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

[Mike7564]

1. I did lose money! When I bought my MYLR , I exchanged the same money for equivalent value. I did not underpay or use counterfeit money, but after the transaction, Tesla said that the product was not worth the money, so of course the extra money must be returned to me.
2. Car valuse $70k, milk or gas just cost dollars, you should be able to tell the difference between killing someone and yelling someone.
3. Commodity trading is an exchange of equivalent value. Since the previous transaction was reasonable, there is no reason to ask the prior customers to pay the extra when the price was increasing. now price cut just after I bought my MYLR in December, the value of my car has already dropped which shows that the previous transaction was unfair.

Hmmm. Few issues with the logic here.
- you exchanged money for a commodity at a perceived reasonable value. Presumably you felt it was worth that price when you bought it, knowing there are unknown possibilities in the future. There is absolutely nothing inherent about the car which means it needs to be worth $70k. And Tesla didn’t promise that the price they were selling it for was some magical “inherent value”. Arguably given where the market value of a similarly featured EV sits currently as well as the fact that the price was over $10k less just a year earlier, the inflationary component of the price should be apparent.
- it seems you would also object to the fact that a new vehicle drops dramatically in value the moment it rolls off the dealer lot. Is the “value” truly thousands less with 5 miles on the car on the drive home? It’s only because of perceived/market price is less for a now “used car”
- based on your logic, why shouldn’t people who bought in Nov 22 demand Tesla sell them the car at the price from Jan 2022? Wasn’t that the “inherent value”?

Sorry it doesn’t feel good but you made a free market decision and purchased a car at a value you felt was reasonable at the time.

Technically you haven’t lost any more money than $70k unless you want to sell it and cash out, regardless of the current price.

 

[c00sebookpro]

3.65? Is that the best they can do nowadays? I got my ‘21 MY 2 years ago with .9%

I got my M3LR for 1.25% in Sept 2021 for 72 months. Check out some of the rates folks are getting on the credit union thread now.

 

[stopcrazypp]

Hmmm. Few issues with the logic here.
- you exchanged money for a commodity at a perceived reasonable value. Presumably you felt it was worth that price when you bought it, knowing there are unknown possibilities in the future. There is absolutely nothing inherent about the car which means it needs to be worth $70k. And Tesla didn’t promise that the price they were selling it for was some magical “inherent value”. Arguably given where the market value of a similarly featured EV sits currently as well as the fact that the price was over $10k less just a year earlier, the inflationary component of the price should be apparent.
- it seems you would also object to the fact that a new vehicle drops dramatically in value the moment it rolls off the dealer lot. Is the “value” truly thousands less with 5 miles on the car on the drive home? It’s only because of perceived/market price is less for a now “used car”
- based on your logic, why shouldn’t people who bought in Nov 22 demand Tesla sell them the car at the price from Jan 2022? Wasn’t that the “inherent value”?

Sorry it doesn’t feel good but you made a free market decision and purchased a car at a value you felt was reasonable at the time.

Technically you haven’t lost any more money than $70k unless you want to sell it and cash out, regardless of the current price.

Right, people should make purchasing decisions based on if it makes sense at the time of purchase. If you did at the time, then you made the best decision you did at the time, no need to fret over it. No one has a crystal ball. Things might have been different if the IRS didn't put that $55k limit, but they did, and here we are today.

 

[AndrewZ]

I’m curious how many people who bought in the last year at the higher price are conveniently forgetting the over inflated trade-in/sale price they got of the vehicle their Y replaced. While I’m sure it doesn’t amount to $13k it should soften the blow…

Wow this is an extremely good point I haven’t seen mentioned anywhere else and hadn't considered at all, kudos to you

 

[Alan_F]

Wow this is an extremely good point I haven’t seen mentioned anywhere else and hadn't considered at all, kudos to you

Someone actually said this a few pages back:

I sold my 22 Y to my brother for 60k and bought a 3 performance 2 weeks ago. I feel like I was just scammed by Tesla.

Lets see. Two weeks ago puts the new purchase around the time of the $7,500 price cut, so not the highest recent pricing. Maybe the OP took delivery after 12/31/22 and missed the rebate. Either way, getting $60K for a 22 Y seems like good timing. if it sold for $60K a few weeks ago, then it would be worth no more that $45-50K today. Seems like the brother is the one who got screwed there.

I get the emotional reaction to missing out on a better deal, and the economic impact of possibly going upside-down on a loan, but when you really think about what some people are saying, it makes no sense. The car didn't become less premium or less luxurious when the price went down. Would the car in your driveway/garage be any different if they were still selling for the same price?

As others have pointed out, everyone's insurance should have just gotten cheaper, maybe even with GAP coverage added (if you need it). I plan to call my agent this week to ask for a new quote.

And the idea that people won't buy a Tesla again because of this... yeah, that makes sense. "I'm so pissed off that Tesla will sell me my next car for $15K less than an equivalent Ford/Kia//VW, that I'm going to spend the extra $15K just to teach Tesla a lesson!" Maybe if you ask nicely the dealer will add another $10K ADM to the price. That will really stick it to Tesla!

 

[Occhis]

Ever buy stock and the next week it’s worth less? So you bought a house in 2007 and tried to sell it in 2009 - same scenario, different assets.

 

[xcyber]

Where do you see that price change for YOUR order, not the price configuration page?

Comparing the old and new invoices side by side, a bit over 12K difference

 

[tonyz1]

I get the emotional reaction to missing out on a better deal, and the economic impact of possibly going upside-down on a loan, but when you really think about what some people are saying, it makes no sense. The car didn't become less premium or less luxurious when the price went down. Would the car in your driveway/garage be any different if they were still selling for the same price?

The car did become less premium overnight. By treating the car like a junk bond or penny stock and letting it bounce, the value of the car and the Tesla brand is lower. There's a reason why Toyota created Lexus for market segmentation reasons. Luxury manufacturers take the demand hit or shift production to their mass market brands and don't damage the brand.

Would I have chosen a different car if I could have gotten it at the lower price point? Probably not since I wanted an EV. But after this price drop, if I were debating between a Porsche Macan or a Tesla Model Y, the brand value of Porsche is much higher. Yes depreciation and maintenance cost is debatable etc, but if you're planning on driving the car for a long time, the brand value matters more than resale value.

As for your last point of never buying Tesla, I think that's a very reasonable and rational decision after getting screwed by them. It's rewarding bad behavior towards their customers and if Tesla can do it, every manufacturer will do this. This will lead to enormous price volatility in the auto space and even worse customer satisfaction (see airlines as an example.

Also, if Tesla becomes the low price leader, again, then the brand is heavily devalued and there's no value in choosing a Tesla. I'll take my money to BMW, Lexus, Audi, etc. There's some naiveness here that just by lowering the price, the company will dominate. As it currently stands, the number of available Model Ys for immediate delivery just above the tax credit threshold has increased from 50 to 78 in my area. Cars are very much character and brand driven products, no one wants the same white Tesla model Y that everyone else has if they can afford it.

 

[tanl]

Hmmm. Few issues with the logic here.
- you exchanged money for a commodity at a perceived reasonable value. Presumably you felt it was worth that price when you bought it, knowing there are unknown possibilities in the future. There is absolutely nothing inherent about the car which means it needs to be worth $70k. And Tesla didn’t promise that the price they were selling it for was some magical “inherent value”. Arguably given where the market value of a similarly featured EV sits currently as well as the fact that the price was over $10k less just a year earlier, the inflationary component of the price should be apparent.
- it seems you would also object to the fact that a new vehicle drops dramatically in value the moment it rolls off the dealer lot. Is the “value” truly thousands less with 5 miles on the car on the drive home? It’s only because of perceived/market price is less for a now “used car”
- based on your logic, why shouldn’t people who bought in Nov 22 demand Tesla sell them the car at the price from Jan 2022? Wasn’t that the “inherent value”?

Sorry it doesn’t feel good but you made a free market decision and purchased a car at a value you felt was reasonable at the time.

Technically you haven’t lost any more money than $70k unless you want to sell it and cash out, regardless of the current price.

I am a customer of Tesla, and so are you. I have never heard of other companies treating their customers like this. Today, Tesla abandoned me. Do you think it will be friendly to you?

 

[stopcrazypp]

The car did become less premium overnight. By treating the car like a junk bond or penny stock and letting it bounce, the value of the car and the Tesla brand is lower. There's a reason why Toyota created Lexus for market segmentation reasons. Luxury manufacturers take the demand hit or shift production to their mass market brands and don't damage the brand.

Would I have chosen a different car if I could have gotten it at the lower price point? Probably not since I wanted an EV. But after this price drop, if I were debating between a Porsche Macan or a Tesla Model Y, the brand value of Porsche is much higher. Yes depreciation and maintenance cost is debatable etc, but if you're planning on driving the car for a long time, the brand value matters more than resale value.

As for your last point of never buying Tesla, I think that's a very reasonable and rational decision after getting screwed by them. It's rewarding bad behavior towards their customers and if Tesla can do it, every manufacturer will do this. This will lead to enormous price volatility in the auto space and even worse customer satisfaction (see airlines as an example.

Also, if Tesla becomes the low price leader, again, then the brand is heavily devalued and there's no value in choosing a Tesla. I'll take my money to BMW, Lexus, Audi, etc. There's some naiveness here that just by lowering the price, the company will dominate. As it currently stands, the number of available Model Ys for immediate delivery just above the tax credit threshold has increased from 50 to 78 in my area. Cars are very much character and brand driven products, no one wants the same white Tesla model Y that everyone else has if they can afford it.

Sorry, not buying this argument. Model Y LR used to be $48,990 at its lowest point ($52,900 at launch), all this price drop does is reset it closer to that point after all the price increases through out the last few years. That doesn't make it any less premium than when it originally launched.

 

[pdx_m3s]

Premium features and a premium user experience are what make a car “premium.” Price is downstream from this fact.

 

[tonyz1]

Sorry, not buying this argument. Model Y LR used to be $48,990 at its lowest point ($52,900 at launch), all this price drop does is reset it closer to that point after all the price increases through out the last few years. That doesn't make it any less premium than when it originally launched.

Doesn’t matter what the launch price was, if Tesla reset the price to that, it’s a much less valuable company and brand. What matters is it’s less valuable today than it was before Jan 12.

You don’t have to buy my argument, just look at available teslas in your area. There’s a glut of $56k+ models in my area, far more than in December. Tesla succeeded in moving tax credit units but overall demand is still bad while pissing offer a lot of recent buyers - that’s destroying long term value.

 

[Hiline]

If Tesla became less premium when they cut prices, did they become more premium when they raised prices?

 

[RJAZ]

It looks like the price of the MY just dropped $13k. I was upset when I didn't get one before year end for the 7.5k, but that looks like it might be a mixed blessing.

Yes I placed my order this week. Looking forward to the upgrade although not the lack of USS. I need the space more than that at the moment so I guess we'll see! This who ordered with USS, I'm wondering if the lab of safety features is worth the $13k discount to you? Considering 2023 MY no longer has USS - just vision - no parking distance.

 

[tonyz1]

If Tesla became less premium when they cut prices, did they become more premium when they raised prices?

Actually yes - there’s a lot of studies and research that proves this out.

What companies do though to justify their higher price points is treat their customers well and have good customer service , which Tesla proved it doesn’t seem to know how to do in this price cuts hence why not premium.

 

[RJAZ]

Yes I placed my order this week. Looking forward to the upgrade although not the lack of USS. I need the space more than that at the moment so I guess we'll see! This who ordered with USS, I'm wondering if the lab of safety features is worth the $13k discount to you? Considering 2023 MY no longer has USS - just vision - no parking distance.

Auto correct. You get what I'm saying. "THOSE who ordered with USS, I'm wondering if the LACK of safety features..."

 

[tonyz1]

Premium features and a premium user experience are what make a car “premium.” Price is downstream from this fact.

Yes except the customer experience is absolutely terrible based on how they treated buyers over the last couple of months and in general.

 

[Bibliophile]

It would be nice if Tesla would offer some sort of coupon or discount for recent purchasers that just missed the deal by a week or so, for either merchandise or software upgrades, but I'm not counting on it. I love my new MYLR...

 

[snpiperpilot]

Yeap destination is not included in MSRP, nor are software add-ons such as FSD.

It’s listed on the sales agreement as is enhanced autopilot.

 

[c00sebookpro]

It would be nice if Tesla would offer some sort of coupon or discount for recent purchasers that just missed the deal by a week or so, for either merchandise or software upgrades, but I'm not counting on it. I love my new MYLR...

I'd love to see 50% off or higher for EAP, especially since it won't work until they tweak the software anyway.