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

[sunwarriors]

Are you suggesting that further price cut is possible?

I have been critical of Tesla's Pieces for months and even I can't think they can go down any further. But nothing would surprise me. WoW.

I think it's all supply/demand. Anything is possible. The cars were honestly not selling IMO at the current prices. I think the search was maxing out in areas I check.

You probably have to figure out how much it costs Tesla to make these cars and that's probably closer to the floor they will cut to. People here stress their great profit margins so they have always had room to cut prices. Whatever is that price is about as low as they will probably ever want to go I'd guess.

If anything, this just made every other EV less desirable so it should definitely drive volume and clean up some of the inventory. Whether the prices go back up will again depend on supply and demand, but I think it'll be hard for buyers to pay the old price again unless we have another early 2022 car pricing market.

 

[DL_Mike]

Really though, the US government bears some of the blame in how they design tax credits. Instead of progressively (i.e. $1 credit for every $5 below $75k, up to $7500 in credits), it's this binary cutoff that results in abrupt price changes/levels.

 

[c00sebookpro]

I picked up my MYLR on 12/30 and for the $7500 off plus 10K supercharger miles. I looked up the same arrangement today and it is about $4500 cheaper than I paid. The 10k miles is worth probably $1000 or less to me since so probably won’t use all of them in 2 years. So I paid about $3500 more than I would have if I waited.

I'm in the same boat as you. I picked up a MYLR 12/22. If I picked one up before March I'd get a better price and $7500. I'm not too salty about it, but I might consider trading in my 2021 M3LR for a performance. It now qualifies for the $7500 back.

 

[ord3r]

Sign a waiver for what exactly?

I hereby sign to waive my right to speak negatively about Tesla on the Tesla Motors Club Forum

 

[WhiteOnWhiteMY]

No, it's not. Exact same impact on buyer once mark ups go away

See below

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 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.

 

[stopcrazypp]

I'm not pissed, I'm disappointed in Tesla's seemingly arbitrary pricing. The car I received 30 days ago costs basically the same to build as the car that is being delivered tomorrow, despite the $13k less tomorrow's owner is paying, FSD included. We're taking about MSRPs, not dressing up that dealerships do. And we _hate_ dealership games that result in different car owners getting different prices, and I would hope that Tesla stayed out of that company.

Further, if Tesla would have allowed me, for example, to pay with credit card, like I would have been able to do for a $80k television/AV/seating at, say, Best Buy, I'd be able to take advantage of price drop protections, offered both by Best Buy and my credit card. But that's another story.

Basically, it's going to be hard for Tesla to pretend you're buying experience is different that other makes when at the end of the day, you get screwed anyway.

That IS the Tesla buying experience. The price can raise by a few thousand if you miss it by a day. The price can drop a few thousand literally one day after you take delivery (that is what happened to people when they did that other recent drop). The difference is that the price is set nationwide, not by your ability to negotiate with a given dealer. So if the car was worth the price to you at the time of delivery, you know you are paying the same price as others taking the delivery that day.

 

[tonyz1]

This definitely hurts since the Tesla Model Y was a stretch purchase for me back in December and I could've probably waited until January. This is worse than dealing with the dealers - not sure I'd buy another Tesla at this point with all their games - much much worse than dealer games at this point.

Was going to buy premium connectivity subscription and EAP but at this point I don't want to give them a cent more than I already have.

 

[Kairide]

I'm not pissed, I'm disappointed in Tesla's seemingly arbitrary pricing. The car I received 30 days ago costs basically the same to build as the car that is being delivered tomorrow, despite the $13k less tomorrow's owner is paying, FSD included. We're taking about MSRPs, not dressing up that dealerships do. And we _hate_ dealership games that result in different car owners getting different prices, and I would hope that Tesla stayed out of that company.

Further, if Tesla would have allowed me, for example, to pay with credit card, like I would have been able to do for a $80k television/AV/seating at, say, Best Buy, I'd be able to take advantage of price drop protections, offered both by Best Buy and my credit card. But that's another story.

Basically, it's going to be hard for Tesla to pretend you're buying experience is different that other makes when at the end of the day, you get screwed anyway.

Tesla has always had arbitrary pricing, they own the manufacturing and sales. For all the positives of eliminating dealerships, this is one negative. They can increase or decrease prices as they wish since there’s no across the town competition for the same vehicle.

Since the pandemic, prices have been going up a few thousand every few months. Now the prices are correcting, because demand took a hit at the current price. Everyone knows what goes up, must come down. Physics and economics 101.

No dealership lets you pay for an entire car on a credit card. It’s not just a Tesla thing. They get charged anywhere from 2-5% of the cost swiped by the credit card company. On a $70k purchase, that’s a lot of lost revenue for the company.

You’re dropping $80k on home theater equipment, you’re the last one who should be whining about a $13k price drop on a car?

 

[sunwarriors]

I totally feel the pain and will try to get some from Tesla if I were one of the new owners.

However, I am pessimistic about the outcome. Although FSD looks like a free software add-on, the development costs a lot, and you may potentially buy it in the future (probably at a higher price!). Hence, it is not free to Tesla. Also, if they provide free FSD to new owners without FSD, how can they deal with the ones with FSD? The simplest solution will be to give nothing to be fair.

Tesla is just removing the "increases" in the past 2 years. As the car market becomes stable and the economy is bad, they definitely need to do that although I don't expect the drop will be that significant in a single step.

I'm of the belief that FSD won't keep going up in price and don't buy Elon's claim of it being worth $100k or whatever. A lot of videos I watch states so and so would have never bought it for $15k, $10k, etc...If anything, that's something they can cut the price on being software, but that's just my opinion.

 

[WhiteOnWhiteMY]

You’re dropping $80k on home theater equipment, you’re the last one who should be whining about a $13k price drop on a car?

He was using that as a comparison, not saying he actually bought 80k in AV equipment lmao

 

[tonyz1]

The worst part is Tesla basically devalued the Model Y from a premium product to the same category as a Rav 4.

 

[ucmndd]

I’m legit amazed by the number of people that react so poorly to transparent pricing changes when it happens to not work in their favor.

How many of you have been here for the past two years super stoked that the order you locked in pre price increase entitled you to a better deal than the schmuck who bought later? How is it any different when the trend reverses?

 

[DL_Mike]

That IS the Tesla buying experience. The price can raise by a few thousand if you miss it by a day. The price can drop a few thousand literally one day after you take delivery (that is what happened to people when they did that other recent drop). The difference is that the price is set nationwide, not by your ability to negotiate with a given dealer. So if the car was worth the price to you at the time of delivery, you know you are paying the same price as others taking the delivery that day.

I get it. I guess I'm used to buying things online using my credit card, and taking advantage of consumer protection laws, customer-friendly retailer policies, and credit card protections.

My takeaway an as a new Tesla owner is that Tesla wants all of the perks of selling direct and online, with none of the liabilities and customer-friendly policies.

It's going to be hard to convince me to not look elsewhere when I'm due for my next EV. You can explain it to me however you want, but at the end of the day, a brand is also built in the intangibles and the customer experiences.

 

[ucmndd]

The worst part is Tesla basically devalued the Model Y from a premium product to the same category as a Rav 4.

If by “de-valued” you mean “returned it to the reasonable levels they used to be, and to a level where people will actually buy them in 2023”, I agree.

Tesla didn’t do squat. The market decides what these cars are worth, and anyone who thought a base model Y was actually worth $66k in the long run was smoking the good stuff.

 

[ord3r]

It sucks when it doesn't go in your favor, not surprised people are upset. Tesla is going to burn goodwill and piss people off when they price drop there's really no avoiding it with this model or pretending like it doesn't suck. It just is what it is.

 

[cdub]

When Teslas stop qualifying for tax credit in March

Why do they stop qualifying in March?

 

[BitJam]

I'm not pissed, I'm disappointed in Tesla's seemingly arbitrary pricing.

The price was not arbitrary. I predicted this price. It lets people buy the LR Y with two $1K options and still qualify for the tax credit. I think the disqualification of the 5-seat Model Y caught Tesla by surprise. They had spent years planning on and investing in making the Model Y their core car for continued exponential growth. Lowering the price now to take advantage of the tax credit makes much more sense then trying to retool their Austin Gigafactory to start making Model 3s.

Yes, this totally sucks for recent buyers. But it's not unusual in the tech industry. Tesla had to choose between pissing off many Q4 2022 buyers and basically tanking the company.

The worst part is Tesla basically devalued the Model Y from a premium product to the same category as a Rav 4.

I disagree. It's a premium product at a Rav 4 price! If, as Tesla plans, the Model Y becomes the best selling car in the US then it will inevitably have less cachet than it does now. Oh well.

 

[sunwarriors]

Responded to your post as did others. It was just a measure to avoid lawsuits based on the battery fires.


That's the opposite thing, which Tesla offers too. If you put in an order, you get to keep the old price on a Tesla, even when Tesla raises the price. You also get the new lower price if Tesla lowers the price up to the price it is to delivery. However, after you take delivery, the transaction is over.

This is different than what people are discussing here. It's a price drop that happened after delivery and people want compensation for the price drop.

True on the price protection, maybe I read the other person's post wrong and thought he was saying price increases weren't protected or something.

For the Bolt, even though there were the waiver, it was still $ off to match the reduced price change after someone bought it. I don't think everyone who bought a Bolt way ealier got this $ or price adjustment just to not sue so it was still to give these buyers $ back after recently paying a lot more, waiver or no waiver.

 

[Hiline]

The 66k price was designed to stop people from ordering amidst production delays.
Now that production levels are at all time high and consumer demand is tanking, the car has gone back to its normal pricing.
I wasn’t smart enough to wait for pricing levels to go back to early 2021, but I bought a car at a price I could afford with the features I was well informed of. This was the best I could do.

 

[tonyz1]

If by “de-valued” you mean “returned it to the reasonable levels they used to be, and to a level where people will actually buy them in 2023”, I agree.

Tesla didn’t do squat. The market decides what these cars are worth, and anyone who thought a base model Y was actually worth $66k in the long run was smoking the good stuff.

Maybe it was worth $66k, maybe it's not - but flipping the price on your customers like this is something no other company would do and expect to have any good will left. They could've had a lot more transparency over this decision then they did. I have no plans to spend a cent more with this company based on how they treat their customers.

Buyer beware indeed.