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

[rootusrootus]

You can rationalize it all you want, but the rebate was in response to the price drop. The fact that there was fine print about agreeing not to sue them was prudent but not at all the point of the rebate. They were soothing customers who had just bought a new Bolt only to find out the following model year would be $6000 less.

I don't get why anyone feels the need to white knight for Tesla? They're worth 100s of billions of dollars, they don't need you to do this for them.

 

[rrsrsr]

Sure it does.


“GM offers Chevy Bolt EV owners $6,000 if they promise not to sue over battery fire recall fiasco. General Motors has started offering Chevy Bolt EV owners a $6,000 refund as long as they promise not to sue over the battery fire recall fiasco of last year.”

GM offers Chevy Bolt EV owners $6,000 if they promise not to sue over battery fire recall fiasco

General Motors has started offering Chevy Bolt EV owners a $6,000 refund as long as they promise not to sue...

electrek.co

That’s a pretty nefarious ”goodwill” offer. I don’t remember hearing about that. Can you imagine the international outcry that would happen if Tesla ever tried something similar? it would be front page news on every major media publication, politicians would be calling for investigations etc.

 

[DrChaos]

Smart move by Ford. Maybe they’ll start financing Teslas in the future.

No, finance profits are low quality profits, because there's tons of embedded risk in recessions. It's why banks trade at ~10 P/E, and they specialize in financial risk control.

What is the credit risk to Ford when people start defaulting on their loans on big expensive trucks when their trades business flatlines during a recession? Each loan is 4-7% interest in profit, but even a few percent in defaults (and repo-recoveries are inevitably a huge loss) will completely overwhelm profits on the rest.

GM's and Ford's big credit finance division sure didn't save them in 2008. Jack Welch did the same thing to GE, turns out it was all bullshit fake money and now GE is de-financializing itself, and going back to the much more difficult business of trying to make money from industrial products themselves.

 

[FFR6288]

It most certainly WILL shake up the overall market. Bigly!

MANY will cancel orders for those other cars now that Teslas are lower in price.

Dealerships are going to take a bath on used vehicles (and new Teslas that they were hoping to flip).

There's a similar big thread going on over at a large Ford Mach-E forum. I was really surprised at the number of people who are cancelling their Mach-E orders and ordering a Tesla.

 

[DrChaos]

There's a similar big thread going on over at a large Ford Mach-E forum. I was really surprised at the number of people who are cancelling their Mach-E orders and ordering a Tesla.

Natural response when the choice is waiting 6 months for a $62K car vs a $53k car you can get in 3 weeks, and maybe even -$7500 less.

https://www.macheforum.com/site/threads/for-those-waiting-on-orders-what-does-the-model-y-price-drop-to-52-990-make-you-think.25110/

Objectively the mach-e is not better at a similar price point. Being 12-20k cheaper is a huge no brainer..

This is the great sucking sound of Tesla production capacity spooling up to full power. For many years there was so much talk about Tesla never being able to be profitable against the huge capacity of the incumbent automakers and their cost advantage. "structurally bankrupt" was the phrase.

Looks like it's going to be the other way around. A million a year capacity in LICE doesn't give the same in EVs. Now the competitors have to scale up while losing even more money on each car, and trying to manage the decline of their LICE business.

 

[mylapore]

At this point it is in every recent Tesla owner's self interest to raise a stink about them. First we get hosed with the removal of a well functioning features without a readily available alternative, and now there is this large price drop. What's next - a new model release with shiny new HW that's necessary for their ADAS, but not backward compatible?

What will it take for them to prioritize existing customer satisfaction over selling new cars? I think the first step has to be a concerted effort from affected customers to raise awareness of all these ongoing issues/company culture to hold back prospective customers from buying their cars.

 

[SO16]

Every couple years when Tesla lowers prices, people that feel “wronged” will raise a stink.

Eventually it calms down, nothing changes and life goes on.

This time will be no different.

 

[DrChaos]

What will it take for them to prioritize existing customer satisfaction over selling new cars?

A lamp with a blue genie.

They have no interest in anything other than selling cars and now megapacks, as those make them money, and everything else doesn't.

 

[launchd]

This is the real story to follow folks.

With Tesla trailing in China, Musk unleashes price war with Warren Buffett’s BYD

Tesla is slashing prices in China for a second time since late October, as BYD is widening its lead.

fortune.com

 

[mylapore]

We'll, then we should shout it out to the rest of the world! Every time a potential customer hears this and is dissuaded from making a purchase - Tesla loses, and we, the existing customer, win as it gives them one more reason to think about customer satisfaction.

A lamp with a blue genie.

They have no interest in anything other than selling cars and now megapacks, as those make them money, and everything else doesn't.

 

[vickh]

Those SR+ used to cost $37000.

$35K for my SR - fed tax credit. I did pay $2K for AP later though

 

[vickh]

Sure it does.


“GM offers Chevy Bolt EV owners $6,000 if they promise not to sue over battery fire recall fiasco. General Motors has started offering Chevy Bolt EV owners a $6,000 refund as long as they promise not to sue over the battery fire recall fiasco of last year.”

GM offers Chevy Bolt EV owners $6,000 if they promise not to sue over battery fire recall fiasco

General Motors has started offering Chevy Bolt EV owners a $6,000 refund as long as they promise not to sue...

electrek.co

The funny part is if anyone paid MSRP for at Bolt, close to a SR 3 price.

 

[awarren82]

So I just spent $27k to drive a Model 3 for 7 months and there's nothing I can do? WTF

 

[vickh]

So I just spent $27k to drive a Model 3 for 7 months and there's nothing I can do? WTF

Buying at the peak of inflation, similar to those who bought a house last year. They will recover though.

I do think car prices will go up soon too. This tax credit will be gone by 3/31 or 3/1? then you will "recover" some of your equity too. Just don't sell till April

 

[Fishstyx]

This change is targeting people like me. I honestly didn’t expect to be a Tesla owner. As of Friday I had a Mach E GT on order in since last year that was still 4+ months from possible delivery. I saw the news Friday morning and by lunchtime I placed an order for a MYLR and cancelled the Mach E order. Thanks to Sandy Munro I was already concerned over the complexity a likely more fault prone design of the Ford compared to Tesla. With the price drop there was no way I was paying an almost 30K premium for the Mach E. I decided I don’t need the MYP and can add the 2k upgrade later that gets close enough to my go fast needs.

 

[TesslaBull]

So I just spent $27k to drive a Model 3 for 7 months and there's nothing I can do? WTF

Drive it for 10 years for $60k! Much less if you sell it after ten years!!

 

[vickh]

Drive it for 10 years for $60k! Much less if you sell it after ten years!!

$ cost averaging at it's best!

People are keeping their car longer and TSLA is the best for that IF repair costs continue to come down.

 

[Apprunner]

This change is targeting people like me. I honestly didn’t expect to be a Tesla owner. As of Friday I had a Mach E GT on order in since last year that was still 4+ months from possible delivery. I saw the news Friday morning and by lunchtime I placed an order for a MYLR and cancelled the Mach E order. Thanks to Sandy Munro I was already concerned over the complexity a likely more fault prone design of the Ford compared to Tesla. With the price drop there was no way I was paying an almost 30K premium for the Mach E. I decided I don’t need the MYP and can add the 2k upgrade later that gets close enough to my go fast needs.

Congrats. That acceleration boost makes the Model Y pretty much the same as a Mach E GT. The only thing you won't get is the track mode from the Performance but unless you plan to track your family crossover, probably won't make a difference

 

[T3SLAROD]

This change is targeting people like me. I honestly didn’t expect to be a Tesla owner. As of Friday I had a Mach E GT on order in since last year that was still 4+ months from possible delivery. I saw the news Friday morning and by lunchtime I placed an order for a MYLR and cancelled the Mach E order. Thanks to Sandy Munro I was already concerned over the complexity a likely more fault prone design of the Ford compared to Tesla. With the price drop there was no way I was paying an almost 30K premium for the Mach E. I decided I don’t need the MYP and can add the 2k upgrade later that gets close enough to my go fast needs.

Congrats and welcome to the club! There are hardly any Mach-E’s on the road while every other car is a LRMY! You will fit right in! You won’t regret it especially with the revised suspension and other improvements Tesla has made like removing sensors for Vision. You will also find the Tech is vastly superior to what Ford would of had anyway. Welcome!

 

[alexgr]

Congrats. That acceleration boost makes the Model Y pretty much the same as a Mach E GT. The only thing you won't get is the track mode from the Performance but unless you plan to track your family crossover, probably won't make a difference

IMHO MYP is pointless. If you want a car that is really good in turns and on track, Tesla has M3 (and M3P) which feels a lot sportier than MY (and MYP).