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

[nate704]

It sucks definitely. I paid about $6k more than current price back in November 2021. BUT, I am not sad because cars are meant to be driven. not as an appreciating asset or investment. If you bought the car to flip it, it is your fault. I bought my car to drive at least 4-5 years, so this price drop won't really matter by the time I am ready for another replacement EV for my MYP.

 

[alexgr]

It sucks definitely. I paid about $6k more than current price back in November 2021. BUT, I am not sad because cars are meant to be driven. not as an appreciating asset or investment. If you bought the car to flip it, it is your fault. I bought my car to drive at least 4-5 years, so this price drop won't really matter by the time I am ready for another replacement EV for my MYP.

On the bright side, the prospects of the next Tesla purchase at more affordable price have just become much better. I am not that scared to see the price of the Cybertruck anymore.

 

[Destiny1701]

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).

This assumption doesn’t answer why MS and MX have also dropped considerably.

 

[karthikeya]

I bought MYLR in the first week of December with 3750 discount. I was thinking that I got a great deal by waiting for a week as my initial delivery was on last week of November. Then I saw the news of 7500 discount and then again 10k super charger miles. Now this news. This is outrageous. Don't we have any price protection as a consumer?

 

[TarmacSurfer]

okay...

They have Level 3 active in Germany right now. The reports I’ve read are that it’s very good, reliable and safe. Elon better wake up and start paying attention instead of playing with his new shiny $44B object.

 

[nate704]

They have Level 3 active in Germany right now. The reports I’ve read are that it’s very good, reliable and safe. Elon better wake up and start paying attention instead of playing with his new shiny $44B object.

So, after GM was the EV industry leader, it is now MB for FSD leader? okay

 

[C-Bus Y]

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.

I agree they expect a huge surge in demand and they have been, and continue to scale production to help with this demand.

No real winners (from a business perspective) when prices fall. Consumers benefit 100%, but everyone else suffers.

Is this an “investment” by Tesla to secure more market share? Possibly. But as soon as they want to make more margin rate the share will quickly erode.

I believe this move just made Tesla a commodity whereas before the vehicles felt more ‘special’. Now they are just basic transportation and that could have an impact on demand when other EV’s are available that are better built.

 

[Destiny1701]

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.

I have a 3.2% rate on my 22’ MYP in Canada back from July. It’s now 6.4%.
I paid 82.7k cnd all in for blue/tow.
Same config is now 80k cnd but at 6.4%.

I believe I’d rather the lower interest over years as net cost is cheaper. My payment is actually less than a new MYP today.

I feel for those who bought over last 2 months though. Tesla should at least provide free EAP as compensation.

 

[louiedogg16]

Canceled in late November. Going to re-place order now.

Lol at all the big brainers saying demand was too high for Tesla to adjust the price.

 

[AndrewZ]

I bought MYLR in the first week of December with 3750 discount. I was thinking that I got a great deal by waiting for a week as my initial delivery was on last week of November. Then I saw the news of 7500 discount and then again 10k super charger miles. Now this news. This is outrageous. Don't we have any price protection as a consumer?

All you can really do is work with the information you have. I would have said more price cuts were a certainty, but you still never know.

Depending how the next months go, these cuts might still not be the last. Deflation is a heck of a thing.

 

[Destiny1701]

I bought MYLR in the first week of December with 3750 discount. I was thinking that I got a great deal by waiting for a week as my initial delivery was on last week of November. Then I saw the news of 7500 discount and then again 10k super charger miles. Now this news. This is outrageous. Don't we have any price protection as a consumer?

Zero other than gap insurance should your car become a write off.

It sucks.

 

[Arrosto]

It sucks definitely. I paid about $6k more than current price back in November 2021. BUT, I am not sad because cars are meant to be driven. not as an appreciating asset or investment. If you bought the car to flip it, it is your fault. I bought my car to drive at least 4-5 years, so this price drop won't really matter by the time I am ready for another replacement EV for my MYP.

That's my opinion, too.

However, it took some time for me to decide to go for the MY RWD and not for the LR, due to the price difference.
Now ... I could have purchased the LR at the same price.

It's more that ... I would have another car, rather than another value.

 

[cdub]

Yes, according to their eligibility requirement that SUV base MSRP max at $60K. They should be update their guidance re Model 3 and Model Ys.

Now a 53K Model Y can be potentially had for about 45K after 7.5K CVRP rebate and 7.5K Fed tax credit.

Wow!

Wait there's a California clean vehicle rebate still?

 

[matthewsjl]

This assumption doesn’t answer why MS and MX have also dropped considerably.

No, it doesn't - I suspect prices there were just too damn high.

But, specifically, the MY has been targeted at that $55k limit.

 

[BigTonyTones]

Wait there's a California clean vehicle rebate still?

I dont think California ever reached 7.5k rebate

 

[Bp25]

I personally don’t care whether the price went up or down after I purchased the car but the secondary effects are tangible. For a while I was worried that if my car was totaled, it would be difficult to get a replacement. Then the insurance kept going up, probably due to replacement cost increase. I hope the insurance will now come down with these price cuts.

 

[alexgr]

I have just visited macheforum.com for hardcore Ford Mach-E lovers. They are ordering Teslas and dropping their Mach-E orders as we speak now!

 

[nate704]

I agree they expect a huge surge in demand and they have been, and continue to scale production to help with this demand.

No real winners (from a business perspective) when prices fall. Consumers benefit 100%, but everyone else suffers.

Is this an “investment” by Tesla to secure more market share? Possibly. But as soon as they want to make more margin rate the share will quickly erode.

I believe this move just made Tesla a commodity whereas before the vehicles felt more ‘special’. Now they are just basic transportation and that could have an impact on demand when other EV’s are available that are better built.

But all the other legacy auto makers don't have room to drop prices and also they have very limited supply and production rate, so Tesla's move to drop prices significantly will hit them hard in terms of sales.
Would you buy EV6/Ioniq 5 for $10k-$15k more? or GV60 for $20k more?

 

[house9]

I feel bad for everyone that bought in the last few months as this price drop is massive.
In a perfect world Tesla would give away a years worth of FSD, premium connectivity, Super Charging, etc… to recent buyers to “make things right”, is that going to happen - I doubt it

But just to flip things around, lets play out this scenario:

- 2025-03-15 I purchase a cybertruck at $60,000 USD (So do 100,000 other people)
- 2025-04-15 Tesla raise the price to $70,000 USD due to high demand
- Should I and the other 100,000 purchasers pay Tesla $10,000 because their prices went up?

I’m pretty sure we can all agree that would be insane.

 

[AndrewZ]

I have just visited macheforum.com for hardcore Ford Mach-E lovers. They are ordering Teslas and dropping their Mach-E orders as we speak now!

Capitalism at work to the benefit of consumers, do not expect the competition to sit idle.