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Big price drop - LR down $10k, Plaid down $21k

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I'm not sure I can agree with this statement. Dropping the price might give Tesla an advantage in retaining marketshare of the EV space; as of 7 years ago, Tesla's marketshare could only go down since they and Nissan were virtually the only show in town. But this is going to hit their nice profit margins and while the company can absorb quite a bit, the shareholders are not going to be happy.

I chalk this up to the market normalizing after the pandemic/stimulus/demand pull-forward that the likes of Peloton, semiconductor, and software as a service stocks experienced.

A friend of mine just got traded in his Model 3 for a new Y. It was originally slated to be delivered in April but they pushed it forward to the week before Xmas, he won't be happy when he finds out about the price drop. But now this makes me wonder if there will be a big price drop on the lease returned models since their new car counterparts have dropped dramatically. Perhaps Tesla will finally have their sub-$35K car for sale...a 3-4 year old Model 3/Y.
It most definitely will change the used market. Tesla’s for everyone!!!!!!!
 
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I'm not sure I can agree with this statement. Dropping the price might give Tesla an advantage in retaining marketshare of the EV space; as of 7 years ago, Tesla's marketshare could only go down since they and Nissan were virtually the only show in town. But this is going to hit their nice profit margins and while the company can absorb quite a bit, the shareholders are not going to be happy.

I chalk this up to the market normalizing after the pandemic/stimulus/demand pull-forward that the likes of Peloton, semiconductor, and software as a service stocks experienced.

A friend of mine just got traded in his Model 3 for a new Y. It was originally slated to be delivered in April but they pushed it forward to the week before Xmas, he won't be happy when he finds out about the price drop. But now this makes me wonder if there will be a big price drop on the lease returned models since their new car counterparts have dropped dramatically. Perhaps Tesla will finally have their sub-$35K car for sale...a 3-4 year old Model 3/Y.

For some reason people think COGS only goes up.


Not to mention that a good chunk of recent sales are from back order list with lower prices.

Sure, margins will take a hit compared to some orders but not as much overall as one thinks. Also will make more in volume. TSLA will be dumb for a while yet but the company is doing wonderful.
 
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...A friend of mine just got traded in his Model 3 for a new Y. It was originally slated to be delivered in April but they pushed it forward to the week before Xmas, he won't be happy when he finds out about the price drop.
Well, if he got it the last week of Xmas, Tesla was including a $7500 immediate discount which was nice. Depending on the Y, and options (Grey paint went from free to $1000, 7 seater price went up $1000), he may have done fairly well.
 
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This is like 2018-2019 all over again. Remember when the S MSRP was $70K?
I remember ordering the S Plaid+ and seeing my order "demoted" to Plaid with the joy of "you won't pay the price hike" and "Elon says the Plaid is so good, the 'plus' isn't necessary" … and I replied "but the Plaid+ was not acceleration, it was 520 miles' range" to which the reply was a deafening silence followed a few weeks later by "you didn't answer us, your order is cancelled."
 
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Tesla has been really good at cutting cost and being efficient. I wonder how low Tesla can go when producing cars.. They must be the most cost efficient car company right now.
If you look at the Munro cost assessment, Tesla is multiples of all competitors in terms of percentage profit per unit. Tesla could continue to cut msrp all of 2023 and bring the Cybertruck at very low prices if that's what the market dictates.
That said, I think the first 12 months of CT production will be high end, priced above the Model X … a $150K-200K variant with quad motor, quad steer, 1MV, 1MW … no reason for Tesla to discount their new cash cow for the first few hundred thousand buyers.
 
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The LR price is back to $1,000 more than I paid in October ‘21. A bit more reasonable.
LR is back down to $14k more than I paid in September 21 (but I ordered much earlier and is why I couldn't change my order to add the 21" wheels/ no matter how much I wanted them, it wasn't worth paying an extra $10k to get them). As someone else said, the prices are probably almost back to where they would have been without the pandemic supply chain issue that made all cars more expensive.
 
Exactly.

I added it because we need apples to apples. You can't just say they lowered the price without mentioning they took away a major feature. Anyone with an S wants Enhanced AP, so once you put that back in you are at the same $100k price that most have paid over the past year.

Prior to this change, EAP was included.
Confused. My 22 (June but based on early 21 pricing) did not come with EAP as EAP did not (re)exist until like mid to late 22. Only option you had until like fall of this year was FSD and no way in hell would I be dumb enough not to pay for that. This is a US statement as I understand other regions may have had EAP as an option before the US
 
Components, materials, and shipping prices were high last year and have finally come back down to be reasonable again. Makes sense that Tesla is passing those savings back to buyers. While Tesla is doing the right thing, seems like other automakers/dealers are still riding the wave of high prices, even though the costs to make them have come down. Perhaps Tesla's price changes will make others reduce their prices, but I suspect others will milk it for all they can.