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

[Imanozi]

"OMG! It is so unfair!
"
... IRS and Pete Buttajudge

Edit: this spells the end to the EV competition. Tesla to 99% of the market. And actually, it is sad.

Hopefully the news is positive if you own Tesla Shares now.

 

[vickh]

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.

RIght and no previous buyer complained since it's opaque thru dealers.

 

[1flossedm3]

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.

I have a 22 Model 3 Performance with 6,000 I may be willing to sell. PM me.

 

[ml0204]

I have a 22 Model 3 Performance with 6,000 I may be willing to sell. PM me.

You are better off holding on to that car. The cost for a new 2023 version of your car, including the tax credit is down to $47.5K. Your price would need to come down to the low $40k range now.

 

[Stew-2]

I have a M3P I bought Feb ‘22 so just under a year ago with 10k miles now. Yeah it sucks that the same car is now 5k less than when I bought it, not counting the possible tax credit on top of that. But the thing I keep thinking about all these price cuts is “hmmm, this could be the perfect time to upgrade to that Plaid…”

 

[mrpizzatacular]

Trying to see if there's any details on how the $7,500 works with leases, so I chatted on Tesla.com.

 

[alexgr]

Hopefully the news is positive if you own Tesla Shares now.

... i wish. All money spent on cars, I'm broke. But I still have some coins for popcorn.

 

[Icoutin]

That is a bummer but if you were OK paying that amount the other day then you still should be OK paying that amount. It still is a really great car.

Undoubted agree

 

[FairlyOldGit]

Writing from the UK . . .
I'm looking for a 2019/20 M3 Long Range in blue at the moment.
Can we assume that used prices will come down by equivalent amounts?

 

[teslick2]

Or you can just understand that’s business and giving away things for free is not good business. You cannot mix socialism and capitalism as you see fit to benefit yourself

I’m going to nitpick. Socialism is when the government controls the means of production, and unrelated to this conversation.

Tesla is a private company that chooses what it wants to do or not do to retain its customer base. Since investors measure Tesla on how many vehicles they deliver, it’s in the company’s best interest to retain customers as well as seeking out new ones. In this situation, some free supercharging miles and/or a discount on FSD or other software/hardware accessories would help retain those customers who purchased slightly before the price drop.

 

[csammy]

Trying to see if there's any details on how the $7,500 works with leases, so I chatted on Tesla.com.

What did they say?

 

[Operator64]

I’m going to nitpick. Socialism is when the government controls the means of production, and unrelated to this conversation.

Tesla is a private company that chooses what it wants to do or not do to retain its customer base. Since investors measure Tesla on how many vehicles they deliver, it’s in the company’s best interest to retain customers as well as seeking out new ones. In this situation, some free supercharging miles and/or a discount on FSD or other software/hardware accessories would help retain those customers who purchased slightly before the price drop.

I’ll mark you down for the “free handouts socialism” category

 

[mrpizzatacular]

What did they say?

Hmm weird, seems part of the post got cut off. They didn’t know what they were going to do and are awaiting further guidance.

 

[1flossedm3]

You are better off holding on to that car. The cost for a new 2023 version of your car, including the tax credit is down to $47.5K. Your price would need to come down to the low $40k range now.

Im holding till after March. Tax credit dissapears then. Car is $54k again. Tax credit is also a CREDIT against your returns not $7500 off and you have to qualify for it. So sick of hearing its a default credit. Cant wait till its gone in March and we can get back to normalcy. Tesla wont be able to meet demands anyways so used car market will go back up.

 

[The Long C_0_N]

So, if you buy a house and the housing market goes to sh*t, you expect a refund check from the seller?!?

 

[teslick2]

I’ll mark you down for the “free handouts socialism” category

Tell me you don’t understand Tesla’s business, how the stock market measures them, quarterly earnings, and targets without telling me you don’t understand Tesla’s business, how the stock market measures them, quarterly earnings, and targets.

 

[vickh]

Hmm weird, seems part of the post got cut off. They didn’t know what they were going to do and are awaiting further guidance.

My AZ store said they were saying tough luck. But he knew I was a prospective buyer (who's seen this movie before in 2019) I believe TSLA did not do price adjustments for those who took delivery, maybe SC miles?

 

[Kokukenji]

So, if you buy a house and the housing market goes to sh*t, you expect a refund check from the seller?!?

Although I get your analogy, it's different. The way Tesla sells their cars (Direct) is unique. The way the pricing is advertised for all to see is also unique for a car company. Unfortunately there's nothing that it really compares to 1 to 1 until we see other auto manufacturer doing the same.

Sure, it's buyers beware as always but there are ways companies can "try" to work with the general public or at least their actual customer base that purchased their products.

 

[lowtek]

Analysts are like a$$holes, everybody has one ...

 

[Lavender]

How is that different from any other new car, where you might (for example):

1. See an MSRP of $40,000 for the car you want.
2. Buy it for $39,000 from a dealer willing to sell it for that.
3. A month later, see a new manufacturer incentive of $5,000 so that dealers are now willing to sell it for a net of $35,000 or less?
4. See used car prices for that car drop similarly.

Main difference is that the price change on the other car is not visible in MSRP, but is just as real as a price change on a Tesla.

The difference is that never in my history of owning over 20 cars, has the trade in value lost 20+% overnight.

Writing from the UK . . .
I'm looking for a 2019/20 M3 Long Range in blue at the moment.
Can we assume that used prices will come down by equivalent amounts?

The problem here in the US anyway, is that all of the used Tesla's sitting on lots are priced based on what the used car dealers had to pay during the pricing bubble. So someone traded in or sold their Tesla to a used car dealer to take advantage of the bubble, and now the dealers are trying to at least break even on what they paid out -meanwhile you can buy a new one for less than what they are trying to sell low mileage trade ins for.