Discussion: Model 3 Price reductions - Jan / April / Oct 2023 and all other pricing discussions

[mpgxsvcd]

Tesla has reduced Model Y and Model 3 prices DRASTICALLY. Now several models will qualify for the $7,500 tax incentive until at least March.

Here is a picture of the price reductions.

It is important to note which cars will now qualify for the tax credits and which won’t.

Model 3 RWD qualifies for the Tax credit until March. The effective price for a no option Model 3 RWD should now be about $36,500 after the tax credit.

Model 3 LR should qualify for the tax credit. However, you can’t configure it on the site. You will have to find one already built but not sold to get one.

Model 3 Performance is under the $55k cap now. However, it is not listed on the government website as being eligible. The Tesla website explicitly says it qualifies right now but this may be incorrect. You might find that when you file your tax return in 2024 they deny it because it is not listed as being eligible with the government.

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service

You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

www.irs.gov

Model Y LR now qualifies. The effective price for it is now about $45,490 after tax credits.

Resell values have been OBLITERATED! These cars are essentially worthless on the resell market now.

This really is a monumental shift in pricing for Tesla. They were already dominating the market and this can only strengthen their lead.

None of the Model Y Performance cars will qualify for the tax credits but that price is now less than I paid for my 2022 Model 3 Performance($59k).

================================================

(moderator note: In model 3 subforum this will be THE thread on this topic. All discussion on this price cut in this subforum will be moved in to this thread, so there will not be multiples of this topic in this subforum)

 

[alexgr]

"OMG! It is so unfair!
"
... IRS and Pete Buttajudge

Edit: this spells the end to the EV competition. Tesla to 99% of the market. And actually, it is sad.

 

[alexgr]

Resell values have been OBLITERATED! These cars are essentially worthless on the resell market now.

Lower, yes, but not worthless. In a month or so, the waiting time will extend to the end of 2023 if now beyond. This will increase the used vehicle price as they are now eligible for $4k tax credit if I am not mistaken.

 

[3sr+buyer]

Looking at new inventory, it looks like the Model 3 Long Range with lowest price choices (18" wheels, black interior, white or dark gray exterior, no EAP or FSD) is now $49,990. Inventory of such is non-zero, but appears to be much less numerous than Model 3 RWD.

 

[texas_star_TM3]

Lower, yes, but not worthless. In a month or so, the waiting time will extend to the end of 2023 if now beyond. This will increase the used vehicle price as they are now eligible for $4k tax credit if I am not mistaken.

lol. Wishful thinking. Tesla is facing demand softness … Hence the 20% cut for the Y

 

[Daniel1917]

Going to take delivery next week, already paid down payment. What are my chances of getting a check for the price difference? Or am I out of luck haha

 

[alexgr]

lol. Wishful thinking. Tesla is facing demand softness … Hence the 20% cut for the Y

Tesla was always able to control the price to match demand to maximize profit. At nearly 30% margin, Tesla had a LOT of room to lower the price IF NEEDED. Now, I believe, Tesla decided to size the opportunity to totally overwhelm the car market in the US. Considering the interest to EVs is at or above 50% of potential new car buyers, most of them will click the Tesla order button within a few days. No other car maker is able to respond to Tesla without either going belly up.

Now watch for Tesla expedited introduction of Cybertruck and new modifications of Model Y and 3 to ensure taking over nearly all market segments.

 

[mgs333]

This is great news for those who quality for tax credits!

 

[mpgxsvcd]

Lower, yes, but not worthless. In a month or so, the waiting time will extend to the end of 2023 if now beyond. This will increase the used vehicle price as they are now eligible for $4k tax credit if I am not mistaken.

No, the used tax credit cap is $25k. Yes, I was exaggerating by saying they are “worthless” but honestly if you get offered $35k for a 2022 Model 3 Performance or a Model Y then it is essentially worthless. No one would sell that vehicle at such a huge loss.

 

[alexgr]

In other words, Tesla shares to $500! Especially, if Tesla starts selling CT by fall at ~$50k starting price. It seems, Biden administration has just handled the entire car market (not just EVs) to Tesla without really thinking about it.

 

[mpgxsvcd]

This is great news for those who quality for tax credits!

Leases don’t have the restrictions that purchases have for the tax credits. Plus leases can get the $7,500 up front. I don’t know if Tesla is passing the tax credit to the consumer for leases but if they are then that suddenly makes the leases look viable even if the other terms aren’t good.

 

[brkaus]

Going to take delivery next week, already paid down payment. What are my chances of getting a check for the price difference? Or am I out of luck haha

They will likely adjust your purchase price, otherwise you can walk and get your money back (less the order fee).

 

[mpgxsvcd]

In other words, Tesla shares to $500! Especially, if Tesla starts selling CT by fall at ~$50k starting price. It seems, Biden administration has just handled the entire car market (not just EVs) to Tesla without really thinking about it.

Cyber Truck can be priced at less than $80k and get the tax credit. All pickup trucks will get the $80k cap.

 

[alexgr]

No, the used tax credit cap is $25k. Yes, I was exaggerating by saying they are “worthless” but honestly if you get offered $35k for a 2022 Model 3 Performance or a Model Y then it is essentially worthless. No one would sell that vehicle at such a huge loss.

Yes, I agree, the market will take time to adjust. Many people who had selling their newer M3s and MYs soon are basically screwed. Some higher mileage 18 M3 may very well be about $25k anyway.

 

[mpgxsvcd]

Hyundai/Kia will be essentially pushed out of the EV market now. All of their EVs just suddenly got REALLY expensive when compared to the competition from Tesla. Hyundai/Kia lost the tax credits and Tesla gained them all while lowering the Tesla MSRPs.

 

[alexgr]

They will likely adjust your purchase price, otherwise you can walk and get your money back (less the order fee).

Depends on what he meant by "down payment". It might be another story to extract cash paid directly to Tesla after refusing the purchase altogether.

 

[alexgr]

Hyundai/Kia will be essentially pushed out of the EV market now. All of their EVs just suddenly got REALLY expensive when compared to the competition from Tesla. Hyundai/Kia lost the tax credits and Tesla gained them all while lowering the Tesla MSRPs.

EXACTLY! And not just them. But Ford, VW, and perhaps even GM (as their volumes are tiny). We might be at a revolutionary turn of the car market.

 

[alexgr]

Cyber Truck can be priced at less than $80k and get the tax credit. All pickup trucks will get the $80k cap.

Right, but if Tesla positions nearly all its CT trims under $80k, it's GameOver for Ford and Rivian (and GM and everyone else).

 

[mpgxsvcd]

Lower, yes, but not worthless. In a month or so, the waiting time will extend to the end of 2023 if now beyond. This will increase the used vehicle price as they are now eligible for $4k tax credit if I am not mistaken.

Here is Vroom’s offer for my 2022 Model 3 Performance with 13k miles in excellent condition. They offered me $66k for it 6 months ago.

 

[brkaus]

Here is Vroom’s offer for my 2022 Model 3 Performance with 13k miles in excellent condition. They offered me $66k for it 6 months ago.

View attachment 895118

Yea, but the whole used market was stupid crazy 6 months ago.