-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Who is going to the Tesla Store to protest? 
Late December buyer here so screwed but not as royally screwed as everybody who bought prior to the end of year discounting.
It certainly seems that although price cuts are worldwide, the US MY pricing has been driven by the MY needing to be under the $55k limit to qualify for the tax credit. This price drop for the MY (and M3) is going to put pressure on all manufacturers - now you could buy say a VW ID.4 or a Tesla MY at roughly the same price point. Tesla brings more value than competing manufacturers in terms of their overall experience in the EV world and the Supercharger network. The net is it will be interesting to see if other manufacturers respond with price drops (heck, VW just announced a start of year price increase of $1.5k).
The second thing that I'm thinking is that the Federal credit is a mess now. Seven seat MY up to $80k limit, five seat MY falls under the $55k limit. There is no logic in the VW ID.4 either (RWD 55k, AWD $80k). I suspect there will be more pressure from the auto makers to get this sorted out so that it isn't confusing for the consumer who can see two visually identical cars but one qualifies and the other doesn't). Would Tesla have dropped to get under the $55k limit if the MY 5 seat qualified under the $80k rule? I doubt it.
Tesla wants to be a "luxury" car manufacturer - pricing the MY in line with say VW, Toyota, Kia, Hyundai doesn't help them in this respect. So, now may be the best buying opportunity as if the five seat MY suddenly qualifies for the $80k limit, I wouldn't be surprised to see the price nudge up again.
For everybody saying inventory is piling up, that had been true now.... but during the December discounting, there were less than 100 MY and M3 available in the US (and some of that was a rolling basis as cars came out the factory). With the right price point, Tesla will sell (and they proved that a $60k MY will sell during the last days of December).
It certainly seems that although price cuts are worldwide, the US MY pricing has been driven by the MY needing to be under the $55k limit to qualify for the tax credit. This price drop for the MY (and M3) is going to put pressure on all manufacturers - now you could buy say a VW ID.4 or a Tesla MY at roughly the same price point. Tesla brings more value than competing manufacturers in terms of their overall experience in the EV world and the Supercharger network. The net is it will be interesting to see if other manufacturers respond with price drops (heck, VW just announced a start of year price increase of $1.5k).
The second thing that I'm thinking is that the Federal credit is a mess now. Seven seat MY up to $80k limit, five seat MY falls under the $55k limit. There is no logic in the VW ID.4 either (RWD 55k, AWD $80k). I suspect there will be more pressure from the auto makers to get this sorted out so that it isn't confusing for the consumer who can see two visually identical cars but one qualifies and the other doesn't). Would Tesla have dropped to get under the $55k limit if the MY 5 seat qualified under the $80k rule? I doubt it.
Tesla wants to be a "luxury" car manufacturer - pricing the MY in line with say VW, Toyota, Kia, Hyundai doesn't help them in this respect. So, now may be the best buying opportunity as if the five seat MY suddenly qualifies for the $80k limit, I wouldn't be surprised to see the price nudge up again.
For everybody saying inventory is piling up, that had been true now.... but during the December discounting, there were less than 100 MY and M3 available in the US (and some of that was a rolling basis as cars came out the factory). With the right price point, Tesla will sell (and they proved that a $60k MY will sell during the last days of December).
One tries to make hay while the sun shines. Some day the rain comes.
Make the margins while you can while you have supply better than others that also have demand.
Change those prices to reduce margins as competition comes on, or demand softens.
Is this something special to Tesla? Not really. Remember a cat with gloves doesn't mouse well.
Make the margins while you can while you have supply better than others that also have demand.
Change those prices to reduce margins as competition comes on, or demand softens.
Is this something special to Tesla? Not really. Remember a cat with gloves doesn't mouse well.
Well FML. I just took delivery earlier today at noon of my MYLR and I see this price drop a few hours later. What a dampener on that new car feeling... I feel so f*cked over.
Yeah, sucks. I wonder like when housing prices crashed, if some people will just buy a new Tesla and let them repo the old one, in the process ruining their credit of course. Is 31.1% worth it? probably not, but like buying over priced homes in 2007, people just walked if they felt it wasn't worth paying for something that was much cheaper.
Does not apply to people without loans of course.
JaeTheDev
Active Member
Sure is terrible. Sadly, it does stink for us who purchased a vehicle within the past 90 days or so. it seriously tanked our cars value right after purchasing it.
I don't think it's possible to know how to stock will behave long term. There are enough videos out there and market analysis from pros who ask the question, is Tesla a car company or a tech company? If people see Tesla EVs as a common brand and it's just a car maker, the stock valuation could collapse, even at these stock levels (Gene Munster I think mentions this a lot).
These price cuts sorta goes back to letting folks be at least aware that Tesla cars migh be a commodity brand and not really a lux brand (I don't think they really were with how common they are). It's sorta like the cell phone market where those big 2 players get lots of $$ from their app stores. If Tesla can do that with the Tesla software ecosystem, that will probably justify their growth/valuation and they are sorta willing to just give away their cars with minimal profits (compete with China), but I have my doubts that people really will spend that much for software unlocks for a car.
We'll see how it plays out of course, but Elon wants to move cars and will cut as much as needed to do that (unless he's ready to pause production).
I do feel hosed after just picking up my car in Dec! Free FSD would definitely make me feel better. It would be a smart move on their part to try and at least show they somewhat cared. Doubt any of that would happen. Sucks to lose $15k in 15 days. I have bought 3 Teslas in my life and others have bought one on my recommendation. Dont think I will be having such nice words about Tesla after this.
Cars have also had features removed like USS and the rear brakes on the P are no longer brembo.
The Model Y never really was a deluxe class vehicle IMO (55-85k). The tech is amazing for sure but the vehicle is not on par with others in terms of quality and luxury at this price point.
I thought they would decrease cost if 7 seat option but they increased it to $4,000 and they are back to charging $1,000 extra for MSM paint.
It seems desperate to me to cut prices like this. I still feel they would have been better to make the 7 seat option free or standard.
These price cuts along with the federal credit will surely crash used values and cause resale to tank.
It's a very bold move by Tesla for sure.
The Model Y never really was a deluxe class vehicle IMO (55-85k). The tech is amazing for sure but the vehicle is not on par with others in terms of quality and luxury at this price point.
I thought they would decrease cost if 7 seat option but they increased it to $4,000 and they are back to charging $1,000 extra for MSM paint.
It seems desperate to me to cut prices like this. I still feel they would have been better to make the 7 seat option free or standard.
These price cuts along with the federal credit will surely crash used values and cause resale to tank.
It's a very bold move by Tesla for sure.
JaeTheDev
Active Member
Who is going to the Tesla Store to protest?
America is too soft to do that. They did in China though and got no where.
That being said, they price on my Tesla solar config went down within 90 days of my purchase and I received a $1,100 check because of it in the mail a year ago or so.
Not expecting anything here, but 13k check would be lovely. Hahaha!!! Joking.
boulder.dude
Member
On the bright side, price cut is GREAT for EV adoption and the environment. It will put pressure on competitors. This is the best “good” thing the company has done since they released the MY a few years ago!
The IRA tax credit affected lots of other EV makers too (Hyundai, Kia, Mach-E was completely removed, some ID.4, one would guess new things like the Blazer, etc may not qualify when it's released) so it wasn't directed just at Tesla. Tesla has more volume challenges in China, but there was no way anyone else was going to outsell them in the US in 2023 at all, probably not globally neither so they already won that race.
We'll see how this affects brand loyalty longer term that is much harder to measure.
I paid $55,990 for my MY Jun 2020 plus $7000 for FSD. The same car today is exactly the same, $55,990 though it's now $15,000 for FSD (which no way I would have paid at that price!). It's been quite a ride over the past 2.5 years watching the prices shoot up then come right back to original all at once! Though I know it's a tough pill to swallow for recent buyers I think it's the right call in the current environment. Lot's of home buyers over the past couple of years are in the same boat but these things go in cycles, always "winners" and "losers" in the economic wake. Best you can do is enjoy your car!
You could be right. But I have a different perspective. IMHO, we see now Tesla is using the opportunity to completely screw others not just in the EV market but car market generally. Note, they are not playing safe with investors, otherwise they would lower the prices by some 5%-10% and maybe price the standard range model Y at $54,990, and that would be perfectly fine to maintain the demand at current max production level ... probably. However they have decided to devastate the overall car market prices. Look, Model 3 now competes against Camry and Accord, and Model Y is close to a loaded CR-V and Rav4. The only thing left is they need Cybertruck at the price of a regular F-150. Long term, the investors must be excited and sell F,GM,TM,VW, etc. asap.
The price cuts are going to result in millions of new Tesla customers who are jubilant and couldn’t care less about how bitter recent buyers are. As time goes on, current Tesla owners are going to become a smaller and smaller minority. The EV tax credit is doing what it was designed to. It sucks to be an early adopter sometimes, but c’est la vie.
I’m frustrated by these drops as we took delivery less then 6 months ago. I really feel for those who took delivery year end.
While it doesn’t change the math, It would feel better if the markup was explicit like for other EVs during COVID so buyers knew the loss was certain. With this approach, it feels so much worse. We love the car but WOOF!
While it doesn’t change the math, It would feel better if the markup was explicit like for other EVs during COVID so buyers knew the loss was certain. With this approach, it feels so much worse. We love the car but WOOF!
Production ramping up (Berlin and Texas), supply chain woes slowing (hopefully), and demand down due to the greater economy challenges. Great time to expand sales through price drop. We will see whether they can meet the new demand, or if they miscalculated, but every new EV on the road is a move in the right direction IMHO.
I can see this pushing demand way up and extending new order delivery dates out several months from the current 30-60 day window it sits at now. This will again begin to drive up the cost of the used car market and eventually trickle up to the new units. IMHO, it looks like Telsa is just trying to create a huge demand for it's vehicles again and ultimately slowly begin to push pricing back up.
I bought a 1,200 miles used 2022 MYP about 2 weeks ago from a non-Tesla dealer and I also took a hit due to this price cut. Yes it sucks to lose money but it is what it is I guess and life goes on.
I bought a 1,200 miles used 2022 MYP about 2 weeks ago from a non-Tesla dealer and I also took a hit due to this price cut. Yes it sucks to lose money but it is what it is I guess and life goes on.
Similar threads
- Locked
- Locked
- Locked
