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

[Destiny1701]

Short of Elon giving me FSD for my August 22 MYP, I will never buy another Tesla product again. To lose over 23% car value over night is just not something I'm comfortable ever risking again. I know vehicle's aren't investments, but I also know that they shouldn't lose that much value overnight. He has a chance to make it right for free by giving FSD to those who purchased recently to offset the incredible loss we just incurred and it won't cost him anything. I tend to buy a a lot of vehicles and had cancelled a Bronco to buy the MYP, but seriously regret that now.

What do you mean …your upset your brand new car depreciated 20-25% in year 1? What car doesn’t at least 10-15% driving it off the lot? (Niot counting uber luxury/exotics).

 

[804son]

Old Tweet but I'm assuming Elon's stance on the price matching hasn't changed... View attachment 895313

So Say's the Billionaire.....

 

[WhiteOnWhiteMY]

What do you mean …your upset your brand new car depreciated 20-25% in year 1? What car doesn’t at least 10-15% driving it off the lot? (Niot counting uber luxury/exotics).

Changing MSRP does not equal depreciation, not sure why this isn’t understood by everyone yet. My car is effectively worth 31.3% less before depreciation even comes into play now.

 

[Stirfry]

So Say's the Billionaire.....

Yeah, but he's only a multi-billionaire now, not a super-multi-billionaire .

 

[Kairide]

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.

As you should. The only way a company will make changes is if they see a drop in sales. Competition is only a good thing for consumers.

 

[Choncho]

What do you mean …your upset your brand new car depreciated 20-25% in year 1? What car doesn’t at least 10-15% driving it off the lot? (Niot counting uber luxury/exotics).

Difference is when you buy a brand new car on lot you know the car will depreciate immediately........but also know the MSRP won't be dumped 20% the next day.

 

[eleison]

Yeah that called a company that built decades of goodwill so people want their products and trust them.

Races to the bottom on price never work so their luck has shifted. It’s not going to drive anyone meaningful out of business and now there’s 800k new Tesla owners who will be buying from elsewhere in the future.

What are these 800k owners going to buy?

Tesla has built a competitive advantage (a "moat" as some busines people would say) based on pricing. Would these 800k owners buy an alternative car that was $10k or $15k more expensive? Remember these are the same owners peeved off at their lost of value because cars are now cheaper (i.e., these people care a lot about pricing...).


Gigafactory... giga mold.. custom robots.. vertical integration... etc... etc... these are all competitive advantages that will take years for the competition to overcome.

Other car manufacturers simply cannot make cheaper EVs right now with the same features... period...

 

[fonger]

36k after tax credit for M3 is great for the consumers, it'll force other manufacturers to competes. It just stings so much for us recent buyers, maybe in a few weeks it'll stings less, getting my car ppf wrapped, maybe I'll just have them leave the emblems off lol

 

[Destiny1701]

Difference is when you buy a brand new car on lot you know the car will depreciate immediately........but also know the MRSP won't be dumped 20% the next day.

Valid. I guess it a bitter pill now matter how one slices it. I wonder if banks who financed the car at the max rates a month back can come back and say ‘sorry the lien we have played on the vehicle is no longer sufficient enough a collateral. Please pay down the loan to ‘x’ in order to continue financing arrangement’

Sort or like your home falling in value fast and the mortgage lien is higher than the retail market value. Or margin calls on stocks…

 

[JaeTheDev]

On this edition of "whats Jae doing at the moment while reading these posts"?

Jae's on hold with Progressive as he looks into getting his policy rewritten and adding GAP.

BABAHAHA!

 

[DL_Mike]

So your philosophy is that since Tesla's vehicles are now LESS expensive, you don't want another one? Did I get that right?

Tesla should, therefore, only ever RAISE prices and you'll keep buying them? Am I still on track?

No, the lesson to be learned here is that, with a product that is is well understood in society to be possible to depreciate and resell in 1 or more years to upgrade, that Teslas are too risky in that regard. When some of us who got burned are ready to get new vehicles, we'll remember this play from Tesla and look to other makes that, by then, will have caught up in their offerings, especially luxury, and rest assured that they will be better at holding their value.

It's not about being upset at Tesla. It's about understanding that Tesla's model and business practices make the buy-drive-trade-in customer experience very risky, and while you might not end up with dealership bitter taste in your mouth, you may still end up with a bitter taste, do what's the unique selling point come 2 years from now?

 

[Kairide]

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

Do you really think the Y, or any Tesla is a premium product? Just because it’s expensive doesn’t make it premium. The Y is a mass produced, lower end SUV. It’s more expensive then a Rav 4, but that doesn’t mean it’s more premium.
The new Honda Civic Type R is going for over $70k now. Does that make it a premium vehicle, or just overpriced?
The Y is now priced closer to where it belongs. It was overpriced, now it’s not devalued, but normalized.

 

[lowtek]

No, the lesson to be learned here is that, with a product that is is well understood in society to be possible to depreciate and resell in 1 or more years to upgrade, that Teslas are too risky in that regard. When some of us who got burned are ready to get new vehicles, we'll remember this play from Tesla and look to other makes that, by then, will have caught up in their offerings, especially luxury, and rest assured that they will be better at holding their value.

It's not about being upset at Tesla. It's about understanding that Tesla's model and business practices make the buy-drive-trade-in customer experience very risky, and while you might not end up with dealership bitter taste in your mouth, you may still end up with a bitter taste, do what's the unique selling point come 2 years from now?

So a gradual price decrease over say 6 months would have worked better to soften the blow?

 

[acpd]

I checked multiple metro areas. All MYLR under $55k are gone, but many above $55k are available.

To take full advantage of the tax credit as a single person you need to make at least ~$65,000, but less than $150,000.

The tax credit has a lot more effect than I imagined it would.

Yup seeing the same near me. All under $55k is gone but over $55k is still available.

 

[Twiglett]

Prices change all the time. In reality the pricing compared to what was available in December is a much smaller drop.
I ordered back in May after the first '22 price increase but before the next price increase.
I could have taken delivery in December and got it for $54k after the special offer which is $2k from the current price, but doesn't take the 10k miles of free supercharging that was available then which seems to be worth around another $1k or so.
I hope they sell a whole bunch, at this price they should do.
Must suck to be the competition.

 

[leoita]

Do you really think the Y, or any Tesla is a premium product? Just because it’s expensive doesn’t make it premium. The Y is a mass produced, lower end SUV. It’s more expensive then a Rav 4, but that doesn’t mean it’s more premium.
The new Honda Civic Type R is going for over $70k now. Does that make it a premium vehicle, or just overpriced?
The Y is now priced closer to where it belongs. It was overpriced, now it’s not devalued, but normalized.

I would still say its a premium product
When you put the RAV4 next to MY, the Tesla is still years ahead.

 

[apacheguy]

There is CVRP but Model 3 and Model Y became ineligible after they surpass the MSRP limits - but these price cut should make the eligible again.

See these upcoming changes:How often do CVRP program requirements change? | Clean Vehicle Rebate Project

Per CVRP staff, Tesla would need to apply to the program first in order to be eligible. They are not automatically approved just because they dropped prices.

 

[ucmndd]

So a gradual price decrease over say 6 months would have worked better to soften the blow?

Death by a thousand cuts might help the extremely fragile psyches of recent buyers, but it would be a terrible business decision. When prices are steadily declining, people who don't have to buy don't - they sit on the sidelines for the next price cut.

 

[eleison]

Do you really think the Y, or any Tesla is a premium product? Just because it’s expensive doesn’t make it premium. The Y is a mass produced, lower end SUV. It’s more expensive then a Rav 4, but that doesn’t mean it’s more premium.
The new Honda Civic Type R is going for over $70k now. Does that make it a premium vehicle, or just overpriced?
The Y is now priced closer to where it belongs. It was overpriced, now it’s not devalued, but normalized.

I saw a simple 3 bedroom housing going for $700k... it wasn't a "premium product". I didn't even entertain the possibility of buying it... since then, the prices of those types of houses have come down.

I agree, just because something is more expense doesn't mean it's premium especially for mass produced items. The real value of the item is the cost to make it plus profit to keep the company alive and "doing well".

 

[tonyz1]

Do you really think the Y, or any Tesla is a premium product? Just because it’s expensive doesn’t make it premium. The Y is a mass produced, lower end SUV. It’s more expensive then a Rav 4, but that doesn’t mean it’s more premium.
The new Honda Civic Type R is going for over $70k now. Does that make it a premium vehicle, or just overpriced?
The Y is now priced closer to where it belongs. It was overpriced, now it’s not devalued, but normalized.

I considered it a premium product in the same way an iPhone 14 pro is. Premium isn’t just price or volume. It comes down to how you treat the customer and making sure they are happy with using the product and their purchasing experience. Their actions might’ve been necessary to reduce inventory but they burned a lot of customer goodwill and trained new customers to be cautious so it’s probably no longer a premium product.

Tesla could have been more transparent with their pricing and give something to the customers they screwed over.

Let’s face it no one who bought in the last two month outside of diehard Elon acolytes are happy. All the people defending the move bought before q3. There’s a lot of pissed owners with high disposable income out there who probably wouldn’t buy from them again. Spending $10k unnecessarily for the same product a month later does not leave a good taste in anyone’s mouth and not easy to forget.