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

[WhiteOnWhiteMY]

What about “factory cash back” or “rebate”offers? I received $10k off a new car purchase before.

Nothing affects used car values as much as MSRP does. As long as the manufacturer's suggested retail price doesn't change, other factors do not affect its perceived value as much. Changing MSRP changes the item's base value, regardless of sales, markups, etc.

 

[Ray_R]

Nothing affects used car values as much as MSRP does. As long as the manufacturer's suggested retail price doesn't change, other factors do not affect its perceived value as much. Changing MSRP changes the item's base value, regardless of sales, markups, etc.

So when Tesla offered a $7500 rebate, that was ok. And if they had offered a 20% rebate, that would have been ok too. But lowering the MSRP by 20% is unacceptable?

 

[WhiteOnWhiteMY]

So when Tesla offered a $7500 rebate, that was ok. And if they had offered a 20% rebate, that would have been ok too. But lowering the MSRP by 20% is unacceptable?

Offering rebates, sales, etc., do not affect used car values as much as changing the MSRP does. I don't know what you want me to tell you lol.

 

[Ray_R]

Offering rebates, sales, etc., do not affect used car values as much as changing the MSRP does. I don't know what you want me to tell you lol.

I guess if you buy a car intending to sell it in the near future, or happen to crash it in the near future, MSRP matters. But if you intend to keep it long term, I would argue no one cares what the MSRP was five or more years ago. The market will dictate the value at that point.

 

[hmmwv]

A Tesla buyer says he got a $12,000 discount after asking for a reduction on his order following big price cuts

One customer told Insider that Tesla rejected his request for an adjustment, but he later learned of a cut reflecting big reductions for new orders.

markets.businessinsider.com

Anyone saw this stupid article? Clearly a lot of "journalists" don't do the basic research when reporting Tesla, in this case reporting Tesla's normal practice of adjusting price of yet to be delivered orders as news, LOL.

 

[WyoDude]

A Tesla buyer says he got a $12,000 discount after asking for a reduction on his order following big price cuts

One customer told Insider that Tesla rejected his request for an adjustment, but he later learned of a cut reflecting big reductions for new orders.

markets.businessinsider.com

Anyone saw this stupid article? Clearly a lot of "journalists" don't do the basic research when reporting Tesla, in this case reporting Tesla's normal practice of adjusting price of yet to be delivered orders as news, LOL.

Ridiculous

 

[oc_eabrego]

I finally broke down and just ordered. How long dies it take for delivery estimate to update? Mine says Jan - March

I just checked my order and it states Feb 18 - Mar 19, and I ordered it on Jan 14.

 

[240vPlug]

MSRP certainly has the biggest impact on used prices. EV Tax credits though do have a high impact as well. When buyers look at used examples they will factor in the tax credit (if applicable). So even with just the tax credit if $7,500 it was a significant hit on used prices.

Between both of these things it will cause a major hit on used values. Nobody is going to pay more for used them new...at least not anymore. Now, if wait times increase to greater than six months again that could change but more likely buyers would go to a competitor since there continue to be more and more very compelling EV introduced.

Road tripping is still a huge advantage for Tesla even here in 2023. I also think their tech is superior still. Tesla needs to continue to innovate though. I would like to see an "app store" for the Tesla so we can get more of our favorite apps built in to the system. AA and CarPlay come to mind.

This price reduction is not a permanent fix. If they let the product stagnate or competition catch up that will be a big problem.

 

[AndrewZ]

Not only are there broader and deeper implications in changing the Manufacturer Suggested Retail Price (the acronym doesn’t sufficiently drive home what it is) versus temporary discounts/incentives, the IRA language necessitated a drop in MSRP. The IRS/Treasury know exactly what they’re doing and wrote the text so temporary discounts/incentives don’t count towards the price limit, the vehicles need a manufacturer suggested retail price below the caps.

The effects of this will likely ripple through the car market for some time to come

 

[flgatorfan]

Not only are there broader and deeper implications in changing the Manufacturer Suggested Retail Price (the acronym doesn’t sufficiently drive home what it is) versus temporary discounts/incentives, the IRA language necessitated a drop in MSRP. The IRS/Treasury know exactly what they’re doing and wrote the text so temporary discounts/incentives don’t count towards the price limit, the vehicles need a manufacturer suggested retail price below the caps.

The effects of this will likely ripple through the car market for some time to come

They wrote the text in the context of legacy auto with dealers where they have model years and notional MSRPs. With Tesla where the manufacturer is the retailer every sale is at "MSRP" and they adjust that figure as needed given market conditions.

 

[AndrewZ]

They wrote the text in the context of legacy auto with dealers where they have model years and notional MSRPs. With Tesla where the manufacturer is the retailer every sale is at "MSRP" and they adjust that figure as needed given market conditions.

That's not the only way Tesla adjusts price, we just came out of last quarter that saw temporary $3,750 and then $7,500 discounts. I don't think it's the last we'll see of those discounts either.

But yeah Tesla adjusts actual MSRP far more frequently as well. It's good for people on the way up, but it's not good on the way down.

 

[flgatorfan]

That's not the only way Tesla adjusts price, we just came out of last quarter that saw temporary $3,750 and then $7,500 discounts. I don't think it's the last we'll see of those discounts either.

But yeah Tesla adjusts actual MSRP far more frequently as well. It's good for people on the way up, but it's not good on the way down.

You're correct that they did some discounts in order to ensure said discount applied only to deliveries within a certain timespan. With the tax credit being based on MSRP that may change their behavior a bit.

 

[Mike7564]

That's not the only way Tesla adjusts price, we just came out of last quarter that saw temporary $3,750 and then $7,500 discounts. I don't think it's the last we'll see of those discounts either.

But yeah Tesla adjusts actual MSRP far more frequently as well. It's good for people on the way up, but it's not good on the way down.

Mark my words. If TSLA gets only a partial credit, you’ll see $3750 reduction in price end of Q1.

 

[slvervper99]

I took delivery on December 3 when technically my EDD was Dec 15. I suppose I could've told my SA that I will keep my 12/15 delivery if I had known that at 12/15 they were going to give $7500 credit and $1000 worth of free supercharging. But I didn't and I was waiting for so long, I just wanted the car. I'm sure when news of this broke the people who switch to the MYP and the people who took deliveries in October or November were not happy about it, but they got over it (I think), and now this. Not only does the wound got salted for those who took delivery in mid-last year, but I'm sure it's certainly more painful for people who took delivery after December 31 (no more credits or supercharging) and right before the price cuts. These the people that feel the most cheated. Anyway, we all know the assumption of any new car that leaves the lot drops by 20% anyway. Isn't that the old adage of buying a new car.

 

[starise]

New here. My opinion is what it is and the value of it may change with time

A new group of buyers is now being exposed to Tesla and I am one of them. I ordered an MY LR basic white, black interior. Like has been said, there is a time and a season for everything. A time to buy, a time to sell and a time to wait it out. A time to lick old wounds and move on. I am truly sorry some feel they made a huge mistake. I think Tesla makes a wonderful car and apparently back in 2022 we were none the wiser.

I am one of those types who will research a subject literally to death. Sometimes it looks like I am unsure, when in reality I am only acting on updated info. There really are different economies across the US. I live in a much different situation here in PA. compared to the economic and business environment in California. Many things assumed over there are only ramping up over here. EV's being one of them with a very low percentage of adoption so far. Yes I see them and they are becoming more of a thing, but not the kind of 'thing' they are on the WC for a number of reasons.

To me Tesla business moves look to be multifaceted both to solve a problem in having excess inventory AND make a move to grab the biggest piece of the market they can grab. I would think having larger market share looks like a very good move to share holders. Don't think for one minute if any one of the other auto makers had an advantage, they wouldn't use it over their competition. In Tesla's case the advantage is the ability to out produce the competition, coupled with a formidable charging network AND not having an ICE ball and chain to split their energies. These are all blows to the opponent in the ring, but the TKO comes in when they also lower prices with the risk that they loose a small percentage of customers who just payed more up against a MUCH larger base of customers who can now get into a Tesla.

Share holders should not be crying here because Tesla is playing the long game which is really the successful game. While profit margins are lowered, droves of new customers are gained. Over time this will have a snowball effect IMHO in favor of Tesla.

If you didn't like Tesla or want to go somewhere else, I guess you will need a blindfold to ignore what you percieve to be the ugly kid on the block because he isn't going away and much of the promised ramp up in EVs by other companies are at least partially smoke and mirrors or marketing to narrow market niches.
The competition isn't serious competition if Elon gains the masses in lower income areas of the US, like mine compared to CA. due to better affordability of these cars.

 

[Depwraith]

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).

It depreciated 23% in one day...it will then depreciate at least another 10-15% more for driving it off the lot like you mention this year. 35% depreciation for a one year old car...show me another brand that does that.

 

[Ray_R]

While at the mall today, I stopped by our local Tesla sales store. It was around 11am on a Monday, and the place was really busy. There was one line of people waiting to sign up for a test drive, and another line of people waiting for a sales associate to help place an order. With that much activity going on, I can’t imagine Tesla lowering the price of their cars further anytime soon.

 

[Walch1102]

I personally think over half the people who say they won’t buy again will just be enticed by the next Tesla innovation (assuming it’s big enough) and forget their so-called principles. Btw, principles should be rules based, not emotion based. It makes no sense to call it a principle to not buy from a manufacturer again just because you bought high.

 

[pitiso]

It depreciated 23% in one day...it will then depreciate at least another 10-15% more for driving it off the lot like you mention this year. 35% depreciation for a one year old car...show me another brand that does that.

BMW. Mercedes. Audi.

 

[slvervper99]

BMW. Mercedes. Audi.

Don’t forget Maserati that depreciates 50% or more only after 3 years. A physician I work with bought a Quattroporte, paid $110k for it, after 2 years he was trying to trade it in for a Ferrari, the dealer was going to give him a trade in price of 60-65k, couldn’t remember since it was about 10 years ago. But looking at that, that’s a 40% price reduction and only after 2 years.