply and manufacturing constraints are less of an issue.

 

[BGOwner]

Stupid question
I ordered my MYLR in Sept its due for delivery in May. Can I still qualify for tax credit ?

If it passes, yes cause you have delivery after Jan 1. Got to wait for final approvals to be 100% sure.