GBP prices and exchange rate

[asherwood]

Hi

With the value of the Pound becoming a lot stronger against the USD in recent months, this means tesla will be getting a lot more $ for the price they charge us in the UK.

Does anyone think there is a chance that Tesla may review the prices of the UK cars soon and reduce them as the pound continues to grow stronger?

Scott

 

[Evilted]

Not a snowballs chance in hell.

 

[Yev000]

There is no demand problem, so no...

 

[gangzoom]

Not a snowballs chance in hell.

Tesla have done moved UK price up and down plenty of times before, but there is usually a 4-6 months lag.

 

[ewoodrick]

Sure, they just increased the US price? Want yours increased as well?

 

[Joelly]

Interesting point that I’m hoping for anyway. They seemed to up the price after 3 months of a drop in the exchange rate. Now it’s nearly been 3 months of circa 5% increase. So it’s possible.
Its worth noting that tesla don’t hedge currencies and therefore this may have an affect and they may see it as a bonus.

 

[Joelly]

Hi

With the value of the Pound becoming a lot stronger against the USD in recent months, this means tesla will be getting a lot more $ for the price they charge us in the UK.

Does anyone think there is a chance that Tesla may review the prices of the UK cars soon and reduce them as the pound continues to grow stronger?

Scott

Interesting one here from another post. The option is $2000 in the US and £1500 here. Maybe an indication that it’s a possibility. Maybe a good way to boost demand for Q1.

 

[MrBadger]

Accessory pricing has always been different so not a great indicator.

We are long overdue a price change though. Its been several months since the last

 

[leewillis77]

The exchange rate is roughly where it was when they originally launched Model 3 in the UK, so no reason (just on the basis of that) to suspect that prices would change

 

[Joelly]

Accessory pricing has always been different so not a great indicator.

We are long overdue a price change though. Its been several months since the last

Paint was my example of this and I believe it’s also the case on 19 inch rims option and white interior.

The exchange rate is roughly where it was when they originally launched Model 3 in the UK, so no reason (just on the basis of that) to suspect that prices would change

the price has increased since it was launched in the U.K. so even just back to where it was before the price increase around September/October.

 

[Glan gluaisne]

My understanding is that companies that trade globally hedge against exchange rate variations, so the impact for them is nothing like the impact we may see as travellers changing currency at relatively short notice.

As such, my guess is that Tesla may well be working to a GBP/USD exchange rate that was "fixed" for them months ago, so the changes in the past week will have had no effect. Not sure what their arrangements are, but one thing we do know is that Elon Musk understands the world of finance, and international trade, fairly well. He didn't make his money from space ships or cars, did he?

 

[Joelly]

My understanding is that companies that trade globally hedge against exchange rate variations, so the impact for them is nothing like the impact we may see as travellers changing currency at relatively short notice.

As such, my guess is that Tesla may well be working to a GBP/USD exchange rate that was "fixed" for them months ago, so the changes in the past week will have had no effect. Not sure what their arrangements are, but one thing we do know is that Elon Musk understands the world of finance, and international trade, fairly well. He didn't make his money from space ships or cars, did he?

Tesla do not hedge foreign currency. I know that means that there is a possibility of a decrease, but it also may be treated as a bonus for tesla in the short term.

also, previous increase came after about 3 months of lower FX, we are nearing 3 months of circa minimum of 5% increase. If it’s going to happen, my guess would be mid to late jan/early Feb.