GreenHokie
Member
While you and I may share this same opinion, I don’t think many mainstream buyers feel this way…
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I don't see them dropping it unless demand crashes. If they drop MYP below $55K then MYLR needs to drop further or there would only be a $1500 difference. Well they just raised MYLR by $500 and as I've said I predict that will go up another $500 very soon.
Even if MYP drops to just below $55K it would have to drop even further to allow any options on it. Basically needs to get down to $52,999 to allow a color and white seats or even further to allow Black or Red with white seats.
Maybe someday but I doubt it will happen in 2023. No reason for Tesla to give up the MYP margins as MYP can just sell to those that don't care/don't qualify for tax credit. People needing the credit can stick to the 6 limited configs of LR that still qualify. Ballers can buy MYP or Red LR
I also see MYP as a great bargin compared to the competition at its current price. Even a bit higher.
Even if MYP drops to just below $55K it would have to drop even further to allow any options on it. Basically needs to get down to $52,999 to allow a color and white seats or even further to allow Black or Red with white seats.
Maybe someday but I doubt it will happen in 2023. No reason for Tesla to give up the MYP margins as MYP can just sell to those that don't care/don't qualify for tax credit. People needing the credit can stick to the 6 limited configs of LR that still qualify. Ballers can buy MYP or Red LR
I also see MYP as a great bargin compared to the competition at its current price. Even a bit higher.
GreenHokie
Member
Cheers!
Don’t tell Elon, but I was able/ready to buy the MYP back when it was priced at $70K and zero federal EV credit. I’m really in no hurry and can move on a purchase at any whim. So, now that the MYP has dropped to $57K (and with an additional price reduction likely before the end of this year or possibly sooner), I figure I have absolutely nothing to lose (and everything to gain) by waiting. Fun times!!!
How you properly segment the customer base and lower prices without major existing customer blow back. Also, note that they're doing something for Jan 1 and onward customers vs nothing.
The LR still isn't as cheap as it was in February of 21. At that time the P was $10,000 more.
I don't see how the P costs them that much more to build than the LR. They could drop the price but then they would also need to drop the price of LR.
Tesla has been removing a lot of features. USS, Radar, downgraded P rear brakes. With the economic slow down and high interest rates we could see more deflation.
Then again I never would have predicted they would drop prices by 20% like they did. That was a BOLD move....some may even say desperate. It worked on demand but really upset a lot of current owners in the process.
I don't see how the P costs them that much more to build than the LR. They could drop the price but then they would also need to drop the price of LR.
Tesla has been removing a lot of features. USS, Radar, downgraded P rear brakes. With the economic slow down and high interest rates we could see more deflation.
Then again I never would have predicted they would drop prices by 20% like they did. That was a BOLD move....some may even say desperate. It worked on demand but really upset a lot of current owners in the process.
Maybe June 2023 pricing will be :
Model Y Performance : Drop by $3K to $54K to quality for EV tax credit with at least 3 exterior colors. Using 2170 packs.
Model Y LR dual-motor : Drop by $3K to $50K, discontinue version with 2170 packs. Instead built with new version of 4680 being installed at Austin right now, as confirmed on the Q4 Tesla call last week, 1 line out of 4 lines in Austin is in production now. Likely with silicon in anode, enabling higher range.
Model Y SR single-motor : Re-introduce to North America at $40K. This config is already widely sold in Europe and Asia. Tesla already sold this same car at same $40K price in the US in 2021.
Model Y Performance : Drop by $3K to $54K to quality for EV tax credit with at least 3 exterior colors. Using 2170 packs.
Model Y LR dual-motor : Drop by $3K to $50K, discontinue version with 2170 packs. Instead built with new version of 4680 being installed at Austin right now, as confirmed on the Q4 Tesla call last week, 1 line out of 4 lines in Austin is in production now. Likely with silicon in anode, enabling higher range.
Model Y SR single-motor : Re-introduce to North America at $40K. This config is already widely sold in Europe and Asia. Tesla already sold this same car at same $40K price in the US in 2021.
GreenHokie
Member
Certainly a plausible scenario.
I think the fact that Tesla at one point priced a MY SR at $40K, should leave no doubt in anyone’s mind that prices on the remaining trims will continue to drop. Will that happen in June or some time later this year? Who knows. But, for sure, they (price drops) are coming.
In my opinion, the other contributing factor & motivation for Tesla wanting/needing to increase sales even more so than what they had previously budgeted/forecasted is… Elon’s very poor decision to purchase Twitter. I’m sure that $44 billion expense (or whatever ended up being the final purchase price) dealt a major blow to Tesla’s overall cashflow and profitability. How does one offset the negative impact of that $44 billion expense? Simple… by selling more of their most profitable product… vehicles.
And, how will Tesla attract more buyers to help maintain a high demand/order level? By continuing to drop prices.
I’m sure Elon or whomever becomes the CEO of Twitter will eventually figure things out and make that platform a very profitable business for Tesla. However, they are not there yet and are likely reeling and bleeding some coin from that purchase.
Yes, demand for Tesla vehicles have surged lately in response to their recent huge price drops. However, Tesla knows that demand will soften. This is just an inevitable product/business cycle. So, I think continuing price reductions will become an important strategy for Tesla to stay ahead of the game and in their quest to keep demand/orders at acceptably high levels.
Huh??? No expense to Tesla, no Tesla assets or funds were used to purchase Twitter.
I personally would make a bet that the MYP will go up a little as its already so close to the MYLR price and only the incentive is saving it. When the tax incentive is removed, I can see the LR staying the same price but the MYP could go up a few thousand. Historically, its been around 6-8k more than the MYLR.
GreenHokie
Member
Huh, back at you. How can you even say the Twitter purchase was not an expense? Bro, any purchase is an expense. Don’t matter if I have a trillion dollars in my bank account, and I did not need to use any assets or funds from one of my companies to make a particular purchase. If I spend $44 billion to acquire/purchase something, it is still an expense. Hope this makes sense…
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So confused by this. Do you think Tesla bought Twitter????
Elon sold shares of Tesla stock, which probably hurt Tesla's price shares. However, Tesla and Elon are not the same thing. One is a company and the other is an individual.
For all of you "TeSlA cAnOtT oFfEr AnYtHiNg FoR rEcEnT bUyErS!!!!!!!!!!!!!!!!!!!!!!!!!! tHaT iS iNsAnE tO eVeN aSk FoR!!!!!!!!!!!!!!!! No CoMpAnY wOuLd EvEr Do ThAt On A cAr PuRcHaSe!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!" club members, I present you Ford. Regarding the recent price drop on Mach E (which is junk btw):
From Ford:
From Ford:
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I am accepting apologies both publicly, here, and also in my DM from every single person who has been flailing their arms wildly and screeching here about how it's not possible for a company to do anything for recent buyers after a price drop on a car purchase.
They'll probably offer free oil changes for the life of the car.
GreenHokie
Member
You are correct. Elon and Tesla are different. I sort of (& mistakenly) used the two interchangeably in my previous post. I think most folks associate the two as the same, because the actions of one usually affects the other.
What I should have said was, Elon’s purchase of Twitter had an impact on Tesla (most feel it was/is a negative impact).
Sorry for the confusion.
Don't hold your breath, since nobody said it wasn't possible. Also, what exactly is the "private offer?" Are you now going to buy a Ford product because of this gesture?
Oh, now it's not that it wasn't possible. LOL. What, exactly, did they say then? Either they said they couldn't, or they shouldn't. Which is it? If they said Tesla shouldn't, then they're a hypocrite (at minimum). Have they ever returned something? Have they ever price matched something? Exactly. I am sure they have. So they take advantage of it when it benefits them personally, but then advocate for others not to have that opportunity when the difference is $13,000 (or $20,500) instead of $25 on their Walmart return. Yikes. Scary.
A private offer is something of value to try and make up for a substantial price drop after a recent purchase.
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