Discussion: Model 3 Price reductions - Jan / April / Oct 2023 and all other pricing discussions

[alexgr]

This change is targeting people like me. I honestly didn’t expect to be a Tesla owner. As of Friday I had a Mach E GT on order in since last year that was still 4+ months from possible delivery. I saw the news Friday morning and by lunchtime I placed an order for a MYLR and cancelled the Mach E order. Thanks to Sandy Munro I was already concerned over the complexity a likely more fault prone design of the Ford compared to Tesla. With the price drop there was no way I was paying an almost 30K premium for the Mach E. I decided I don’t need the MYP and can add the 2k upgrade later that gets close enough to my go fast needs.

It is really sad that Ford has missed the opportunity to fix the Mach-E and make it simpler and cheaper to produce.

 

[3sr+buyer]

The funny part is if anyone paid MSRP for at Bolt, close to a SR 3 price.

After GM ran out of EV tax credits, they increased incentives / discounts to match. Then, with the 2022 refresh, they lowered the MSRP in place of continuing the large incentives / discounts. For 2023, they lowered the MSRP again.

 

[launchd]

It is really sad that Ford has missed the opportunity to fix the Mach-E and make it simpler and cheaper to produce.

Ford's EV production is heavily hamstrung due to their reliance on the international supply chain. Ford does not make its own electric motors, batteries, etc. and they do not source those domestically. They are also struggling with the conversion of their ICE production lines to EV/building their own EV assembly sites. So much so that they had to seek outside help from Rockwell. In comparison, Tesla can build a Model 3 every 10 hours with 100% domestically built (in-house) or sourced parts.

 

[Apprunner]

Ford's EV production is heavily hamstrung due to their reliance on the international supply chain. Ford does not make its own electric motors, batteries, etc. and they do not source those domestically. They are also struggling with the conversion of their ICE production lines to EV/building their own EV assembly sites. So much so that they had to seek outside help from Rockwell. In comparison, Tesla can build a Model 3 every 10 hours with 100% domestically built (in-house) or sourced parts.

1 Model 3 every 10 hours is horrifically bad.

 

[T3SLAROD]

Ford's EV production is heavily hamstrung due to their reliance on the international supply chain. Ford does not make its own electric motors, batteries, etc. and they do not source those domestically. They are also struggling with the conversion of their ICE production lines to EV/building their own EV assembly sites. So much so that they had to seek outside help from Rockwell. In comparison, Tesla can build a Model 3 every 10 hours with 100% domestically built (in-house) or sourced parts.

I mean it’s understandable that Ford is struggling and frankly it’s amazing that they are cranking out EVs while also Cranking out ICE at around the World. That truly is amazing. Outsourcing parts isn’t a bad thing to the end consumer especially when right to repair comes into effect.

 

[launchd]

1 Model 3 every 10 hours is horrifically bad.

Do you know what other manufacturers build times are? I don't think you do if you think this.

 

[Apprunner]

Do you know what other manufacturers build times are? I don't think you do if you think this.

So in a 24 hour period, they build 2.4 Model 3s? Or about 18 Model 3s in a week?

 

[launchd]

So in a 24 hour period, they build 2.4 Model 3s? Or about 18 Model 3s in a week?

Volume (how many they can produce at a time) is different than build time (how long it takes to produce a single Model 3).

 

[TesslaBull]

1 Model 3 every 10 hours is horrifically bad.

Well this sounds bad, but is true. However, they don't start building one car and do nothing on any other car until that car is complete. As the car moves from station to station, many many cars are being assembled simultaneously at various stages and across several factories.

 

[Apprunner]

Volume (how many they can produce at a time) is different than build time (how long it takes to produce a single Model 3).

Sorry. Just haven’t seen most manufacturers use time to build 1 car. Usually they talk throughout as it seems more meaningful. Does it matter if Mach E takes 15 hours but can throughout 5k cars a week vs Model Y at 10 hours and 3k per week (numbers used for illustrative purposes). Doesn’t matter right now as ford is battery constrained more than anything.

 

[launchd]

Sorry. Just haven’t seen most manufacturers use time to build 1 car. Usually they talk throughout as it seems more meaningful. Does it matter if Mach E takes 15 hours but can throughout 5k cars a week vs Model Y at 10 hours and 3k per week (numbers used for illustrative purposes). Doesn’t matter right now as ford is battery constrained more than anything.

It absolutely matters. It is what causes bottlenecks and delays which lead to

This change is targeting people like me. I honestly didn’t expect to be a Tesla owner. As of Friday I had a Mach E GT on order in since last year that was still 4+ months from possible delivery. I saw the news Friday morning and by lunchtime I placed an order for a MYLR and cancelled the Mach E order. Thanks to Sandy Munro I was already concerned over the complexity a likely more fault prone design of the Ford compared to Tesla. With the price drop there was no way I was paying an almost 30K premium for the Mach E. I decided I don’t need the MYP and can add the 2k upgrade later that gets close enough to my go fast needs.

 

[alexgr]

Do you know what other manufacturers build times are? I don't think you do if you think this.

can build a Model 3 IN 10 hours, not EVERY 10 hours.

 

[alexgr]

It absolutely matters. It is what causes bottlenecks and delays which lead to

I think, more importantly, the time a car spends on the assembly line affects the cost to build it.

 

[lowtek]

Uhm … they already did the right thing

 

[enemji]

newsflash: Wall Street already expected Tesla to sell EVERY CAR THEY MAKE in 2023... that was always a given. Cutting the price by 20% (!) for the Y isn't increasing Model Y production one bit. the same amount of vehicles will be sold.... but at drastically lower margins....

but everyone who was on the fence to buy something else...is now jumping in to buy a Tesla

 

[enemji]

Show me another car dealer that caused their used market to drop by 20k….

Fanboys need to stop drinking the cool aid. Nothing Elon did was right to anyone that owns his cars. People that pay over msrp understand that they will loose that value. Tesla not having an msrp is very deceiving and people buying never understood that their over paying by 10k. Guarantee if people saw a 10k mark up they wouldn’t have sold anywhere near the amount of cars they did in 2022.

No other manufacturers has done this ever. They wouldn’t ever think o do something this stupid. It’s like a corvette if you pay 20k for the market you understand the value is at the msrp not the price you paid. Tesla doesn’t have msrp so your thinking that the value should maintain its price and depreciate 5% a year like typical cars do. Not 20k + over a 24 hour period.

I guarantee other company’s won’t lower prices because other companies electric cars are entirely dofferent. The Tesla is unique and that was considered a good thing, but a lot of the market prefers traditional electric and will stick to another brand. Most would rather pay a little more for a car company that won’t deliberately crash the used market over night on purpose. Toyota, Lexus, bmw, Chevrolet no one would be that stupid. But Tesla was.

As for laws people always knew he skirted them by not having real dealerships. Democrats have been going after him for Twitter and they almost all own teslas. I’d expect them to go after him for sure if he broke any federal or state laws over this. If he wasn’t skirting the msrp laws and actually posted it then we would be having an entirely different conversation.

Every car dealer in all the history has been selling cars cheaper in the Nov-Feb season via many rebates including many that the customers were not even likely to find out. Only the dealerships had access to that information.

 

[3sr+buyer]

Tesla can build a Model 3 every 10 hours with 100% domestically built (in-house) or sourced parts.

https://www.nhtsa.gov/sites/nhtsa.gov/files/2023-01/MY2023-AALA-Alphabetical-12.29.22.pdf lists various Tesla models as having 40-75% US+Canada parts content. Another 15-25% come from Mexico. None add up to 100% even for all of North America (US+Canada+Mexico), although a few models are in the 90-95% range for North America sourced parts content. The Model 3 RWD is listed with 40% from China (the CATL LFP battery, no doubt).

Of course, building one car every 10 hours is much slower than the actual production rate.

 

[launchd]

https://www.nhtsa.gov/sites/nhtsa.gov/files/2023-01/MY2023-AALA-Alphabetical-12.29.22.pdf lists various Tesla models as having 40-75% US+Canada parts content. Another 15-25% come from Mexico. None add up to 100% even for all of North America (US+Canada+Mexico), although a few models are in the 90-95% range for North America sourced parts content. The Model 3 RWD is listed with 40% from China (the CATL LFP battery, no doubt).

Of course, building one car every 10 hours is much slower than the actual production rate.

Hmm, maybe I misunderstood this statement…

"Tesla is the only major automaker to claim 100% domestic production for all cars it sells in the U.S., well above the industry’s roughly 52% average," said Jenni Newman, Editor-in-Chief of Cars.com. "An all-American workforce producing cars with major components sourced stateside is what helped earn Tesla the top spots."

 

[3sr+buyer]

Hmm, maybe I misunderstood this statement…

"Tesla is the only major automaker to claim 100% domestic production for all cars it sells in the U.S., well above the industry’s roughly 52% average," said Jenni Newman, Editor-in-Chief of Cars.com. "An all-American workforce producing cars with major components sourced stateside is what helped earn Tesla the top spots."

Final assembly is in the US for all Tesla cars sold in the US. However, this does not mean 100% of parts content is from the US.

 

[ml0204]

Currently have a 2020 M3 and was looking to upgrade to a P3 in March. I know everyone is complaining about the sudden "crash" in their resale value, but for those that do not qualify for the tax credit, buying a slightly used Tesla may be the best value. Any thoughts on the best site to find a 2021/2022 P3? Current third party sites are still out of whack.