Big price drop

[Ostrichsak]

I think the biggest issue for Tesla because of the price cuts is the negative impact to customers brand loyalty. The folks that paid the high prices in 2022 have deep pockets and may have been back to get another Tesla eventually. I’m not so sure they will now.

If they were truly brand loyal they would be excited about how competitive this makes Tesla. Call it what it is: entitled selfishness

 

[eleison]

Im right there with you. I'd drive this POS off a cliff if I had GAP insurance on the loan, but now I have to drive it until the wheel fall off

Elon is such an evil genius... if this was a superhero movie he would be monologging right now about how he deceived the world... and how it wasn't possible to stop him because his plan to screw over everyone happen DAYS ago...

Muahahhahahah... Elon doesn't even know most of these complainers, but yet, he is forcing them to keep HIS cars even though these people are so upset that their temperatures could be comparable to that of a thousand suns...

Evil genius indeed. Our first clue was his evil superhero costume on Twitter (an alt right social media company no less) that he wears as an avatar IN PLAIN SIGHT.

(Op should get gap insurance amyways...)

 

[Hiline]

I think the biggest issue for Tesla because of the price cuts is the negative impact to customers brand loyalty. The folks that paid the high prices in 2022 have deep pockets and may have been back to get another Tesla eventually. I’m not so sure they will now.

Oh I am 100% sure they will when they need a new EV if Tesla has the best product at the best price then. They are just being emotional.

 

[CapeOne]

First, I didn't know about Tesla dropping the price. Absolutely new to me.

Second, stop looking for an excuse for Tesla doing this bullshit. I bought all my cars new and never seen this before. I've owned more than 10 cars.

Lastly, Yes cars depreciate but when your car depreciates $8,000 overnight this is not cool.

For decades, manufacturers have fo been adjusting prices (sometimes significantly) through adding or eliminating rebates/incentives. What Tesla did here is essentially the equivalent of adding thousands in rebates/incentives.

It's also not the first time Tesla has lowered retail prices on their cars. In 2020, for example, the U.S. base price of the MS went from $79,990 at the beginning of the year to $69,420 by the last quarter. Similar price reductions were done in Canada.

This is the nature of business and pricing in general. It is, of course, a bigger deal dollarwise when you are talking about products costing tens of thousands of dollars.

 

[wrapspeed]

It's a very dirty move. The thing is, us, who paid this much, really liked the car. I promise that i won't be buying another Tesla. I will gladly take my almost $100K CAD somewhere else. In the next 3-4 years, other EV makers with catch up with EV tech and it will be an easy switch.

I don't recall Audi, BMW, Mercedes doing it. My wife drives Audi and the price never went down. You could negotiate before the covid nonsense, but the manufacturer doesn't scream at you and pretty much saying "fak you, you dumb ass for buying". It's dirty and screw Tesla.

That’s not entirely true. Other manufacturers sold through dealer networks don’t have transparency like Tesla for their pricing. Take an example for Audi, at a time e-tron had a huge factory trunk money incentive for dealers to move units. Likewise for typical dealers. Consumers just may never know that until u really shop for it.

 

[wrapspeed]

Not here to defend Tesla. If I bought one and paid for all the money, I would’ve been pissed too. But on the flip side I saw this coming. Just didn’t see them being this aggressive. The Long Range has been MIA for most part of 2022 I thought they are waiting for the new law to be in effect to offer it again but instead they dropped the top Performance below the cap so it qualifies. Bold move by Tesla. Now I can see the demand going great again because at the current price it’s an no-brainer. Why even bother looking at any other EVs?

 

[Hiline]

Not here to defend Tesla. If I bought one and paid for all the money, I would’ve been pissed too. But on the flip side I saw this coming. Just didn’t see them being this aggressive. The Long Range has been MIA for most part of 2022 I thought they are waiting for the new law to be in effect to offer it again but instead they dropped the top Performance below the cap so it qualifies. Bold move by Tesla. Now I can see the demand going great again because at the current price it’s an no-brainer. Why even bother looking at any other EVs?

Or even an ICE… a Model 3 is barely more costly than a Camry, if the federal incentive applies.

 

[cdub]

I am honestly stunned that Tesla was able to cut prices by this much.

I'm not. Have you seen their margins?

A Model Y also used to be $48k ($39k SR)

 

[EVindecision]

Tesla isnt a car company. Its like they sell phones, clothing, appliances...anything on sale on black friday. Total scam. I will not buy another tesla. Discounting cars like they're iphones or an appliance. Anyone that bought last year we should all file a lawsuit.

 

[Hiline]

I'm not. Have you seen their margins?

A Model Y also used to be $48k ($39k SR)

I wasn’t aware of how quickly their margins were improving until those cuts. I know now

 

[Nolakai]

This correction needed to happen. The Y and 3 were overpriced, and that coupled with the anti-Tesla sentiment from Elon’s antics led to soft sales. Car companies give discounts. Sometimes it’s through price decreases and sometimes it’s through 0% financing. We bought a Toyota in 2016 and with their financing deal we were able to drive off the lot for literally $0 and didn’t have to make a payment for two months. That deal wasn’t just for what was on the lot. If we’d chosen a different color and had to wait for a few weeks we would have gotten the same $0/down 0%/financing deal.

 

[afadeev]

I think the biggest issue for Tesla because of the price cuts is the negative impact to customers brand loyalty. The folks that paid the high prices in 2022 have deep pockets and may have been back to get another Tesla eventually. I’m not so sure they will now.

Tesla brand loyalty was already in decline before the recent round of price discounts.

"The share of its cars' owners who would buy from the company again has now slipped to 60%, down from 70% before, and below the industry average of 65%."​

Tesla brand loyalty dips below industry average for the first time as it heads to less than 20% market share

In a double whammy of concerning news about future demand for Tesla vehicles, both their market share and their owners' brand loyalty have started to go down. The share of Tesla owners who expressed satisfaction with their car and will order from the brand again, for instance, went below the...

www.notebookcheck.net

Tesla Brand Dropping As Elon Tilts At Woke Windmills. Who Would've Guessed It?

Some recent research has shown what we all knew — Elon Musk's escapades into wildly-incorrect-conspiracy-theory land and his seemingly full-time effort to try to save Twitter in order to "save" humanity (or something like that)

cleantechnica.com

 

[1flossedm3]

So just to confirm those who bought in October - Dec 2022 do not qualify for any tax credits? Tesla really needs to figure out a way to take care of these people because they lost $10k overnight in value. Only thing we can hope for is that demand will exceed production raising used car values.

 

[maxiam]

You know that I literally make my money from people not buying a Tesla right?

I’m just a realist about this thing, and the same people who are complaining now about a car costing less (we get those too) said diddly when their resale values went through the roof and they could trade into a new year model for free.

what's up with the downvote?

 

[maxiam]

Tesla is not a car company. It is a company that makes computers on wheels. BMW, Mercedes, etc.. makes cars..

I laughed so hard. This is probably the most absurd comment I've seen in a while.

 

[dgpcolorado]

For decades, manufacturers have fo been adjusting prices (sometimes significantly) through adding or eliminating rebates/incentives. What Tesla did here is essentially the equivalent of adding thousands in rebates/incentives.

It's also not the first time Tesla has lowered retail prices on their cars. In 2020, for example, the U.S. base price of the MS went from $79,990 at the beginning of the year to $69,420 by the last quarter. Similar price reductions were done in Canada.

This is the nature of business and pricing in general. It is, of course, a bigger deal dollarwise when you are talking about products costing tens of thousands of dollars.

I remember that drop to $70k for the Model S! It was quite a deal at the time but dismayed those who had just paid a lot more.

For awhile Tesla was rapidly lowering prices as their economy of scale improved. Then demand exceeded supply by a lot, especially for the Y, and they started aggressively raising prices to improve margins. And to help pay for rapid expansion, I presume. Now with demand softening, as well as increased competition, they are back to lowering prices again. So it goes.

 

[CapeOne]

Other manufacturers sold through dealer networks don’t have transparency like Tesla for their pricing. Take an example for Audi, at a time e-tron had a huge factory trunk money incentive for dealers to move units. Likewise for typical dealers. Consumers just may never know that until u really shop for it.

It's difficult to make a direct comparison between the two. Tesla is not only the manufacturer but also the dealer as they own all of the dealerships/stores. Any "dealer incentives" at Tesla would just be moving money around within the company, and Tesla doesn't reveal "dealer invoice" or "wholesale" prices like other manufacturers anyway.

 

[CapeOne]

Or even an ICE… a Model 3 is barely more costly than a Camry, if the federal incentive applies.

What are you comparing? The cheapest Model 3 with $7,500 federal credit would be $38,130. A new Camry (before any potential discounts, rebates or incentives) starts at $27,315.

 

[SlimJim]

Model 3 long range now is 44k and performance is 54k.

It is not a long range model.

 

[eleison]

What are you comparing? The cheapest Model 3 with $7,500 federal credit would be $38,130. A new Camry (before any potential discounts, rebates or incentives) starts at $27,315.

SooooooOoo... What u are saying is that Elon still has some more work to do to get Tesla prices even lower. I don't disagree. That is his ultimate goal.