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

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Dollars paid for the car are dollars paid for the car.
It's different in a dealership where everything is negotiable, and the dealership is the one who ultimately raises the sale price, not the manufacturer. Got screwed over by dealer markups going away? I'll shop on the other side of town with a dealer who isn't doing dealer markups next time. When a Manufacturer drops the value of the car by adjusting it, it's a blanket price change and solely on the manufacturer, I'll shop a different make entirely next time. This is a side effect of direct-to-consumer sales rather than dealership middle man.
 
I disagree. Savvy buyers have always been able to research what “invoice” is for their particular build and use it in negotiations with dealers as not to get shafted on MSRP. Invoice may go up and down between model years but doesn’t drop 20% overnight.
Did those same “savvy” buyers not have access to the macroeconomic signals that clearly forecast this inevitable outcome?
 
I will say that I think the strategy from OEMs with dealer markups is probably superior to Tesla’s MSRP increase methodology in some ways and maybe the more important ways.

With the dealer markup, you know you’re paying a ridiculous premium. You see the MSRP, you see the markup, and you accept it in a way that I think probably serves to minimize regret afterwards. When that premium disappears because the market balances, oh well it was plainly spelled out to you.

This wasn’t the case with Tesla’s increases, most people don’t track Tesla’s historical prices and wouldn’t have immediately known that prices had shot up $17k for a Model Y LR since early 2021.

Not only that, but it was the dealerships
marking those vehicles up and not the manufacturer — that is a not-so-subtle difference.
 
Did those same “savvy” buyers not have access to the macroeconomic signals that clearly forecast this inevitable outcome?
Fair. Can’t always win. I took advantage of the December incentive as the tax credit was a moot point for us anyways. Knew the price would come down but 20% was beyond expectation.

Irregardless, there were other ways Tesla could have danced around the 55k limitation without pissing off all their recent customers, who evidently, are the ones who were willing to spend.
 
A brand new December bought model Y right now valued in the 30's (probably). Literally half the value of one month ago.
Definitely not. I predict the used Y prices will be around $48K for awhile. People don't want to wait a year to get a tax credit.
What happens to existing orders awaiting delivery at the higher price? Do you get the price difference credit?
Yes definitely you get the new $13K cheaper price. This is always how it's done with Tesla.
 
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That does not change the underlying fundamentals - the Model Y was obscenely overpriced for the market. Selling people less for less does nothing to fix the issue.
It was still selling until it suddenly wasn't. Ultimately, they found profits at that price point. It stopped selling in Q4 cause of the impending credit. The only reason things came to a halt in Q1 is that they got screwed by the IRS' confusing qualifications (which would have been solved easily by offering a software-locked version). Some other factors might have screwed with sales too, but the overall price isn't the main factor in the loss of sales IMO.
 
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Still can't add third row to Performance model to get the credit (as a van).

EDIT: and the third row went up a grand to $4k on the Long Range.

EDIT2: Damn, I guess my trade-in value just tanked along with these drops.

EDIT3: Waiting for the fed to update the definition of an SUV and then order the MYP in the small window before they raise the price to under the $80k cap.
 
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Um... Yes. Yes it did. $52,990. Damn. I had thought they would reduce the whole lot, but not by that much. My guess is that it is as much for the IRA credit, but probably also for the expected drop in sales volume. Perhaps competition heating up too. What was it before? $65,990?

Indeed. The Model Y LR-AWD had a base price of $65,990.

Tesla Model Y Base Price History (6).png


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