Another Price Increase? 11/11

[raptor5244]

The used car market is strong *because* of the new car market situation. Not the other way around.

Agreed, my point is if you have a car to trade you can purchase a new at vehicle at MSRP or Tesla increased pricing and get top dollar for your trade to help offset having to pay MSRP. If you don't have anything to trade then you may want wait to purchase until supply levels improve otherwise a lot of folks are going to be upside down due to rapid depreciation in a few years.

For example, let's say a customer owns a 2018 Toyota Camry that was purchased new in 2018 for $30k. Let's assume MSRP was $33k at the time. Normally, that Camry would be worth say $22k but due to current market conditions it is now worth $30k or what they paid for it 3 years ago. What do you do? You can do nothing and feel good knowing that on paper your car is currently worth what you paid for it. You can sell it and avoid all the depreciation and wait on the sidelines until prices come down assuming you have another car to drive. Lastly, you could trade it for a new vehicle. In a lot of cases the increased money you are getting for your trade (plus the sales tax savings) is more than the increased price of the new car. The key is to try and find a dealer that will sell at MSRP or less.

 

[raptor5244]

Well that was the business strategy all along from beginning.... Eliminate competition... And then when no competition... Raise price... Cha ching

From a business perspective it makes a lot of sense. However, it is just a car and there are lots of alternatives. You can buy two new Toyota Camrys for the price of an M3 LR AWD and still have better paint and a nicer interior. EV competition is on the horizon and it won't feel like you are buying an iPhone in one of 5 colors. We will see great styling, more trim options, more colors, nice interiors with better materials and options to personalize the vehicle to your liking. As long as the traditional car companies don't screw up the EV powertrains and start blowing up batteries we should be good.

 

[kjww]

I mean, BEST case scenario would have been to place an order at the 48,9 price and then somehow delay it all the way to Jan for the tax credits haha. I locked mine in at 52,9 and I felt like I had missed out by not locking in a lower price...hindsight is 20/20, eh? I'm now very thankful I put it in when I did!

May I ask how you locked in your price? I made a reservation of MYP last month at $61990 but now when I logged in it shows the price is $62990.

 

[SpaceShipDrvr]

May I ask how you locked in your price? I made a reservation of MYP last month at $61990 but now when I logged in it shows the price is $62990.

Huh, it certainly should not change after order. (Which is what people are calling “locked in”) Are you sure you didn’t forget about a $1k option you added?

But check your email. The day you ordered you should have received an “order agreement” PDF with your selected options and price. If it does not match what you are seeing now, contact Tesla to have them fix it.

 

[kjww]

Huh, it certainly should not change after order. (Which is what people are calling “locked in”) Are you sure you didn’t forget about a $1k option you added?

But check your email. The day you ordered you should have received an “order agreement” PDF with your selected options and price. If it does not match what you are seeing now, contact Tesla to have them fix it.

Never mind, I got it mixed up, it's the same price. Thanks!

 

[ql400]

Does anybody have the price history of the Model Y and Model 3? How often does Tesla lower their pricing?

 

[rob968]

Does anybody have the price history of the Model Y and Model 3? How often does Tesla lower their pricing?

It all depends what's happening in the market. There's a chart floating around in one of these threads that tracks the prices, I'll see if I can find it.

In this chart, you can see how Tesla kept adjusting the price of the Model 3 as the original $7500 tax credit phased out.

 

[CapeOne]

Does anybody have the price history of the Model Y and Model 3? How often does Tesla lower their pricing?

In addition to sticker price adjustments, Tesla has historically offered varying levels of discounts on new inventory cars. The car market is still in a crazy place right now, however, and discounts are pretty much non-existent although there were 1% to 2% discounts on some Teslas several months ago.

 

[CapeOne]

It all depends what's happening in the market. There's a chart floating around in one of these threads that tracks the prices, I'll see if I can find it.

In this chart, you can see how Tesla kept adjusting the price of the Model 3 as the original $7500 tax credit phased out.

The tax credits are really less about consumers saving money and more about EV manufacturers being able to charge/profit more. GM did the same thing with cars like the Bolt when their tax credit eligibility was phased out i.e., to keep the net selling price the same, they significantly increased the rebate to make up for the loss of the tax credit.

 

[AndroidAuto]

I am your typical millennial tech worker, always worried about my long term career viability, as things rapidly change. Growing up and seeing dot com crash, along with 2007-2008 doesn't help make me confident in large amounts of household debt, either. So of course, I'm hesitant to toss 50-60k at a vehicle, even if I can easily afford it. Can't even imagine spending $80-90k on a Rivian with no track record (resale value, reliability).

I keep seeing discussion of this tax credit. Is that official now? Like Tesla are eligible for tax credits, and if so, how much? I thought the bills were still stuck in Congress. I have zero faith in Congress agreeing to do anything productive with their time, or beneficial to us peasants; so I largely tune out the day to day (lack of progress) in Congress.

Since vehicle deliveries aren't until June 2022 at this point; do you guys suggest I just reserve a car today? Even if I reserve it today, I have more than six months to save.

Since the Performance version is so close in cost now; is there any reason for the long range model? Some people seem to suggest the ride quality on the performance is worse, and the cost of all season tires are more expensive.

I think I want the Model Y LR with white interior, white paint, tow hitch, and I keep debating on the rim upgrade and the impact on range. Once I add the rim upgrade.

$60,990 = MYLR + hitch + white interior. 330mi range
$62,990 = MYLR + hitch + white interior + rim upgrade. 318mi range
$65,990 = MYP + hitch + white interior. 303mi range

For $5k, I get rims, brakes, lowered suspension, aluminum pedals, increased top speed, faster performance, less range.

You can tell I am a noob, because I'm stressing over range. Some reason I feel I need to be able to drive 1200 miles in one day, in Sub-Zero temps, hauling 3500 pounds of crap - and this 30 miles in range is going to be what makes it all possible.


Also, does anyone think it is just dumb...to buy a Model Y at these prices? A lot of you point out how the competition is going to be undercutting Tesla in terms of price. With every price increase, the The Model S/X becomes less and less expensive. Anyone expect the competition to raise prices? Rivian has been using the same pricing for like 5 years on their website; with Tesla's behavior, I struggle to believe every other vehicle won't also be inching their price upward.

All of this is hella weird for a person like myself. It's creating FOMO on a $60k automobile purchase. Like if I don't pull the trigger now, by lunchtime it could cost $2000 more, and be delayed until October 2022. Then everyone keeps talking tax credits and 4680 batteries - like I should wait for these 4680 batteries and tax credits to be confirmed.

Would anyone wait to see what kind of build quality Texas can provide? I imagine when Model Y deliveries out of Texas begin, we will see a new batch of problems, specific to Texas? Or to put it differently; I bet the Fremont Model Y is currently the best it has ever been, in terms of build quality.


Argghhhhh. Quit raising prices Tesla. This is hilarious that you can do this, and create FOMO attitudes with your potential customers. I wasn't planning on reserving a Model Y until sometime in spring of 2022....

 

[AndroidAuto]

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.

I wonder how much these price increases over the last 8 months have impacted insurance rates.

I also constantly consider the resale value of such an expensive purchase (expensive for me). The Model Y resale market is going to be one of the most screwy markets ever. Like if I go to sell my Model Y in 3 years, will people assume I spent $48,990 + upgrades? Or are they going to assume I paid $58,990 + upgrades? Right now, it seems the Model Y appreciates in value, which absolutely blows my mind.

All these price changes are screwing with the math I try and use to justify such lavish consumer discretionary purchases.

 

[WhiteWi]

I wonder how much these price increases over the last 8 months have impacted insurance rates.

I also constantly consider the resale value of such an expensive purchase (expensive for me). The Model Y resale market is going to be one of the most screwy markets ever. Like if I go to sell my Model Y in 3 years, will people assume I spent $48,990 + upgrades? Or are they going to assume I paid $58,990 + upgrades? Right now, it seems the Model Y appreciates in value, which absolutely blows my mind.

All these price changes are screwing with the math I try and use to justify such lavish consumer discretionary purchases.

Lol you trying to be all smart about your purchase and money but then say sell in 3 years. Mmm okey

 

[Eric9610]

I think people are also forgetting we have inflation of 5.54-6.5% so when we look at the price increase that needs to be removed from the total as no manufacture would absorb the inflation %.

Also if your worried about an incremental increase in total taxes and registration fees you should not be buying a car $40K+

 

[captanzuelo]

Lol you trying to be all smart about your purchase and money but then say sell in 3 years. Mmm okey

he was giving a hypothetical scenario. And he’s right, it is insane that our Ys are appreciating in value, it seems by the month!

 

[WhiteWi]

he was giving a hypothetical scenario. And he’s right, it is insane that our Ys are appreciating in value, it seems by the month!

What if economy crashes in 3 years? We can what if all day long.

 

[voxel]

I wonder how much these price increases over the last 8 months have impacted insurance rates.

I also constantly consider the resale value of such an expensive purchase (expensive for me). The Model Y resale market is going to be one of the most screwy markets ever. Like if I go to sell my Model Y in 3 years, will people assume I spent $48,990 + upgrades? Or are they going to assume I paid $58,990 + upgrades? Right now, it seems the Model Y appreciates in value, which absolutely blows my mind.

All these price changes are screwing with the math I try and use to justify such lavish consumer discretionary purchases.

If tax credits pass... expected normal 50% EV depreciation in three years. VW and Ford account for this in their lease. Tax credits will push resale values down (there's no free lunch in this world) including the Model 3

EVs Get Hammered on Residual Values, For Now

Three years of depreciation takes a big chunk of value from Mach-E EVs and others.

www.autoweek.com

Tesla Model 3 Bucks Trend of Electric Vehicles Depreciating Rapidly

The average vehicle coming off a three-year lease has lost 52 percent of its value, but a Model 3 only loses about 10 percent, one study finds.

www.caranddriver.com

Electric Models: Depreciation Still Drags Down Ownership Costs

A lifecycle analysis by Vincentric found that total cost of ownership (TCO) for electric vehicles underperforms plug-in hybrid electric and traditional hybrid model counterparts. Running EVs more miles per year has a substantive positive impact on TCO.

www.fleetforward.com

• The average TCO for the hybrids and PHEVs studied at 100,000 miles and five years was $55,778 or $.56 per mile, and for BEVs was $60,116 or $.60 per mile.
• Depreciation is still the biggest cost factor putting downward pressure on TCO for BEVs. On average, the BEV models retain 26% of their original value after five years and 100,000 miles, while the PHEVs and hybrids retain 31%.
  
  
  You want low total cost of ownership? Buy a Subaru Outback or a Toyota Camry.
  
  
  

 

[voxel]

he was giving a hypothetical scenario. And he’s right, it is insane that our Ys are appreciating in value, it seems by the month!

Until the tax credit passes and there will be downward pressure due to it (while inflation pushes prices up also).

 

[pepperoni]

I am your typical millennial tech worker, always worried about my long term career viability, as things rapidly change. Growing up and seeing dot com crash, along with 2007-2008 doesn't help make me confident in large amounts of household debt, either. So of course, I'm hesitant to toss 50-60k at a vehicle, even if I can easily afford it. Can't even imagine spending $80-90k on a Rivian with no track record (resale value, reliability).

I keep seeing discussion of this tax credit. Is that official now? Like Tesla are eligible for tax credits, and if so, how much? I thought the bills were still stuck in Congress. I have zero faith in Congress agreeing to do anything productive with their time, or beneficial to us peasants; so I largely tune out the day to day (lack of progress) in Congress.

Since vehicle deliveries aren't until June 2022 at this point; do you guys suggest I just reserve a car today? Even if I reserve it today, I have more than six months to save.

Since the Performance version is so close in cost now; is there any reason for the long range model? Some people seem to suggest the ride quality on the performance is worse, and the cost of all season tires are more expensive.

I think I want the Model Y LR with white interior, white paint, tow hitch, and I keep debating on the rim upgrade and the impact on range. Once I add the rim upgrade.

$60,990 = MYLR + hitch + white interior. 330mi range
$62,990 = MYLR + hitch + white interior + rim upgrade. 318mi range
$65,990 = MYP + hitch + white interior. 303mi range

For $5k, I get rims, brakes, lowered suspension, aluminum pedals, increased top speed, faster performance, less range.

You can tell I am a noob, because I'm stressing over range. Some reason I feel I need to be able to drive 1200 miles in one day, in Sub-Zero temps, hauling 3500 pounds of crap - and this 30 miles in range is going to be what makes it all possible.


Also, does anyone think it is just dumb...to buy a Model Y at these prices? A lot of you point out how the competition is going to be undercutting Tesla in terms of price. With every price increase, the The Model S/X becomes less and less expensive. Anyone expect the competition to raise prices? Rivian has been using the same pricing for like 5 years on their website; with Tesla's behavior, I struggle to believe every other vehicle won't also be inching their price upward.

All of this is hella weird for a person like myself. It's creating FOMO on a $60k automobile purchase. Like if I don't pull the trigger now, by lunchtime it could cost $2000 more, and be delayed until October 2022. Then everyone keeps talking tax credits and 4680 batteries - like I should wait for these 4680 batteries and tax credits to be confirmed.

Would anyone wait to see what kind of build quality Texas can provide? I imagine when Model Y deliveries out of Texas begin, we will see a new batch of problems, specific to Texas? Or to put it differently; I bet the Fremont Model Y is currently the best it has ever been, in terms of build quality.


Argghhhhh. Quit raising prices Tesla. This is hilarious that you can do this, and create FOMO attitudes with your potential customers. I wasn't planning on reserving a Model Y until sometime in spring of 2022....

If you really want a new EV in the near term, here is my suggestion… make your reservation today and lock in the price before any tax credits get passed (which still may not happen). Tesla will almost certainly bump up the price a few more times after they pass. Worst that can happen is you change your mind and are out $250.

Long term, these cars will not be appreciating and most people will not be able to sell their used Tesla for a profit. Expect to lose money on your purchase. This is a temporary thing where demand outstrips supply. Tesla is accelerating its manufacturing capacity with new factories coming online, and other players are starting to bring more products to market in a serious way. If you can hold off a few years, you are likely to see better products at more attractive prices.

 

[CapeOne]

It should also be noted in this discussion about the proposed EV tax credits that used EVs are expected to be included as well. A $2k credit for EVs less than two years old and priced under $25k plus another $2k for EVs with at least a 40 kWh battery, for a potential grand total of $4k.

If passed, that will end up increasing resales and prices of qualifying cars.

 

[bro1999]

It should also be noted in this discussion about the proposed EV tax credits that used EVs are expected to be included as well. A $2k credit for EVs less than two years old and priced under $25k plus another $2k for EVs with at least a 40 kWh battery, for a potential grand total of $4k.

If passed, that will end up increasing resales and prices of qualifying cars.

Gonna be real hard to find a used Tesla less than $25k though.