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FSD Price Cut to $12k Tonight, Aug 31/ Sept 1 2023
- Thread starter JHCCAZ
- Start date
Ordered. I guess we'll see if delivery happens this month to transfer FSD from 2018 3. Compared to ordering the same configuration last year… $120,990 Model X Dual Motor + $3,000 paint + $15,000 FSD, it would be cheaper by $66,500 for us today.
mtndrew1
Active Member
FSD beta is, at best, a novelty. I only have it now because of the free transfer thing after I fell for the charlatan’s nonsense six years ago.
I turn it on every now and then, it tries to kill me on my test route, then I turn it back off.
Never buy anything Tesla sells as a future feature; only buy and expect what the car will do the day you drive it off the lot. FSD is worth exactly what EAP is at the moment unless impressing/terrifying friends with party tricks is worth an extra six grand to you.
I turn it on every now and then, it tries to kill me on my test route, then I turn it back off.
Never buy anything Tesla sells as a future feature; only buy and expect what the car will do the day you drive it off the lot. FSD is worth exactly what EAP is at the moment unless impressing/terrifying friends with party tricks is worth an extra six grand to you.
The price of FSD really does need to come down with the vehicles as dropping vehicle prices is intended to attract more frugal consumers and keeping FSD at the same price means it constitutes a higher % of the vehicle price, that will likely make people less inclined to buy it.
+$15k on a $110k car is easier to sell than +$15k on an $80k car
+$15k on a $110k car is easier to sell than +$15k on an $80k car
Nothing is deflating except for demand for a "doesn't quite work as we promised" FSD @ $15k.
E90alex
Active Member
EAP/FSD should be like $3000/$6000. At most $4000/$8000.
Many automakers include features from EAP standard or in a much less expensive package. And the features actually work and are not coming soon (eg auto park and summon on non-USS cars)
AlanSubie4Life
Efficiency Obsessed Member
Someone has to be the first one to make a move in a deflationary environment. Tesla is at the forefront, as usual.
Tesla lowering pricing will allow them to sell higher volumes.
Imagine their competitors are not going to be happy.
Imagine their competitors are not going to be happy.
Haha yeah, I didn't even try to speculate regarding motivations or implications.
But since you brought it up, here's a little thought:
Tesla just announced the transition of CFO from Zach kirkhorn to the new guy Vaibhav Taneja. Together they can attempt certain moves and adjustments that might otherwise create a minor dispute with Elon, and if he gets annoyed, Vaibhav has a bit of cover. If it works out well, he gets the credit and builds confidence.
With that, I'm really not trying to over-interpret it. We have no idea of their internal discussions around this, and we have to be careful not to assume that the sparse set of facts we know from the outside are the same as the internal concerns.
So another and less conspiratorial interpretation is this:
Tesla has demonstrated a willingness to manipulate prices almost moment by moment to modulate demand and inventory levels. Elon is all in on that strategy. So despite his general attitude about FSD future value, he agrees it's time to play around with the FSD price vs take-rate curve. And he just pointed out that HW4 FSD development (now or very soon affecting all production models) will lag the progress on HW3 cars. So, try to sweeten the pot a little bit to keep new buyers interested in the FSD option, and also motivate those on the fence that there's a window of opportunity to buy "cheap".
Other theories invited, as of of course I have no inside info.
DanCar
Active Member
Wife said it is because projected earnings for the quarter are down and Elon is adjust some levers to increase earnings.
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ChooseFreedom
Member
Am I missing something? What deflationary environment?
Last time I checked the inflation rate was still above zero.
So technically, yes the inflation rate moving from 5% to 3% is a temporary deflationary move.
But +3% inflation is still INflation, not DEflation. Fiat money is still losing its buying power over time.
So in this example, unless your personal income is going up more than 3%, your money will continue to lose it's buying power.
Your $1 now will be worth $0.97 next year. So even if the car prices stay the same, you can afford less than the year before.
Don't feed into what the Fed tells you, that inflation is necessary. It's not. Inflation is invisible theft by the Fed from money printing.
I'm not going to get political. But people need to educate themselves more on how their money works, or doesn't.
Start here: WTF Happened In 1971?
AlanSubie4Life
Efficiency Obsessed Member
This is technically disinflation.
We are not in a deflationary environment.*
* Except for FSD
Only missing some dry humor.
They use the term "disinflation" when inflation rates lessen.
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Understanding Deflation vs. Disinflation
Deflation is a decrease in general price levels, while disinflation is what happens when prices grow at a slower rate than before.
They should cut the price for all non-USS cars since they do not yet get Autopark, Summon and (the worthless) Smart Summon.
ChooseFreedom
Member
Apologies for missing the humor. I can appreciate it.
Right, disinflation.
Technology advancements are what create true deflationary environments. Just look at electronics.
TV's, computers, etc... For the most part, their markets are deflationary.
Think about what those old huge projection TV's used to cost new back in the 90's. And then look at what TV you can get for that price now. Not even adjusting for inflation, the TV tech is so much better now. Same goes for computers, cell phones.
Tech should make things cheaper. But people need to ask themselves why other products aren't following that same pattern.
50 yrs ago, a middle-aged guy with a high school diploma could afford to have a family, a car, a house, all on his income alone.
Now, a married couple with college diplomas, who both work full time, no kids, can struggle to afford even a modest house, and have little hope to save for any kind of real retirement.
Broken fiat financial system.
johnny_cakes
Member
At best, it's a fun party trick. At worst, it's dangerous. I keep trying it every time I get an update but I've been disappointed every time.
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Politicians regularly [promote | attack] "deep budget cuts" when a planned or proposed increase gets scaled back to a smaller increase. It's almost never really a "cut" that's on the table.
Olle
Active Member
Great points, but it also depends on what you measure. Things that are mass produced with high automation (e.g. as cars) may deflate with increased productivity, while fixed assets and manpower are mostly going up. Everything combined, the official inflation number is still positive.
That said, I find it disturbing and non confidence inspiring that the FSD price was reduced.
