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Another Price Increase [Oct 2021 & Nov 2021]
- Thread starter El joe
- Start date
talkingevs
GO AVS! 2022 CHAMPS!
It's getting a little high now. I wouldn't pay more than 41k for the SR+.
I guess when they have the order backlog of 8 months, they can ask ANY price now. My guess is that Tesla needs to slow down the order rate now anyhow until they ramp up Texas production.
I have a CT on pre-order, but considering delays, I am contemplating MY. And I am now waiting for (1) new Model Y and (2) this crazy price hikes and backlog to ease somewhat next year ... hopefully ... maybe ... please please don't order this awful bad Tesla ...
I have a CT on pre-order, but considering delays, I am contemplating MY. And I am now waiting for (1) new Model Y and (2) this crazy price hikes and backlog to ease somewhat next year ... hopefully ... maybe ... please please don't order this awful bad Tesla ...
GenSao
Member
I wonder if the SR+ price going up and the other trims prices not as much is an indication that the non-battery part prices have gone up quite a bit, but the battery prices are actually coming down, so the price change balances out in the higher range cars? Is there any recent data on the margin on each trim?
Or is it solely a matter of supply and demand?
Or is it solely a matter of supply and demand?
Only trims with the longest lead time had price hikes. This seems to be supply and demand mainly. My guess is Tesla will start building Austin2 factory by the end of winter and another US location in the middle of 2022.
I smell the death of Ford and GM.
Without tax incentives help, Tesla is free to increase prices well above Ford's Mach-E and GM's Bolt. In the same time, at 30% automotive margins, Tesla could theoretically sell M3 LW AWD for $35k, M3 SR+ for $30k and still be profitable (this implies though a complete freeze of all developments, investments, and R&D). If Tesla has 20 million/year production capacity right now, every other car maker will be out of business by the end of 2021. This is incredible and starts to be somewhat scary. Maybe Elon should by Ford, turn it, and donate to the children of Dune ...
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Gauss Guzzler
Safety Score = 42
More interesting than the price increase is the 8 month delivery time. This along with the weird change to LFP packs with prismatic (gasp) cells seems to suggest a cell shortage - which would make sense considering that they've spent the last few years focused on starting production of 4680 cells rather than increasing output of the old 2170s.
Tesla is facing huge competition in China right now and I'd bet that they need every LFP pack they can find in order to gain traction in that market against overwhelming odds. It would make sense for them to temporarily shut down LFP exports while they grapple for position. Meanwhile back home there aren't enough 2170's available either so you can see why they'd opt to make (3) high-profit Model Y's instead of (5) low-profit M3SR's given the same number of cells.
Tesla is facing huge competition in China right now and I'd bet that they need every LFP pack they can find in order to gain traction in that market against overwhelming odds. It would make sense for them to temporarily shut down LFP exports while they grapple for position. Meanwhile back home there aren't enough 2170's available either so you can see why they'd opt to make (3) high-profit Model Y's instead of (5) low-profit M3SR's given the same number of cells.
I need to replace my 10-yo SUV that does 16 mpg and that hurts at the pump.It may be because they don’t really want to sell the SR+ any more. The lead time to get one is June when the AWD and Performance models are still available by end of year. And now the price gap between SR+ and AWD is only $6,000. Between the 8 month lead time and $6K price difference it pretty much makes it pointless to purchase one.
Gauss Guzzler
Safety Score = 42
This is crazy, they're quoting 11 month lead times for the Model 3 and 10 months for the Model Y!
And recall that they recently increased the order fine from $100 to $250, eliminated the first year of free connectivity, the first 6mo of free Supercharging (referral), and the $1500 CA rebate has dropped to $750. Plus all the other recent cutbacks like Homelink, lumbar, radar, and the 14-50 pigtail.
All this while opening huge new factories in Nevada, Texas, Germany, and China.
I think they know something about the upcoming federal EV tax credit that we don't.
And recall that they recently increased the order fine from $100 to $250, eliminated the first year of free connectivity, the first 6mo of free Supercharging (referral), and the $1500 CA rebate has dropped to $750. Plus all the other recent cutbacks like Homelink, lumbar, radar, and the 14-50 pigtail.
All this while opening huge new factories in Nevada, Texas, Germany, and China.
I think they know something about the upcoming federal EV tax credit that we don't.
Economics 101, supply and demand forces at work. Seller's market right now. It only makes sense to buy if you have a worthy trade-in right now, which will help to offset the high new car prices.
Most new cars, if you can find any on the lots, have dealer markups on them. A good deal right now MSRP. Eventually as supply returns prices will stabilize and drop a bit but probably never back to pre-pandemic pricing. That said, who know how long this will take? Some think a year, some say 2 years, who knows...
boriszima
Member
Those are some long waits. Reminds me of back in the days, when some of us put $1,000 to order Model 3 when it was announced and waiting years? into late 2017 and 2018 to actually get it. Those "dark" times are back. Owning a car for 3 years, worth it since i had a good running car, but if one is without or car, or on its last leg.. no wonder used Tesla are gong for as much as new ones if not more in some cases.
Supply and demand 101 when you view Tesla in isolation, but buyers also have substitutes which includes other brands, or simply buying/keeping an ICE car. People will only pay so much for a Tesla before they decide it's not worth the premium. It's not "that" special any longer, and I bet lots of those 8-month orders will drop off as time goes by. We've had this before.
No doubt, but there are still very few desirable EV available on the market and they are all expensive. Furthermore, since the used market is on fire many are getting ridiculously high trade-in value, which is helping to offset the increased new car prices. Also, don’t forget gas is now $3-$5 a gallon now depending where you live.
Eventually, vehicle prices will stabilize but who’s knows when at this point. Some say a year, some say two years. Orders just keep stacking up so Tesla might as well raise the price and maximize the profit per vehicle. Dealers are doing the same thing for ICE based vehicles on the lots, charging $3-5k markup on in stock vehicles. $15-25k ADM for C8 Corvettes, that have 12 month lead times.
Or perhaps that's the *reason* for raising the prices... so that those who have put down a deposit have more reason to follow through (since they've locked in at the lower price).
SR+ is now 44,990, but the good news is MSM as a color option is now free.
LR is now 50,990.
Performance is now 58,990.
LR is now 50,990.
Performance is now 58,990.
Gauss Guzzler
Safety Score = 42
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