Discussion: Model 3 and Y price drop Jan 2023 / April 2023 / Oct 2023 and All other Pricing Speculation going forward

[WhiteOnWhiteMY]

I think it's best to assume that companies do not care about how customers feel. Maybe the people who work at your local businesses. But a large corporation should care about making a profit, period. Protecting customers is what I expect my government to do.

In the automotive space, I’d say a lot of other brands tend to care a lot about post purchase support. It’s why most if not all other brands have CSI requirements that dealerships must meet in order to maintain brand image. Automotive isn’t like most companies. It’s the second largest purchase most people will make, they want your experience to be good so next time you choose to buy from them.

 

[dachshund]

In the automotive space, I’d say a lot of other brands tend to care a lot about post purchase support. It’s why most if not all other brands have CSI requirements that dealerships must meet in order to maintain brand image. Automotive isn’t like most companies. It’s the second largest purchase most people will make, they want your experience to be good so next time you choose to buy from them.

Good point.

 

[804son]

In the automotive space, I’d say a lot of other brands tend to care a lot about post purchase support. It’s why most if not all other brands have CSI requirements that dealerships must meet in order to maintain brand image. Automotive isn’t like most companies. It’s the second largest purchase most people will make, they want your experience to be good so next time you choose to buy from them.

I believe it's much more complicated than that, the typical car dealer will gladly sacrifice their customer satisfaction score from you in return for taking every last dime then can squeeze out of you. Obviously I'm not saying that Tesla wouldn't take advantage of market situations as well.

 

[eleison]

In the automotive space, I’d say a lot of other brands tend to care a lot about post purchase support. It’s why most if not all other brands have CSI requirements that dealerships must meet in order to maintain brand image. Automotive isn’t like most companies. It’s the second largest purchase most people will make, they want your experience to be good so next time you choose to buy from them.

Tesla is not like any other car manufacturer..... just call him maverick...

 

[BitJam]

Yes, this is exactly what I'm saying. Tesla, without throwing any bones to recent 2022 buyers, is effectively broadcasting to us that they don't care about how we feel, or the financial loss we've taken when it comes to a product that is universally understood got a better holds its value the better it is. And with how they've been doing things (a book price cuts, throwing no bones, removing USS, etc, etc) buying a Tesla is actually rather risky, and the same thing can happen to a future generation of Tesla buyers. I wouldn't want to be in that camp again having gone through it, and Tesla seems to be okay with that because I don't care about making anything right.

You did not answer the crucial question:

What do you think would have been a better business move by Tesla?​

​

I understand that you are pissed. But that does not make this a bad business decision. As I said, the choice was between alienating many/most 2022 buyers and tanking the company. This was not a personal vendetta against you or 2022 buyers in general. It was a smart business decision.

In addition, I imagine most 2022 buyers will not be in the market for a new car until the 2nd half of this decade. By then Tesla may not be concerned about their return business. And by then some may have gotten over the pain and Teslas may have gotten much more economically attractive compared to other options.

You're right, the price of Teslas may continue to decline (eventually). But that's not going to prevent people from buying them. Teslas will sell like hotcakes at the current prices. The general rule of thumb is demand goes up as prices go down.

One of the worst things Tesla could have done was to gradually lower prices. They would not have gotten the tax credit on the 5-seat LYMY, and they would have telegraphed future price decreases further inhibiting people from buying.

 

[DL_Mike]

What do you think would have been a better business move by Tesla?

Throw bones to loyal customers that bought a Tesla despite its high price, and didn't hold out on them until the government made it easier.

In my case, give me the Acceleration Boost for free, would be a minimum, since it's just software. Throw a year of free premium connectivity my way. Heck, give me some free supercharger miles. These are all things that they can do post sale to rectify the bad taste I've been left with 34 days into my Tesla ownership. This is how you make customers who are reasonably unhappy after a sale, happy. It's not like Tesla had no idea some of their customers lost 20k in the value of their car overnight. They aren't oblivious.

 

[hmmwv]

Several posts have stated that their undelivered price now reflects the latest pricing. I got a new email last night on my MYP show the exact same price as before.

Has anyone gotten as explicit confirmation from tesla showing a drive drop for an existing order yet to be delivered.

I emailed the sales associate I’ve been dealing with and have no answer.

I also texted the person I’ve been dealing with

I can’t find a phone number to call. Tesla sales processes don’t seem to allow direct phone calls. What am I missing.

Try going into your account on the website, on the right hand side under the estimate delivery date there is the order agreement, click view, you should see your latest MVPA, if it still shows the latest price, google your local delivery center's number and give them a call. Worst case go there, but maybe avoid today.

I've got a delivery set between January and February for my Model Y LR7. I got an e-mail this morning that showed my base price drop to $52,990, however, I saw my configurations increase slightly. The silver Metallica paint job that was previously included went up $1,000, and my 7 seat option went up from $3,000 to $4,000). Obviously I'm not complaining on the base price drop, but increasing the price on things I locked in previously doesn't seem right. Anyone else see that? Anything I can do?

Same here, texted my SA and was told you what's on the MVPA is the price, free MSM and $3k 7 seater option will not be grandfathered.

 

[Dennisis]

Dropping the prices in one fell swoop was the best option IMO, and I doubt any more cuts will be forthcoming. They’ve reestablished the baseline and will sell inventory quickly - expect wait times to increase again post haste. I expect vehicle improvements are in the pipeline to address the competition. Them being competitive is good for everyone. Personally I bet the overall landscape will be much improved when I’m ready again in two years and this is part of the process - others will have to up their game ASAP, to include charging networks.

 

[ucmndd]

Throw bones to loyal customers that bought a Tesla despite its high price, and didn't hold out on them until the government made it easier.

In my case, give me the Acceleration Boost for free, would be a minimum, since it's just software. Throw a year of free premium connectivity my way. Heck, give me some free supercharger miles. These are all things that they can do post sale to rectify the bad taste I've been left with 34 days into my Tesla ownership. This is how you make customers who are reasonably unhappy after a sale, happy. It's not like Tesla had no idea some of their customers lost 20k in the value of their car overnight. They aren't oblivious.

Who is eligible for these perks? How far back do you go?

What do you do about the guy at day N+1 who now becomes equally butthurt that he just missed out based on the new arbitrary line you've created?

What about people who already paid for the features or services you're now demanding for free?

 

[ord3r]

Who is eligible for these perks? How far back do you go?

What do you do about the guy at day N+1 who now becomes equally butthurt that he just missed out based on the new arbitrary line you've created?

What about people who already paid for the features or services you're now demanding for free?

I don't think Tesla will do this,but one way to approach in the future is have a "30 day price guarantee" that is visible and agreed to so people will feel like they have some protection against overnight drops, while also feeling responsible/agreeing that the cutoff is 30 days. May help mentally. But doesn't work retroactively too messy.

I don't see this happening unless there are a lot of people on the fence waiting for further price drops or something.

 

[Dennisis]

n my case, give me the Acceleration Boost for free, would be a minimum, since it's just software.

What about the people that paid for AB? And Even FSD? Just software but we all agreed to prices and paid accordingly - why should they now just give it away and where does it end?
ucmndd beat me to it I see…

 

[ucmndd]

I don't think Tesla will do this,but one way to approach in the future is have a "30 day price guarantee" that is visible and agreed to so people will feel like they have some protection against overnight drops, while also feeling responsible/agreeing that the cutoff is 30 days. May help mentally. But doesn't work retroactively too messy.

I don't see this happening unless there are a lot of people on the fence waiting for further price drops or something.

More than that, I just don't see how that would be possible without massive amounts of logistical headache. We're not talking about a TV that you pay cash for and walk out with. It's titled property... Most people finance cars so there's a lien holder, loan terms, etc etc. What about leases? You gonna tear up every lease contract you wrote for a month and start over? Many states base registration fees on transaction price, you gonna unwind all that too?

It's just not practical.

 

[ord3r]

No don't need to actually change the titled price, can be structured as a rebate.

 

[804son]

If there is one thing I've learned over the past few years, Tesla is not an altruistic company. They're not going to give away anything that they can sell for an extra dime. I get it, they're a for profit company, but sometimes people want to believe their Lofty mission statements mean that they're looking out for their customer base. In reality they will only look out for their customer base to extent at which it affects their profit.

 

[ord3r]

In reality they will only look out for their customer base to extent at which it affects their profit.

Part of the reason I am anxiously optimistic about macro slowdown/recession. They can't take sales/demand for granted anymore, and will hopefully respond by increasing quality, service, experience, all the things.

 

[Dennisis]

If there is one thing I've learned over the past few years, Tesla is not an altruistic company. They're not going to give away anything that they can sell for an extra dime. I get it, they're a for profit company, but sometimes people want to believe their Lofty mission statements mean that they're looking out for their customer base. In reality they will only look out for their customer base to extent at which it affects their profit.

As shareholders expect any publicly traded company to do.

 

[804son]

As shareholders expect any publicly traded company to do.

Absolutely, This is how business works.

 

[ucmndd]

No don't need to actually change the titled price, can be structured as a rebate.

Maybe. I'm with you though in that this is a highly unlikely outcome.

Furthermore, I don't think a "30 day guarantee" amounts to a hill of beans in a scenario like this.... it's fundamentally inconsequential when talking about the typical transaction price and length of ownership of a vehicle.

Put another way - do you think there'd be any less outrage in this thread if there was a 30 day price guarantee? All it does is move the arbitrary line between the ones who timed things right and the ones who didn't. People at day 31+ gonna be just as mad, angry, and irrational as the folks in here now with the pitchforks that love free market fundamentals right up until it doesn't work in their favor.

 

[snpiperpilot]

FYI Tesla just emailed me a new purchase agreement for my MYP due for delivery in a couple of weeks that explicitly shows new pricing. Happy Friday the $13,000th.

 

[E46M3]

Or u can wait a bit longer, who knows, they may discount even more next month....

I placed an order. I'm fine with the cheapest model Y so far and I want to get the full $7500 credit.