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

[blackT3$!@]

I searched Carvana in the Tampa, FL area and the cheapest USED 2022 Model Y long range AWD is $59,590 with 13k miles. I can build a new 2023 from Tesla for $52,990 before any tax credit delivered Jan-Mar 2023. The used car market for Tesla's just imploded.

 

[eleison]

Elon said he was going to electrify the car segment..... People are now surprised that he's doing just that. If we go by his statements ALONE when he got involved with EVs, if he could give out tesla for free, he would.

We live in the real world, so discounting is the next best thing. Yes, Elon did get mega rich from tesla, but in his earlier interviews it was never about getting rich but replacing ice cars with electric cars. What does this mean for TSLA holders? The tesla car brand (which currently means luxury and not a unitarian)? Who knows?

 

[SageBrush]

I ordered a Model Y this morning, but the value leader is the Model 3 272 mile range variant. That is about $38k pre tax after a full EV tax credit.

 

[mjwojtukiewicz]

(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)

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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.

View attachment 895084

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).

I am going to wait to see if they add this new top secret radar to the cars

 

[SageBrush]

Elon said he was going to electrify the car segment..... People are now surprised that he's doing just that. If we go by his statements ALONE when he got involved with EVs, if he could give out tesla for free, he would.

We live in the real world, so discounting is the next best thing. Yes, Elon did get mega rich from tesla, but in his earlier interviews it was never about getting rich but replacing ice cars with electric cars. What does this mean for TSLA holders? The tesla car brand (which currently means luxury and not a unitarian)? Who knows?

Pretty much. Tesla sets prices based on their 6 month modeling of production and cost of production, and then makes changes based on demand. We don't really have much insight into the weighting of these three variables, but my guess is that a rapid ramp of 4680 production is on the near horizon.

 

[Blacktes24]

I see Tesla is showing this on their page and says certain model 3s now qualify for the rebate? Now the M3P is priced at 53,900 which falls under the 55k cap to get the credit?

I thought the Model 3 hasn't been able to get the rebate for quite some time since it has sold over the limit the feds set? Also It says the tax credit plan will change in march. Between the state rebate IL has now and if you can still get the federal rebate of 7500 I might trade my m3p for a new one. Thoughts?

 

[Apprunner]

I see Tesla is showing this on their page and says certain model 3s now qualify for the rebate? Now the M3P is priced at 53,900 which falls under the 55k cap to get the credit?

I thought the Model 3 hasn't been able to get the rebate for quite some time since it has sold over the limit the feds set? Also It says the tax credit plan will change in march. Between the state rebate IL has now and if you can still get the federal rebate of 7500 I might trade my m3p for a new one. Thoughts?

Its the new IRA. Make sure you understand the income caps and you qualify for the tax credit. I believe its $150k for single or $300k for family in terms of income.

 

[srs5694]

The Inflation Reduction Act, passed a few months ago, has made changes to the EV tax credit. It's lifted the per-manufacturer limits (I think it's removed them entirely, in fact), but it's imposed some complex domestic sourcing requirements, as well as limits on what purchasers qualify, based on their income. As I understand it, the domestic sourcing requirements are so complex that the IRS is imposing very basic tests from now until March; but in March the sourcing requirements will get stricter. If I correctly understand those limits, and Tesla's battery sourcing, the RWD Model 3 may not qualify past March, since (IIUC) its batteries come from China; but the LR battery packs used in the AWD and Performance come from the US, so they may qualify, provided the car's price is low enough and the buyer's income isn't too high. As I say, it's pretty complex. If in doubt, consult both Tesla and a tax preparer who's familiar with the rules.

 

[twister33]

Am I pissed after the price dropped down like 20%? Yes. Do I still love my car? Yes. It is really good for others who have been waiting to have EV. But I feel like who has taken delivery of their cars before Dec22 got screwed really good. Imagine waiting 5-6 months for your car, and once you get the delivery the price drops 15k.
Tesla should/can compensate their loyal customers with free FSD. At least, that can take some steam off of people like us.

 

[likkuid]

But then the FSD buyers would be even more burned.

 

[twister33]

You got a valid point. Maybe give them lifetime supercharging? If they are willing to take risk and do drops like these, I am sure lifetime supercharging for few of those who already purchased FSD won't be a burden on Tesla.

 

[Jeremy3292]

$47k for the cheapest Tesla is still a $700 payment due to interest rates. There are not a lot of people who can afford that payment or have a big down payment to plunk down on a Tesla that doesn’t come standard with floor mats or sensors.

$7500 tax credits that you won’t see until the following year if you are lucky. Yeah sales will remain the same. The Auto industry is about to get slapped.

The cheapest M3 is now $44k with a $7,500 tax credit. The MY LR saw a 20% price cut, now under $53k with a $7,500 tax credit. Coupled with no gas, (virtually) no maintenance costs, etc. when comparing to a similar gas car.

We are still many years away from EV's being mainstream, but these new prices coupled with the tax credit certainly will bring a lot of people to Tesla.

Also don't discount how on the fence people can be when it comes to pricing. Take me for example: I never would've bought an M3 LR if it was $58k when I bought mine in Sept 2021...I got it for $50k which is the new price again now.

The real news here is likely the shaving of $13k off the MY LR plus a $7,500 tax credit which is VERY, VERY SIGNIFICANT for a family type vehicle IMO.

 

[mpgxsvcd]

I see Tesla is showing this on their page and says certain model 3s now qualify for the rebate? Now the M3P is priced at 53,900 which falls under the 55k cap to get the credit?

I thought the Model 3 hasn't been able to get the rebate for quite some time since it has sold over the limit the feds set? Also It says the tax credit plan will change in march. Between the state rebate IL has now and if you can still get the federal rebate of 7500 I might trade my m3p for a new one. Thoughts?

You won’t be able to sell your current one. Resell values have imploded faster than crypto.

 

[jjrandorin]

You won’t be able to sell your current one. Resell values have imploded faster than crypto.

That is one of the more silly statements I have ever read. Of course they will be able to sell it. Perhaps you ment to say "you wont be able to sell it for as much as you would have a month ago"?

 

[3sr+buyer]

If I correctly understand those limits, and Tesla's battery sourcing, the RWD Model 3 may not qualify past March, since (IIUC) its batteries come from China; but the LR battery packs used in the AWD and Performance come from the US, so they may qualify, provided the car's price is low enough and the buyer's income isn't too high.

If the LR/P packs do qualify for the full $7,500 for those within the income limits, then March may see another price adjustment, because the $6,000 difference between the RWD and LR is smaller than $7,500.

 

[funphax]

Even with the tax credit on the LR I think it's still about even for the price I paid for my 21 LR with the CA tax rebate, half the interest rate, and fuel cost saved since then.

 

[srs5694]

Am I pissed after the price dropped down like 20%? Yes.

Welcome to the world of Tesla. We've just come out of an extended period of non-stop Tesla price increases, but when I bought mine (in early 2019), prices were going up and down like a yo-yo. Whenever prices dropped, people on this forum who'd bought at the earlier (higher) price points complained. Whenever they went up, people who hadn't bought a bit earlier lamented the price increase. That's the way Tesla does business. That said, the recent Tesla price drops are pretty big compared to what was happening in 2019. In fairness, you see the same thing with traditional automakers, but the mechanism is different -- the list price is more constant, but dealers raise or lower the prices they charge depending on local demand and the buyer's ability to negotiate.

 

[Blacktes24]

Can anyone say for sure that the M3 does still qualify for the federal rebate? I could have sworn they did away with the rebate because it has sold over 500k units. or did the administration change it?

 

[Blacktes24]

You won’t be able to sell your current one. Resell values have imploded faster than crypto.

my trade in value dropped 20k in about 5-6 months before this drop. i don't even want to see it now. i wonder what tesla would offer on trade now?

 

[TesslaBull]

I paid $53,990 for M3 LR AWD with 19" wheels and red paint in December. Car is available now for $53,490 but the delivery fee is $190 higher now ($1390 vs $1200), so the price difference is $310. Assuming the $7500 tax credit applies, it would make the net cost of the same car purchased today $7,810 lower. I did also get 10,000 miles of free supercharging. If I value that at $1,000(????), then the difference is $6,810. That's alot of money but doesn't wreck my world. Are we 100% certain the M3 LR will get the full $7500?