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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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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.
I like your plan. Anyone watching Tesla and listening to Elon since 2017 knows the goal is mass production and lower and lower prices. The Model Y is NOT a luxury vehicle and never was, it's a premium tech vehicle. Prices will go lower into the $40K range now, possibly with single motor RWD like in Europe and China already have. If you are looking for luxury, then please look elsewhere and not at a Tesla.
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?
No, Tesla will not be friendly to me by maintaining the value of my current Tesla that I already bought. They're not interested in that, they just want to drive prices down lower and lower to get gasoline cars off the road. Next stop $39K MSRP for Model 3 and $49K MSRP for Model Y.
Yeah they moved a lot of volume in 2022 but every indication is that demand has collapsed for this car based on the data and their reactions to it.
I guess I agree that demand has collapsed when selling a $53K car for $66K. That problem is already solved.
 
Pretty simple: Value went down $13,000, replacing it went down $20,500 until mid-March, $16,750 after.

Yes, demand was in chaos with the insane implementation of the IRA. Orders were cancelled or not made based on expectation of tax credits after 12/31. First response was to credit $3,750 for December purchases. Then the Treasury Department said credits would be an unlimited $7,500 until March and Tesla increased the credit to $7,500. The final blow was then excluding the best-selling Model Y from any credits. If you followed Musks statements about recession and margins, it was inevitable that prices would be lowered to qualify. It had already happened in China with their covid problem and collapsing economy,
 
I like your plan. Anyone watching Tesla and listening to Elon since 2017 knows the goal is mass production and lower and lower prices. The Model Y is NOT a luxury vehicle and never was, it's a premium tech vehicle. Prices will go lower into the $40K range now, possibly with single motor RWD like in Europe and China already have. If you are looking for luxury, then please look elsewhere and not at a Tesla.

No, Tesla will not be friendly to me by maintaining the value of my current Tesla that I already bought. They're not interested in that, they just want to drive prices down lower and lower to get gasoline cars off the road. Next stop $39K MSRP for Model 3 and $49K MSRP for Model Y.

I guess I agree that demand has collapsed when selling a $53K car for $66K. That problem is already solved.
Semantics…Premium tech vehicle and luxury vehicles are the same. Most luxury vehicles have quite a bit of good tech in it too.

As for premium tech, If apple made a phone with the same issues as the Tesla, the bad pricing strategy, and bad customer service, it would not be considered a premium tech product. Maybe Tesla is really the dell computers of cars then?
 
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Semantics…Premium tech vehicle and luxury vehicles are the same. Most luxury vehicles have quite a bit of good tech in it too.

No. A luxury vehicle has excellent fit and finish. The outside world disappears when you are inside it because of sound deadening features. . It offers an upgraded experience to all the passengers (custom heat settings under the control of each passenger, for example), it offers private entertainment to rear passengers, it offers custom interiors with premium materials, not 'vegan leather' aka pleather or vinyl.

We bought a computer that drives. Not a vehicle that uses a computer to offer more safety and comfort.
 
Seems to me that all car dealers adjust prices based on supply and demand, but the legacy ones don’t give every customer the same price reduction. The sticker price stays the same, but they adjust the selling price to the customer on an individual basis depending on the bargaining skills of the prospective buyer across the desk. Absolutely no transparency. So everyone gets a different price on the same car.

In Tesla’s business model the reduced price is for EVERYONE. Everyone gets the same price on the same car. This appears to be a much more fair and equitable way to treat customers.

So the dealer can either be out in the open and give everyone the same price, or be opaque and make every buyer pay a different price.

In both cases there is a value reduction of all previously sold cars, except for the unfortunate ones that didn’t bargain hard enough with the BMW dealer and got screwed yet again. They paid more than they should have AND the value of their car also went down. Does that seem fair?

As I mentioned before, all assets (stocks, houses and, yes, cars) are subject to value appreciation as well as depreciation. If you’re not willing to accept that fact and assume that risk then maybe you should just lease. Then you have a contract that guarantees your residual value at the end of the period. Like it or not, it’s the way capitalism works.
 
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Pretty simple: Value went down $13,000, replacing it went down $20,500 until mid-March, $16,750 after.

Yes, demand was in chaos with the insane implementation of the IRA. Orders were cancelled or not made based on expectation of tax credits after 12/31. First response was to credit $3,750 for December purchases. Then the Treasury Department said credits would be an unlimited $7,500 until March and Tesla increased the credit to $7,500. The final blow was then excluding the best-selling Model Y from any credits. If you followed Musks statements about recession and margins, it was inevitable that prices would be lowered to qualify. It had already happened in China with their covid problem and collapsing economy,
Good summary of the facts leading up to January 12th.
 
Tesla is going to continue with the see-saw price changes I believe. Judging from its pricing history because it follows the basic market principle of supply and demand. I’m no means a Tesla expert nor am I a shrewd market analyst. Just a consumer looking at what I see. I plan to keep my Model Y for a few years, now it’s true that I lost $10k in value literally overnight since I ordered (at $62,990) mine right before the price hike of April that turned the Model Y price to $65,900. But in reality, compare it to current prices…I overpaid mine by $13,750. $10k price difference plus the $7500 credit minus the $3750 credit Tesla gave for December delivery. Do I feel cheated like everyone else, of course; could’ve used half of it for the EAP option. Looking at the bright side though and again just my opinion…Tesla still have one of the better resale value meaning, in a few years; my cars value will plateau to a price I’m happy with when I trade my Y in for the Cybertruck 😁😁
 
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Pretty bummed Tesla did this but on the flip side it shows the capability they have to adapt to changes in supply and demand. I doubt other legacy car makers are able to just cut their prices by 20% overnight. I do think the Tesla models will increase in price over time and by extension the resale values will follow. I did trade in a a used vehicle to purchase my model y and got a good deal on it so I'm telling myself I netted out even after the price drop considering that the used car market was also overvalued.
 
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Those who think a car is luxury or premium because it has a BMW or Mercedes badge on it have clearly not experienced a 1-series of A-Class…

My view is that the model Y is a premium vehicle (not luxury) and only gets that rating due to the advanced tech as opposed to materials and fit/finish etc. it is now and should always have been a mid 50k vehicle. I went from a $70k Land Rover product to the Y which was a $20k price drop and that felt right as the materials, build quality, ride snd NVH were a big step down. However for someone spending more than usual on their Toyota crossover, their perception may be different as those vehicles are forgettable to drive with old tech do the Tesla feels like a step up. But it had no business playing in the mid $60k range.
 
Those who think a car is luxury or premium because it has a BMW or Mercedes badge on it have clearly not experienced a 1-series of A-Class…

My view is that the model Y is a premium vehicle (not luxury) and only gets that rating due to the advanced tech as opposed to materials and fit/finish etc. it is now and should always have been a mid 50k vehicle. I went from a $70k Land Rover product to the Y which was a $20k price drop and that felt right as the materials, build quality, ride snd NVH were a big step down. However for someone spending more than usual on their Toyota crossover, their perception may be different as those vehicles are forgettable to drive with old tech do the Tesla feels like a step up. But it had no business playing in the mid $60k range.
Please take no offense, just inquiring minds. Humor me here….saw that you ordered your Y in June 2021 when the prices were still sub 60k. Based on your post, if the Model Y was in the low-mid 60’s in 2021. Would you have ordered one then not knowing whether the price will keep going up, stay the same or go down?
 
Pretty bummed Tesla did this but on the flip side it shows the capability they have to adapt to changes in supply and demand. I doubt other legacy car makers are able to just cut their prices by 20% overnight. I do think the Tesla models will increase in price over time and by extension the resale values will follow. I did trade in a a used vehicle to purchase my model y and got a good deal on it so I'm telling myself I netted out even after the price drop considering that the used car market was also overvalued.
I appreciate your positivity but not sure resale value will follow. Tesla now has one of the oldest non-refreshed product lines in the EV world. They're puling the one lever they have to move inventory - price to a new more price sensitive customer segment. They will also flood the market with more Tesla Model Ys as they ramp up Austin as well. At some point, they're going to create a new and better Model Y (e.g. 4680 batteries with longer range, radar, more autopilot cameras, new looks, etc...) that could potentially justify a higher price. That will likely also push down the price of the older Tesla Model Y generation like ours.

Think we just got screwed - hope you got yours before Q4 so at least you got some time to enjoy it and USS before they pulled their move. It was a very expensive 30 days of enjoyment for me.
 
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We ordered our car in Sept of 21 when the base price was 53990 and we needed a car since our lease was expiring in 6 months. We finally received the car in April 22 when prices rose to almost 60k for the base model y. Were we happy the price of the car kept rising after we locked in our costs? I don’t think we cared. We plan to enjoy our car for 6-7 more years and whatever the residual resale value will be what it is. We didnt have any issues at delivery and the car is dependable and very cheap to operate. People will have their perspective and that is total fine.
 
Was this posted already around here? Video by Doug DeMuro.


He thinks a lot of the Tesla advantages are mostly gone now outside of the supercharging network. Questions whether we can get Teslas in the $25k range later or sub $20k and thinks prices aren't ever going back up again.