Another Price Increase? 11/11

[ThomasD]

There is a dealer in Louisville that is selling a model Y for 68,000 dollars

 

[Kairide]

There is a dealer in Louisville that is selling a model Y for 68,000 dollars

I'm still curious who pays so much for a Model Y. If I was going to spend $68k, I'd be spending $3k more and going for the Rivian R1S. I know it's still not out yet, but for that money you're getting a lot more than the Y for almost the same price.

 

[hnguy054]

I was/am in the same boat. Totally happy with my 2018 Model 3 LR with EAP (35k miles). The resale was just too high to ignore, and the spreadsheet told me I was a fool not to sell and rebuy another Tesla. Here's a shot of my trusty steed heading off yesterday to a new adventure of her own.

Who did you sell it to? Private party or dealer?

 

[Eric9610]

But there is an impact to customers. The rebate is supposed to be an incentive to encourage consumers to buy EVs. No incentive if Tesla just raises the price and effectively “keeps” the rebate for themselves. And just to add insult to injury, the consumer ends up paying more taxes and registration fees. But hey, if the demand is there, then might as well keep raising the price!

How is a customer impacted if the net price to them stays the same? Customers are only hurt if you assumed the price would go down and I can see in no world Tesla slowing this unless demand dropped to 2week delivery. If demand is this high today with 0 credits then demand will stay high… the benefit for Tesla is more money to develop future tech! For example, I purchased my Y in January 21 if I buy it in 22 with credit my net cost is the same….

 

[OrthoSurg]

I thought buying my Model Y in May was stupid because there would be price decrease over economies of scale.

I was so wrong.

 

[captanzuelo]

How is a customer impacted if the net price to them stays the same?.

I just explained it. Customers are impacted because they 1. miss out on the rebate, 2. pay more taxes and 3. pay higher registration fees.

 

[rob968]

Who did you sell it to? Private party or dealer?

I sold it to givemethevin.com. It’s similar to carvana, and their model seems to be to immediately flip the cars at auction. The transport took mine to a Mannheim auction site.

For reference, carvana offered $42k, vroom $43k. Givemethevin gives you a range ($44.2-46.2k in my case), then you send pics and they give you a firm offer. They came back with $45k for me. The difference with these guys is you can negotiate the offer. I negotiated to $47k and off it went.

 

[rxlawdude]

The $49.9k Cyber truck is looking real good right now...

Till it isn't that price anymore.

 

[raptor5244]

So the price increase is to consume the pending federal tax credits since all the deliveries will come when the credit is available... I said this about 6 months ago, this is a huge win for tesla bottom line with no impact to consumer. Price goes up but credit offsets increase and payments stay the same to consumers...

We also have to remember that Tesla pricing is market based like airlines and as soon as demand slows the price will go down, we saw this in1.5 year trend after initial order delivery.

The $49.9k Cyber truck is looking real good right now...

No chance of a $49.9k DM Cybertruck. The pricing was pulled off the website weeks ago.

 

[raptor5244]

If you've placed your reservation, then you know what your price will be or it'll be lower if Tesla lowers the price.

If you haven't placed your reservation, then you'll get that day's price.

The day MS Plaid was released the price increased by $10k.

The CT reservation is not a lock on price. The pricing has been removed from the website weeks ago. If your CT reservation ever gets pulled, that gives you the option to place an order at current pricing.

 

[raptor5244]

I think if you have an order / reservation in now you will maintain the price as Tesla will be beat to market by Rivian (saw 2 production cars on the road yesterday with paper plates), Ford will have trucks out by Jan, and GM with the Hummer. I have a deposit in on the truck for the middle model but with the credit I may put an order in for top model... My only hesitation on the truck is I want to drive it before I make the final commitment due to size and design.

Rivian RT1 trucks start at $68k for a base. $80k for the max battery pack and nicer interior. The GM Hummer is a like $100k. Ford can't build the Lighting fast enough.

Sadly, there is no shot of a $49k DM CT anymore in this market. With supply shortages, Tesla will maximize profit per vehicle.

Remember when we were supposed to have a $35k Model 3? We have now created demand for EVs but there is very little supply so owning an EV is a luxury item right now, especially with current fuel prices.

 

[father_of_6]

I would feel silly spending 9k more for a car than it's actually worth

LOL... "worth". It's just supply and demand. They can't meet the demand, so the car is now "worth" $58,990, and lots of people will pay that much for it and be happy. If everyone stopped ordering, the price would be dropping month over month.

 

[raptor5244]

The price is approaching to the point that average income family cannot afford to own one now.

Agreed. Remember when the goal was to have a $35k Model 3 SR? I think that was orderable off the menu for about 4 days back in 2019.

 

[stevesark]

Rivian RT1 trucks start at $68k for a base. $80k for the max battery pack and nicer interior. The GM Hummer is a like $100k. Ford can't build the Lighting fast enough.

Sadly, there is no shot of a $49k DM CT anymore in this market. With supply shortages, Tesla will maximize profit per vehicle.

Remember when we were supposed to have a $35k Model 3? We have now created demand for EVs but there is very little supply so owning an EV is a luxury item right now, especially with current fuel prices.

I remember when their big thing was the $35k car and making EVs affordable for the masses, save the planet and all that. The more expensive cars were supposed to pave the way for these.

 

[raptor5244]

Not going to win a ton of friends on a Tesla forum by saying stuff like this, but here goes ...

They could surely push the price for these vehicles into the high 60's, low 70s eventually but then they're getting into pricing where buyers are used to getting luxury feel, especially on the inside. I love my Model 3, but its basic inside, so is the Model Y.

With new EV entries on the horizon, dunno how sustainable this is for them.

Agreed, it is obvious all the money went into the powertrain and software development and control systems. We just need a 2-3 more years to get more EV competition. If the traditional auto manufacturers can get the powertrain/battery tech on point, the rest of the EV will be even better and demand for Tesla will soften a bit and prices will come down. I expect better fit and finish, materials, etc. at these price points. EVs are supposed to simpler and less expensive, not more. You buy 3 Toyota Corollas for the price of a Model Y now.

 

[stevesark]

Agreed, it is obvious all the money went into the powertrain and software development and control systems. We just need a 2-3 more years to get more EV competition. If the traditional auto manufacturers can get the powertrain/battery tech on point, the rest of the EV will be even better and demand for Tesla will soften a bit and prices will come down. I expect better fit and finish, materials, etc. at these price points. EVs are supposed to simpler and less expensive, not more. You buy 3 Toyota Corollas for the price of a Model Y now.

I'd love all the powertrain, software and drive control of a Tesla coupled with a paint job from almost any other car company; lol!

 

[goitsme48]

I sold it to givemethevin.com. It’s similar to carvana, and their model seems to be to immediately flip the cars at auction. The transport took mine to a Mannheim auction site.

For reference, carvana offered $42k, vroom $43k. Givemethevin gives you a range ($44.2-46.2k in my case), then you send pics and they give you a firm offer. They came back with $45k for me. The difference with these guys is you can negotiate the offer. I negotiated to $47k and off it went.

Sold my 2018 LR Model 3 for the same reason as you did. Mine was without EAP with 23K miles...end of September 2021... posted ad on CraigsList hoping some dealer would get the attention and following day local Infinity dealer called me and said he will pay 46K (I was asking 46.5K) if the pics and details were as posted. Went into the dealer next day..3 minute drive by the manager around their parking lot, Carfax checks, title verification and exactly 40 minutes later, walked out with $46K check.
On the way home, cashed the check, came home and reserved Model Y... price is up by 5K... EDD Jan 24 - Feb 24.

 

[Dirty Dog]

I'm a relatively happy Model 3 owner who's toyed with the notion of trading for a Y, but I want something else like a 4860 battery pack or meaningful updates to pay that much of a price increase.

I have both. M3 drives better

 

[Resist]

So Tesla raising prices due to shortages of parts, I don't get how raising prices changes anything. Someone explain it to me. But I wanted to trade in my 2018 Model 3 for a Y, guess that's not happening now. So Tesla actually lost my business.

 

[tomagucci]

Be interesting to see when prices actually go down. Once they do everyone will call and get their prices changed so I imagine won’t be for a while