It’s like Usain Bolt running against me in 100m. Just because I can run behind him, I won’t dare to call it a competition
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Deliveries of $80k X?
- Thread starter Smitty79
- Start date
It’s like Usain Bolt running against me in 100m. Just because I can run behind him, I won’t dare to call it a competition
Yeah, but eventually, there might be someone who can beat Usain Bolt. Records are made to be broken. I mean, even the Volvo EX90, priced at below $80k, would be a good contender against the Model X. It would be a model I am seriously considering if I were shopping for an EV next year.
I disagree, the fact they have such a large market cap is the reason why they can do this now. They have also said from the beginning they want to make cars that are affordable so the cuts are to be expected. Car prices have also been overinflated through the whole industry the last two years. I think the current prices of Tesla lineup is in line where they should be. Also, what competition. It’s like Michael Jordan playing against 4th graders in his prime.
But the whole point is, it’s not. When it actually becomes a contender, which to me means Profitability not just selling the car. Who else is actually making a profit or will be in the next few years AND sell as many units as Tesla while they keep increasing their output year by year?
Somehow, your theory kind of doesn't make sense. Why cut prices and eat into Tesla's profits when they DON'T have to, based on what you're saying. Tesla could easily sell these cars for more since there's literally "no competition". They could use that money to reinvest into more charging stations, more service centers, etc.
I believe the demand for EV's is starting to wane, and cutting prices at least for Tesla, is the way to keep stoking demand.
I think we are talking about 2 different things here. Is there a better or more compelling EV than Tesla now? I’m very sure many people say there is. But we are discussing how Tesla so monopolize the US market that it can increase or drop its price at a heartbeat without worrying about losing money. The other manufacturers can’t do that because they are all in red producing their EVs. They only cut their price if forced by Tesla’s price cut. They can’t increase their price either because no one will buy their cars if they do.
Interesting point. However, why does Tesla need to cut prices if there is literally no competition? Other manufacturers are already in the red. There's no need to cut prices if they're the only 'compelling' EV now.
@mathnerd88
I've been all over ChatGPT and IRS website to understand the 2024 Critical Minerals and Battery Composition requirements to get the $3500 for each to total $7500 Tax Credit. If I'm understanding correctly, the REQUIREMENTS are 10% MORE than they are for 2023.
Does anyone know if Tesla Model X CURRENTLY qualifies for that 10% increase? OR. will they have to do something different with the 2024 Batteries for them to qualify? OR, is it not important for Tesla to have their Vehicle qualify for a Tax Credit?
Tesla doesn't really care about qualifying for the tax credit or not. They don't get the tax credit and it's for the consumer. What they care about is increasing demand. If the tax credit helps, then it helps.
We don't know where Tesla sources their materials for the battery from, and what requirements they meet or not meet. You'll have to wait until January to know.
What I do know, is that Model X should at least qualify for $3750 since assembly is in NA.
Hello,
I feel your concern! My MSP is also anchored at the 2023.26.100 build. However, my MX managed to receive the FSD Beta update just 2 days after we got it last month. It's puzzling why the MSP is taking longer. The software update realms surely have their own mysteries. I too have the Advanced software updates enabled, yet here we are. Hopefully, the tide will change with the next update!
Hang in there!
Some times you need to boost demand regardless of competition. Why did I say regardless of competition? Because it’s not always price cut. Sometimes it’s price increase to slow down demand. And Tesla has been doing this forever even before the other “competitors” came into the picture
Actually they didn't, as Tesla clearly and openly said on the Q2 investors call that Q3 numbers would be down compared to Q2 due to planned factory downtime for both the MY and M3 models. Turns out Tesla performed exactly as they said they would, it's just no one was listening/paying attention, especially the mass media. There was quite a bit of factory downtime in during Q3 in GigaShanghai for the Highland retooling, and there was downtime in GigaTexas for the MY - as they literally stopped producing the MY AWD 4680 model and are now producing the MY SR RWD FRP battery pack model. Considering these major factory retooling efforts during Q2, the Q3 numbers are quite healthy. Q4 should be an all time high production quarter for Tesla as there aren't any major plans for factory downtime comparatively - though there's still the issue of factory downtime for Fremont to move to the Highland M3 models at some point.
This was announced on the Q2 earnings call last quarter, so for those who were actually paying attention and listening, this is not news, it was fully expected.
Yes, they said exactly this regarding the factory downtime almost three months ago on the last Q2 earnings call, so again this is not really new information. Not sure why the mass media cannot listen and present the actual facts with this in mind. Regarding the price drops, Tesla has always maintained that they will adjust pricing to meet demand as often as needed since they have detailed daily sales and delivery volume reporting. Best guess, they're likely trying to hit the 1.8mm number before end of year, which means they need deliveries to come up to 476k this quarter - and with softening macro-demand in play, providing price incentives is one way to boost demand.
Agree 100% - we can prognosticate all we want - but the future is unpredictable to some degree - we'll only know the facts in hindsight.
Please excuse my slightly uneducated Tesla knowledge, but what is an FRP battery pack?
It’s supposed to be LFP (Lithium Iron Phosphate) battery. It’s a cheaper to produce that the Lithium Ion battery.
@mathnerd88 , you responded..."What I do know, is that Model X should at least qualify for $3750 since assembly is in NA."
I don't think NA assembly is ENOUGH to qualify for Tax Credit of $3750 in 2024. In 2024, IRS is requiring that BATTERY COMPONENTS produced in NA be >or =60% to qualify for $3750 tax credit AND/OR CRITICAL MINERALS extracted, processed ...in NA be >or=50% to qualify for $3750. If BOTH of these requirements are met we receive the $7500 maximun.
My bad, I was still stuck on 2022 EV Tax credit requirements haha when it was switched last year.
Well i hope the Model X never qualifies for tax credits again and prices go to $150K. It would be nice 5 years from now as I sell it to find out I was paid to drive it. Kind of like anyone that bought a house prior to 2020… you got paid to live in your house! AWESOME!!!!!
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