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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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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.
Or you sit on the sideline until the next price cut. Or you decide to buy from someone else at your target price point. How do you know the company isn’t screwing you further?
 
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.
In case of Tesla, it is its functionality that make it premium. And the supercharger network makes Tesla an exclusive product.
 
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Let’s face it no one who bought in the last two month outside of diehard Elon acolytes are happy.
Being unhappy and being irrational are not the same thing.

I totally get the frustration with poor market timing. We've all been there. It's indeed an unhappy thing. It's normal to be unhappy. It's not rational to blame individual companies for needing to respond to macroeconomic conditions in order to remain a viable business.


Honest question: What is your solution to this problem? What does a favorable outcome look like to you?
 
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There’s a lot of pissed owners with high disposable income out there who probably wouldn’t buy from them again.

Tesla cars are suppose to be for average people... for the masses.. not those with "high deposable" incomes.

Mercedes, Ferrari, audi, etc... those cars are suppose to be for those that care about branding.. nothing has changed.. those cars are still available...
 
Tesla cars are suppose to be for average people... for the masses.. not those with "high deposable" incomes.

Mercedes, Ferrari, audi, etc... those cars are suppose to be for those that care about branding.. nothing has changed.. those cars are still available...

Yes they are available - I think the bigger point is people don’t like getting screwed and no one likes being out $10k unnecessarily, I’ve worked with the super rich and they are some of the stingiest people I’ve met.

I would probably buy a Toyota or Honda over a Tesla at this point. Probably have at least another 3 cars in my lifetime and they won’t be teslas.
 
Some people are a$$ hurt now but if they think logically when the time comes to buy their next car they'll do what they've always done, buy the best value for their money at the time. I seriously doubt many will say "Tesla has the best XXXX but because they dropped their prices last year I'll buy a Ford!" Or if they do they're silly IMO....
 
Tesla cars are suppose to be for average people... for the masses.. not those with "high deposable" incomes.

Mercedes, Ferrari, audi, etc... those cars are suppose to be for those that care about branding.. nothing has changed.. those cars are still available...
Tesla cars have mostly NOT been for average people...ever.
Initially, they were specialty market products.
Then they became virtual signaling accessories.
Slowly, they became proven solutions.
Pronouncements of being a new "Peoples' car" have been made many times but never once realized.
 
Yes, this is a downside but it is dwarfed by the surge in demand and the surge in new customers. This drastic price reduction bodes well for long term demand despite a mini-boycott by disgruntled 2022 buyers.

Of course this sucks for recent buyers but that does not mean it's a bad business move by Tesla.

It's not easy to measure long term effects. After the initial buyers jump in and inventory drops, will Tesla raise prices back up? Will prices be back at these levels for the long term? Will inventory pile up again after this after everyone who blinks, purchased and they have to cut further if inventory piles up?

It's not possible to know at this point and it's all questions.

Tesla has some inventory level they like. They clearly did not like the 1400+ yesterday. If I was buying, my concern will be they have a ton of manufacturing capacity. This puts concern on supply.
 
Not sure I agree with this. I am somewhat conservative with finances though.

For me a car for the masses is something below $35k (CDN). Again I am pretty conservative with $ so YMMV.

How do we know that tesla can't do that right now.. but because of demand, they are taking in as much profit as they can while building as many cars as they can. (Profit that is used to reinvest in more factories, and r/d)

You are right though... to full fill Elons original dream of replacing ice cars, tesla cars must be affordable to the masses. Tesla will get there if they haven't already.
 
Why does it say until 3/2023? The ira credit value may be reduced??
The Treasury Department is expected to finalize the battery material rules for the IRA in March. Until that happens, any all EV batteries assembled in North America qualify. The price reduction brings the MSRP to under the $55,000 limit. I reserved an AWD VW ID.4 Pro S Plus. When I found out about the price drop this morning, I ordered a blue Model Y. I have a pickup date of next Saturday, 1/21/2023! The Tesla MSRP is $1,700 less than the ID.4 MSRP.
 
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How do we know that tesla can't do that right now.. but because of demand, they are taking in as much profit as they can while building as many cars as they can. (Profit that is used to reinvest in more factories, and r/d)

You are right though... to full fill Elons original dream of replacing ice cars, tesla cars must be affordable to the masses. Tesla will get there if they haven't already.
Ah yes, I think I see what you were getting at in your OP. I wonder what their profit per car is right now...info is probably out there somewhere, but like I said I am supposed to be working ;)