TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Falling CDN$ affect Tesla prices?

Discussion in 'Canada' started by Tae Jo, Jan 14, 2015.

  1. Tae Jo

    Tae Jo Member

    Joined:
    Jul 18, 2014
    Messages:
    20
    Location:
    Toronto, Ontario
    I placed my order last month before the fall, but it'll be delivered late April (scheduled it that way). Do you think Tesla will adjust CDN prices and increase the base/option prices in the short term?
     
  2. MikeC

    MikeC Active Member

    Joined:
    Jul 9, 2012
    Messages:
    2,405
    Location:
    Los Angeles
    They'll honor your reservation price even if prices do go up.
     
  3. Doug_G

    Doug_G Lead Moderator

    Joined:
    Apr 2, 2010
    Messages:
    15,850
    Location:
    Ottawa, Canada
    Also Tesla does build a little exchange rate hedge into the price. That said, the dollar change has no doubt exceeded that hedge.

    It remains to be seen how long the price of oil stays where it is.
     
  4. mnx

    mnx 2013 P85

    Joined:
    May 6, 2009
    Messages:
    2,281
    Location:
    Ancaster, Canada
    I think the term you mean is buffer. It's unlikely but Tesla could have had an actual hedge or forward contract in CAD/USD...

    Food for thought as the USD has advanced vs. CAD a lot of the companies revenue is in USD and this makes their daily operational costs in CAD cheaper. Stuff like salaries, rent for facilities etc. I wonder how those costs compare to the # of cars being purchased in Canada. It might be the case that Tesla's Canadian revenue and operational cost changes in USD might actually be unchanged...
     
  5. SCY7H3

    SCY7H3 Member

    Joined:
    Dec 31, 2014
    Messages:
    21
    Location:
    Canada
    Agreed ^

    Also to mention, falling oil prices that will make the switch to a Tesla less appealing at this point. If they were to raise prices, I think they'd end up losing a lot of potential customers.

    But I doubt their prices will go up because the model S has been around for a while, their manufacturing processes have become more efficient and a lot of that invested R&D has been getting paid off, it will just balance if not lower the cost.

    Even if they have to eat some loss, it would not be in their best interest to raise prices. Sort of the same idea with Sony and their PlayStation, they'll make up the loss per console sold through volume and future sales. Eventually everything works out and everyone's happy. Greed never helped anyone, not in this day and age.
     
  6. wycolo

    wycolo Active Member

    Joined:
    May 16, 2012
    Messages:
    2,422
    Location:
    WY
    > Eventually everything works out and everyone's happy. [SCY7H3]

    'Cept the Russians maybe.
    --
     
  7. Doug_G

    Doug_G Lead Moderator

    Joined:
    Apr 2, 2010
    Messages:
    15,850
    Location:
    Ottawa, Canada
    Don't get technical with me!
     
  8. mnx

    mnx 2013 P85

    Joined:
    May 6, 2009
    Messages:
    2,281
    Location:
    Ancaster, Canada
    Sorry, I'm still embarrassed that I didn't realize a battery couldn't charge/discharge at the same time. :)
     

Share This Page