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

[black_motor]

Quick question... Can we go by the date the DMV registered your new vehicle as "went into service"?... Not sure if DMV goes by the date you purchase the car or the date they receive the papers.

Yep that could work. Again, you don’t need to prove anything. It is only if they audit that you’ll have to provide the document.

When did dmv register your car?

 

[TezlaLink.com]

Cancel your order and forgo the penalty, its most likely worth it.

Check your documents in Tesla app. I received a text alerting me of an updated order sent to my email, which reflected the new decrease. Motor Vehicle Order Agreement (MVOA).

 

[Socalteddy]

I'm one the the many people that paid about 14 percent $$$, plus loss of tax credit on my 2023 Tesla Model 3 Performance. Yes, it's upsetting, but that's business and the way things work out at times.

If Tesla wanted to help people fell somewhat better about this price reduction beating, he could of told recent buyers hurt by these changes that he will allow credit towards up graded software packages, like turning autopilot, or Tesla Charge stations credit.

 

[Operator64]

I'm one the the many people that paid about 14 percent $$$, plus loss of tax credit on my 2023 Tesla Model 3 Performance. Yes, it's upsetting, but that's business and the way things work out at times.

If Tesla wanted to help people fell somewhat better about this price reduction beating, he could of told recent buyers hurt by these changes that he will allow credit towards up graded software packages, like turning autopilot, or Tesla Charge stations credit.

Or you can just understand that’s business and giving away things for free is not good business. You cannot mix socialism and capitalism as you see fit to benefit yourself

 

[vickh]

At the same time, I’m not surprised they did this. Elon said it himself awhile back. A factory that doesn’t produce at full capacity is just losing money. They have a 2M unit capacity so might as well drop price enough to sell 2M units. Makes perfect sense.

Correct he is more concerned with penertration (in more ways than one) He doesn't care as much about max profits per unit. More so about total #s. Until recently the market has rewarded him for that growth

A lot of traditional car companies try to soak every sale and service appt. TSLA is refreshing for value car buyers like myself

 

[vickh]

Yep that could work. Again, you don’t need to prove anything. It is only if they audit that you’ll have to provide the document.

When did dmv register your car?

In my case i took a last minute delivery during 6/30/19 credit phase out. I went by delivery date not DMV. Service is when you drive of lot and have possession is what I was told.

I think claiming ignorance here is fine either way since it's a grey area.

 

[maximizese]

Or you can just understand that’s business and giving away things for free is not good business. You cannot mix socialism and capitalism as you see fit to benefit yourself

I voted disagree because we live in a blended environment of socio-capitalism whether we like to admit it or not. On the business side, Tesla and many other publicly traded companies went through an artificial spike of demand, constricted supply, cash-injected consumers, and a psychological paradigm shift that caused many to realize their mortality (a deadly infectious virus affecting everyone 1-3 degrees removed). The pull forward finally stopped and Tesla began to see the quantity demanded at the higher price point start to soften. We're assuming that production costs have also abated and Tesla is responding to chase demand by lowering their prices and their net margin. Absolutely nothing wrong with that and it's inline with what just about every other company would do.

However, if Tesla was concerned about its goodwill and making some of their customers feel better about the company and how they are treated, Tesla can do a number of things to help that won't necessarily cost them much in return such as offering a finite amount of free Supercharging, extending the warranty a tad, etc. Any good business would have a playbook with plans A-Z for various business climates. Remember with DIS offered free Disney theme park tickets for every American on their birthday in 2009 as a response to the Credit Crash recession? They even gave gift cards equivalent to the price of admission to their annual passholders. That move was genius. I know it's not solely attributed to the promotion, but look at the stock of DIS from 2008-2016 attached below:

On the other hand, some consumers have become far too entitled with goodwill price adjustments and returns that I sarcastically would suggest those folks to go to Wall Street and ask if they can return some of the securities they purchased last quarter at a higher price because they appear to be on sale right now.

 

[awarren82]

Did used M3 LR also take big hits or not as bad since you can't buy them new anymore? I bought a 2022 M3 LR in May '22 and trying to determine if it's financially feasible to upgrade to Y LR with new price break and incentive. If so, consensus on best place to sell current car?

 

[buster84]

This. It doesn’t matter when you bought the car MSRP doesn’t drop. The dealers provide discounts of 10k or so but they never drop msrp which means the value doesn’t tank for every car with a 10k discount. This is why the values didn’t plummet in Dec 2022 because they were offered a discount not a pure msrp reduction. When musk did that he killed the value overnight.

Someone please show me another manufacturer that has screwed its customers by reducing their msrp by 5k or more overnight?? I’m waiting….

Customers should sue with a class action. At the very least this case could force them to do msrp and be forced to show markups and markdowns like dealers are required to do. Elon musks sliding the rules is the reason teslas move tanked the market. Imagine being a new buyer today, I’d be afraid of another 20% cut or more. We bought a car they slowly depreciate they don’t drop 20k over night. This is not the stock market.

I bought in early 2022 and it suck’s. My car dropped from 56k offered with carvana in nov 2022 to 32k today. No other car has ever done this. I hope a class action starts because I’m signing up. Whether we can get compensated or not for them not having an MSRP or not is the question. If anything it will force change to prevent future customers from being screwed. I for one am done with Tesla forever after this. Screw me once and I’m out for good. I also have their solar panels and now I’d never recommend them as a company again. Skirting rules just to screw customers.

I posted this on the Y forum thinking I was in the 3 lol, but it’s relevant here too as I have a model 3.

Also let’s never forget Elon musks own words. He killed his brand overnight.

Tesla vehicles are now 'appreciating assets' due to self-driving capability, says Elon Musk

Elon Musk has made quite an important claim about Tesla vehicles today; the CEO said that Tesla’s vehicles are now...

electrek.co

 

[Operator64]

I voted disagree because we live in a blended environment of socio-capitalism whether we like to admit it or not. On the business side, Tesla and many other publicly traded companies went through an artificial spike of demand, constricted supply, cash-injected consumers, and a psychological paradigm shift that caused many to realize their mortality (a deadly infectious virus affecting everyone 1-3 degrees removed). The pull forward finally stopped and Tesla began to see the quantity demanded at the higher price point start to soften. We're assuming that production costs have also abated and Tesla is responding to chase demand by lowering their prices and their net margin. Absolutely nothing wrong with that and it's inline with what just about every other company would do.

However, if Tesla was concerned about its goodwill and making some of their customers feel better about the company and how they are treated, Tesla can do a number of things to help that won't necessarily cost them much in return such as offering a finite amount of free Supercharging, extending the warranty a tad, etc. Any good business would have a playbook with plans A-Z for various business climates. Remember with DIS offered free Disney theme park tickets for every American on their birthday in 2009 as a response to the Credit Crash recession? They even gave gift cards equivalent to the price of admission to their annual passholders. That move was genius. I know it's not solely attributed to the promotion, but look at the stock of DIS from 2008-2016 attached below:

On the other hand, some consumers have become far too entitled with goodwill price adjustments and returns that I sarcastically would suggest those folks to go to Wall Street and ask if they can return some of the securities they purchased last quarter at a higher price because they appear to be on sale right now.

Everyone wants a handout

 

[buster84]

Did used M3 LR also take big hits or not as bad since you can't buy them new anymore? I bought a 2022 M3 LR in May '22 and trying to determine if it's financially feasible to upgrade to Y LR with new price break and incentive. If so, consensus on best place to sell current car?

Yup lost 20k overnight. Got an free estimate for 56k in November, renewed my offer yesterday and it’s 33k. I paid 52k so I didn’t loose out the extra 6k that others did after me, but I still lost 22k in value practically over night. No used car has ever dropped like this ever. It’s unheard of. So much that carvana stopped quoting Tesla. People are now getting the stumped carvana error.

 

[launchd]

Yup lost 20k overnight. Got an free estimate for 56k in November, renewed my offer yesterday and it’s 33k. I paid 52k so I didn’t loose out the extra 6k that others did after me, but I still lost 22k in value practically over night. No used car has ever dropped like this ever. It’s unheard of. So much that carvana stopped quoting Tesla. People are now getting the stumped carvana error.

I have no idea why people continue to get quotes from Carvana and Vroom, both companies are on the brink of bankruptcy and are being very reserved with their offers now. CarMax seems to be providing the best offers (on ICE cars, not sure about Tesla) - I say this because two friends in the last two months sold their cars (which they both bought out of leases) to CarMax because that's where they got their highest offers.

 

[buster84]

I have no idea why people continue to get quotes from Carvana and Vroom, both companies are on the brink of bankruptcy and are being very reserved with their offers now. CarMax seems to be providing the best offers (on ICE cars, not sure about Tesla) - I say this because two friends in the last two months sold their cars (which they both bought out of leases) to CarMax because that's where they got their highest offers.

There are a lot of quotes posted on here from the official Tesla trade ins that quote exactly the same. Some in this thread and in others, like model y. It’s everywhere, and it started with tesla reducing their side and the rest matching Tesla.

 

[T3SLAROD]

I have no idea why people continue to get quotes from Carvana and Vroom, both companies are on the brink of bankruptcy and are being very reserved with their offers now. CarMax seems to be providing the best offers (on ICE cars, not sure about Tesla) - I say this because two friends in the last two months sold their cars (which they both bought out of leases) to CarMax because that's where they got their highest offers.

This. Carvana and Vroom are pretty much in their grave.

The Tesla Trade in is about the same because Tesla doesn’t even think their cars hold value. Basically Musk lied about the cars appreciating. Even when prices were high Tesla would still low ball you on a Tesla Model whatever trade in.

 

[shodnett]

It would be nice if Tesla offered a free upgrade to anyone who purchased a new car last year (EAP/FSD, Lifetime Premium Connectivity...) to offset the instant depreciation. Not going to happen but would help the sting a little.

 

[vidt]

This is just me crying... but I feel like anyone who took delivery in the last 6 months ( like myself ) who paid full price for their car, should get some kind of compensation from tesla. Maybe not a cash refund, but FSD upgrade or something...

I bought a LR MY as part of end of year 'deal'. Took delivery 12.29.22. Went to sales showroom to ask about compensation and the following;
either an upgrade or "credit" to put towards accessories/Enhanced Auto.
*Return policy
*What is TESLA current trade-in value of my 2023 MY with 300miles. Can I trade it in and get the current pricing.
*FL Lemon Law
*Wells Fargo issues (I financed through TESLA so a nice little double dip for them) As they would have no skin in the game - I am upside down on the loan. I put $10k down and owe $55k.
*Any sort of waiver that I could sign to say that I won't sue in exchange for a credit.
*Any sort of waiver that I could sign to void my warrantee in exchange for $6k back.
*Within 30 days of purchase you can back out of TESLA's requirement for resolution with an arbitrator and ask for a Judge/Jury trial with a written letter - where do I send that.

Props to the manager there - she deflected, no or "don't know" on all options, informed me how lucky I was to not have taken delivery in the last two weeks AND imagine if I had have bought when they were really overpriced, told me there is no point going the arbitrator route or otherwise - I'd lose.

She did falter a bit on the tech upgrades, maybe if enough of us complain to the Head Twit he'd fold from all the hate.

Basically, whoever supported and promoted TESLA by buying a MY in the last 18months (and then showed all our friends and told them to get one) has been screwed. Reputation is everything - we'll see what happens.

My bet is that Musk waits until all the free publicity 'hate' chat to die down and then start more free publicity with the free tech upgrade Chat for everyone who got burned.

 

[vcor]

The prices were higher last year due to higher costs for components, materials, and shipping. In addition, demand was high. With a bit lower demand and prices Tesla pays for parts, it makes sense to lower the prices. It doesn't mean Tesla owes those that bought vehicles when Tesla's costs were high should get refunds. Tesla already paid those higher prices to make those vehicles. Prices fluctuate in the automotive industry. Tesla should be commended for taking the lead in making these price adjustments. So far, no other automakers or dealers are lowering prices, but just taking extreme profits and screwing the consumer.

 

[OutRun]

Never thought I'd see the day a Tesla depreciating faster than a used Land Rover yet here we are.

 

[SO16]

Prices similar to two years ago.

 

[buster84]

Never thought I'd see the day a Tesla depreciating faster than a used Land Rover yet here we are.

Never thought I’d see the day a cars value could plummet 22-30k over night like we invested in the stock market… yeah Elon did that and killed his brand name overnight. No trust will ever be given to him again for his cars. In 3 months he could reduce them again reducing values by another 10k anything could happen because of his stupidity.

Elon destroyed a decade of brand loyalty overnight.