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Arggh, another surprise price increase (red paint up another $500)
- Thread starter NowIsGood
- Start date
That, and that's slowing them down in actually getting completed cars out the door, hurting their revenues and path to profitability (theoretically achieved with enough output).
An unsold car doesn't make them any money. In fact it loses them money if they have to stash them in non-Tesla rented spaces.
Tesla and profits are two words that have not gone together since the turn of the century.
If they had takers at 10,000 - by golly Tesla should go for it.
No one is forcing anyone to pick Red. No one is forcing anyone to even get a Model 3.
What happens when you order ($2500 deposit) the car prior to these option increases, but have the ability to change your order? Is the pricing consistent at time of order or reset to the latest list price?
I originally placed my order on April 19 then on June 27 changed it to AWD as it seemed a no brainer at $4000 at the time. Back in April red was still $1000
I originally placed my order on April 19 then on June 27 changed it to AWD as it seemed a no brainer at $4000 at the time. Back in April red was still $1000
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Camera-Cruiser
Fully Charged
I don’t know. It’s like going out to a nice dinner with your mate, ordering your drinks, reviewing the tasty things on the menu, and eyeing the special lobster in butter truffle sauce for $150. The waiter leaves while you enjoy your drink and eat cheap complimentary bread and butter.
You talk about the lobster with your mate, and they want you to enjoy the evening, so they say “Splurge.” The waiter comes back to take your order and you select the lobster, but “Oh” the waiter snaps, “The lobster is now $200. They don’t like to be boiled and the chef is finding it more difficult to prepare.”
So you tell the waiter that you have to discuss it a bit with your mate and to come back. So now the evening’s dinner conversation is turning more about the lobster and less about other fun things. Your mates eyes dull a bit, but says, “Just get it.”
The waiter, looking a bit more tired, comes back and you’re about to place your order and they tell you, “The chef just quit because the lobsters put up too big a fight, but it’s ok, we hired a new chef. They are vegan, but will compromise their ethics and prepare the lobster for $50 more, so it’s $250, but it’s still the lobster.”
You look at your mate and they at you. The evening has just become all about the lobster.
What you do next is all up to you.
You talk about the lobster with your mate, and they want you to enjoy the evening, so they say “Splurge.” The waiter comes back to take your order and you select the lobster, but “Oh” the waiter snaps, “The lobster is now $200. They don’t like to be boiled and the chef is finding it more difficult to prepare.”
So you tell the waiter that you have to discuss it a bit with your mate and to come back. So now the evening’s dinner conversation is turning more about the lobster and less about other fun things. Your mates eyes dull a bit, but says, “Just get it.”
The waiter, looking a bit more tired, comes back and you’re about to place your order and they tell you, “The chef just quit because the lobsters put up too big a fight, but it’s ok, we hired a new chef. They are vegan, but will compromise their ethics and prepare the lobster for $50 more, so it’s $250, but it’s still the lobster.”
You look at your mate and they at you. The evening has just become all about the lobster.
What you do next is all up to you.
EnrgyNDpndnce
Member
That’s not entirely true (“the higher the price the less the demand”). There is something called price elasticity, and Tesla is trying to discover how elastic the demand is for these colors. For example, let’s say milk is $3 a gallon and you normally buy one gallon per week for your family. Suddenly milk goes to $4 a gallon, a 33% increase! Will you suddenly reduce the amount of milk you buy and consume? Likely not. The price goes up, the demand will stay more of less the same, because people want their milk. Now there is a limit to the elasticity for everything. If milk goes up to say, $50 a gallon, then a lot of people will likely cut back on their milk consumption, and many will try less expensive alternatives like soy milk or almond milk etc. So what Tesla is doing is trying to find how elastic the demand is for these colors (and other options like AWD, EAP, FSD).
And there is absolutely nothing wrong with Tesla doing this. They are not gouging as some people have suggested. No one is being forced to buy a Model 3 at all, much less in the color red. And, even though they don’t have to, Tesla always AFAIK honors the previous price for those who have already placed an order. So this is not greed, this is not gouging, this is simply a business trying to maximize profits which is EXACTLY WHAT ANY BUSINESS IS SUPPOSED TO DO. Just my opinion. Ronald Ulysses Swanson out!
Comparing milk, that families need, to a $50,000+ car that no one NEEDS, is a nonsensical comparison.
Let the spouse know she has cost the family another $500. I’m sure it will go over well and she’ll immediately approve the purchase
Karen, so far on red only which is kind of odd. But red does seem to be having an inordinate amount of problems lately as you may have seen in the recent body shop pics. So is Tesla trying to discourage red orders, or to cover the cost of rework?
voip-ninja
Give me some sugar baby
Except Tesla is not doing that, they are honoring the prices for those who already ordered. Prices are only going up every month for those who have been fence sitting.
EnrgyNDpndnce
Member
Comparing milk, that families need, to a $50,000+ car that no one NEEDS, is a nonsensical comparison.
Sorry you feel that way, but you have the right to your opinion. I was trying to use a very simple example that everyone would understand to illustrate the concept of price elasticity of demand.
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