Discussion: Large price reduction Across Tesla vehicle family 1.12.2023

Tesla has reduced Model Y and Model 3 prices DRASTICALLY. Now several models will qualify for the $7,500 tax incentive until at least March.

Here is a picture of the price reductions.

It is important to note which cars will now qualify for the tax credits and which won’t.

Model 3 RWD qualifies for the Tax credit until March. The effective price for a no option Model 3 RWD should now be about $36,500 after the tax credit.

Model 3 LR should qualify for the tax credit. However, you can’t configure it on the site. You will have to find one already built but not sold to get one.

Model 3 Performance is under the $55k cap now. However, it is not listed on the government website as being eligible. The Tesla website explicitly says it qualifies right now but this may be incorrect. You might find that when you file your tax return in 2024 they deny it because it is not listed as being eligible with the government.

Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

List of vehicles that are eligible for a 30D clean vehicle tax credit and the amount of the qualifying credit, if purchased between 2023 and 2032.

www.irs.gov

Model Y LR now qualifies. The effective price for it is now about $45,490 after tax credits.😳😭

Resell values have been OBLITERATED! These cars are essentially worthless on the resell market now.

This really is a monumental shift in pricing for Tesla. They were already dominating the market and this can only strengthen their lead.

None of the Model Y Performance cars will qualify for the tax credits but that price is now less than I paid for my 2022 Model 3 Performance($59k).

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(moderator note: In model 3 subforum this will be THE thread on this topic. All discussion on this price cut in this subforum will be moved in to this thread, so there will not be multiples of this topic in this subforum)

 

[Ritz]

I don't fully agree with your specific analogies, but I concur that the EV market will mimic the mobile phone market.

That's why people should not jump on this deal unless out of necessity-- EV prices have nowhere else to go but down in the near future (barring another event that perturbs the supply chain), or you will get more advanced features for the same money.

An alternative view....I've had my 3P for almost 3 years. FSD is now more than double what I paid so I'm thinking if someone could capture that price difference it would offset some of the depreciation lost on the car (assuming they don't buy FSD at the new price) and you could benefit from the new lower base price and even potentially get the $7.5k tax credit as well.

I've been toying with getting a new 3P just to get a fresh battery and the newer HVAC system. Unless I'm missing something obvious, this seems like a no brainer to get a new 3P for next to nothing.

Best,

 

[turns2stone]

I've been toying with getting a new 3P just to get a fresh battery and the newer HVAC system. Unless I'm missing something obvious, this seems like a no brainer to get a new 3P for next to nothing.

I did just that, for my '20 M3P. This was late Dec, with the $7500 and 10K SC miles. Delta is $1500 vs. today (less value of 10K SC miles) and red/black M3P is not eligible for tax credit.

I'm still happy with my decision. Got a fresh battery, better range (vs. the '20 M3P), faster MCU, heat pump, and the other upgrades.

I did not get FSD this time, but I did get EAP. I paid $7K for FSD on my '20. But until FSD takes incremental leaps, it doesn't add any value to me for just driving around town. Fun party trick, but it's not like it can come pick you up from 10 miles away. Now that might be worth the $15K.

 

[Ritz]

I did just that, for my '20 M3P. This was late Dec, with the $7500 and 10K SC miles. Delta is $1500 vs. today (less value of 10K SC miles) and red/black M3P is not eligible for tax credit.

I'm still happy with my decision. Got a fresh battery, better range (vs. the '20 M3P), faster MCU, heat pump, and the other upgrades.

I did not get FSD this time, but I did get EAP. I paid $7K for FSD on my '20. But until FSD takes incremental leaps, it doesn't add any value to me for just driving around town. Fun party trick, but it's not like it can come pick you up from 10 miles away. Now that might be worth the $15K.

Yeah, I won't be buying FSD on my next one. EAP is "good enough" for what I need.

Best,

 

[turns2stone]

Yeah, I won't be buying FSD on my next one. EAP is "good enough" for what I need.

Best,

Part of me thinks (hopes?) that at the end of one of these upcoming quarters, Elon will do a '2 day special' on EAP/FSD upgrades to add a little revenue boost.

Right now the upgrade from EAP to FSD is $9K. No way I'm down for that, but at $2-3K, I could be swayed.

 

[Ritz]

Part of me thinks (hopes?) that at the end of one of these upcoming quarters, Elon will do a '2 day special' on EAP/FSD upgrades to add a little revenue boost.

Right now the upgrade from EAP to FSD is $9K. No way I'm down for that, but at $2-3K, I could be swayed.

Yep. And on resale.....software, unlike the car itself, shouldn't depreciate. You have the software and you are entitled to updates. It doesn't matter if you bought it a year ago or 5 years ago. Assuming that the only limitations would be features related to hardware that didn't exist in the past.

Best,

 

[mrpizzatacular]

Yep. And on resale.....software, unlike the car itself, shouldn't depreciate. You have the software and you are entitled to updates. It doesn't matter if you bought it a year ago or 5 years ago. Assuming that the only limitations would be features related to hardware that didn't exist in the past.

Best,

Would EAP/FSD transfer with the car or the owner in the resale scenario?

 

[Eden77]

Would Tesla give a FSD free of charge to those who purchased M3 or MY 2023 right before the price drop?
I think that would be faire thing to do.
I just got my MY a month before the big price cut ..... also not having Ultrasonic sensors is kinda sucks!

 

[enemji]

Would EAP/FSD transfer with the car or the owner in the resale scenario?

It does not transfer

 

[amirishere89]

Well, I bet there are a lot of that 2 million that don't think its a beauty, but want it for other reasons. Sort of like a 20 year old getting married to a 90 year old person.

haha yes fair point.
either way, 2 million people have lined up for it.

 

[Ritz]

It does not transfer

In theory, it goes with the car. So if you sell the car, the new owner also gets FSD. Tesla seems to be intentionally vague about it though.

Best,

 

[Apprunner]

In theory, it goes with the car. So if you sell the car, the new owner also gets FSD. Tesla seems to be intentionally vague about it though.

Best,

It transfers for sure. You get the resale value on FSD no matter what. If you sell it to Tesla, they either remove FSD or upcharge you for it.

 

[[email protected]]

Would Tesla give a FSD free of charge to those who purchased M3 or MY 2023 right before the price drop?

Yes, I think they would. Tweet Elon and demand your $15k FSD cause you feel ripped off.

 

[vickh]

Yes, I think they would. Tweet Elon and demand your $15k FSD cause you feel ripped off.

when do you think the cut off for purchase date should be? 1 month, 2 ? See my point?

 

[Eden77]

when do you think the cut off for purchase date should be? 1 month, 2 ? See my point?

I would say Q4 2022....

 

[[email protected]]

I would say Q4 2022....

Why not Q3 2021? It wouldn’t be fair if Q4 2022 gets FSD for free!? Basically, there isn’t a purchase price guarantee once you drive off the lot with your new Tesla.

 

[enemji]

In theory, it goes with the car. So if you sell the car, the new owner also gets FSD. Tesla seems to be intentionally vague about it though.

Best,

Right. My bad. It does not transfer to the sellers new Tesla. It is tied to the VIN

 

[vickh]

I would say Q4 2022....

Ask the Q3 22 people how they feel about that...

 

[Stew-2]

Q1 22 has entered the chat…

 

[Keninblaine]

While I paid more for my 22 M3LR a year ago than someone buying one now, I also benefited from selling my previous car at an amazingly good price. Anyone buying during the higher prices was apparently willing to pay that higher price at that time.

 

[ThomasD]

I am willing to bet that it is costing Tesla a lot of money to have their Traded in Used Cars sit right now. If a new car is only 3 to 5k more than a used one people are going to purchase new cars. The cars that Tesla took in on trade a few months ago are worth less now. Tesla has too much money into them and those cars are competing with cars that Tesla paid less for on trade in during the past few weeks. The older cars will keep loosing value until Tesla sells them at a break even point or at a loss.