Saw this on Reddit:
Wowzers, $7k is a lot! And no more confusion about whether the after price is garaunteed or not.
Wowzers, $7k is a lot! And no more confusion about whether the after price is garaunteed or not.
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Starting to climb out of my price range for now...I’ll probably have to wait until the technology matures and competition brings the cost down to a reasonable level.
Ludalicious
Active Member
I mean they've dropped FSD from the purchase menu. Each sucker was paying $3k.
Now we know that Elon Musk's Advanced Summon tweets were just priming for this EAP increase.
LOL. You have it so completely wrong.
I think Tesla is signaling they are giving up on post purchase activations.
EAP is awesome and is much more affordable rolled up into a lease or loan at a low interest rate or payment.
Adding EAP on a credit card with an apr of 20% and 30 day grace period is no go. Makes almost no sense.
Hopefully by making it more punitive, it encourages the hold outs to just get it at the best price and enjoy the future.
Without looking at the data I’m going to assume MR has the lowest take rate of software of any of the builds.
Making post delivery more punitive encourages buyers to step up NOW.
EAP is awesome and is much more affordable rolled up into a lease or loan at a low interest rate or payment.
Adding EAP on a credit card with an apr of 20% and 30 day grace period is no go. Makes almost no sense.
Hopefully by making it more punitive, it encourages the hold outs to just get it at the best price and enjoy the future.
Without looking at the data I’m going to assume MR has the lowest take rate of software of any of the builds.
Making post delivery more punitive encourages buyers to step up NOW.
I was planning to add it to my P3D later since I don't need it now. Oh well. I wouldn't be surprised if they lowered it again. They did lower it at the end of Q3, right? Fking Tesla market price at its best.
EAP was 5500 instead of 6000 for a promotion for post delivery.
Nothing stays consistent but Tesla supposedly honors the lowest price you saw post delivery which would have been 6000.
I think they will want to not raise it beyond 6000 to previous buyers but who knows. They can give it out for free the day after you buy it.
Possibly. However that was the last of it. They have now put the language on it "After delivery, prices are subject to change".
Can’t read those guys but common sense says the more they raise it post delivery the less
chance of ever capturing that incremental income.
I guess you might as well add it sooner than later If you use it and plan to keep the car for awhile.
BluestarE3
Active Member
That certainly will the case for me and, I suspect, a lot of other price conscious buyers who are opting for the MR or still holding out for the SR. At $6,000, I was open to adding EAP at a later date if the technology improves to the point that it becomes attractive to me. At $7,000 or potentially higher, it's a no-deal for me and a loss of additional revenue for Tesla.
I can only speculate on their reasonings as information is assymetric. They know their take rate exactly and we know nothing.
It could be the conversion rate is only 1 percent at the $6,000 level for post delivery.
Buy forcing the rate to $7,000 they get the post delivery conversion rate to 0 but increase preorder take by 2%. Net win for Tesla.
Tesla’s eventual cpos will dominate the market because they can just turn on EAP and offer it free or subsidized. This will slaughter the secondary resell market for owners.
Far outside shot but a speculation I would have is that the take rate is just going to be abysmally low period for MR and SR Model 3 software options.
If Tesla was able to drop in a -minimal- computational board that covers safety but no EAP/FSD capability they can save a lot of money on the cost of car.
$7,000 might explain the cost needed to retrofit those new cars if someone actually did want it later.
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TWANGnBANG
Member
Excellent take on Tesla’s possible pricing strategies from start to finish. I never even considered the CPO impact on private party sales of used Teslas like that, and I think you’re absolutely right.
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