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If the Model Y was considered an SUV, would Tesla have dropped the price so much?
- Thread starter golfwolf
- Start date
Ostrichsak
Well-Known Member
thesmokingman
Active Member
Tesla has more internal information than any of us. They will make decisions based on their analysis of situations. Imagine that they will want to qualify for as many govt handouts as possible, while pricing their cars according to supply/demand, cost of production and optimization of profits.
They have lots of profitable World Wide markets they can also open up to soak up any excess production.
Tesla is doing an awsome job of ramping up production. Imagine they want to find butts to fill up all those seats.
They have lots of profitable World Wide markets they can also open up to soak up any excess production.
Tesla is doing an awsome job of ramping up production. Imagine they want to find butts to fill up all those seats.
in Dec, inventory was flying off the shelves with just $7500 discount. Without the IRS nonsense, i think this would have been their hard floor.
Unintended consequence: Ford/GM bankrupt in 12 months because they cannot compete with the lowered prices of Tesla. Don't you love government meddling in the market
The government underestimated Tesla's ability to cut prices immediately. They probably expected EV makers to take a few years to produce cars cheap enough to qualify for the credit. Remember that the bill was drafted in 2021 and was passed in August 2022. Tesla was making a lot of progress while the bill was being repackaged and stalled in Congress. If not for all the political bullshit the legacy automakers would not have been in such deep *sugar* right now.
On the other hand, the credit is going to result in lower car prices which should help fight off inflation.
ElectricIAC
Good-Natured Rascal
ucmndd
Well-Known Member
Probably not all at once, but they very well could have ended up needing to anyway. The Model Y was egregiously overpriced.
Brian-MS90D
Member
In the short term IRA is wrecking the entirety of the auto market in the EV/hybrid space. Tesla is wholly responding to the chaos that IRA's unorganized rollout is causing industry-wide. Long term, IRA will do good.
* The best outcome would have been if all subsidies were eliminated, especially all oil and gas subsidies. Instead, we get a competing subsidy "war" with always changing and confusing rules and qualifications. Both sides are guilty (right & left).
* The best outcome would have been if all subsidies were eliminated, especially all oil and gas subsidies. Instead, we get a competing subsidy "war" with always changing and confusing rules and qualifications. Both sides are guilty (right & left).
The price points they chose in the US obviously were dictated by the IRA rules.
However, they also reduced prices across the world. Here in Canada there was no credit to game and yet we saw the MYLR drop 21%.
The price they picked in Canada did qualify M3SR for federal EV credit and some provincial credits. The MYLR price did qualify it for the $4K EV credit in BC. But that credit requires single income under $80K so I don't think it was a big consideration for Tesla as the MY has never qualified for any of the Canadian credits before.
If the price reduction had been a US only thing then I'd say for sure the price reductions would have been tied to whatever qualifiers were in place and if MYLR 5 seat had qualified as an SUV for $80K limit then I don't think the reductions would have been as big. But with worldwide reductions and reductions to all models in the lineup that don't have any applicable EV rebates, I think there is a lot more going on than just meeting the EV credit limits.
Demand v Supply flipped on its head late October.
However, they also reduced prices across the world. Here in Canada there was no credit to game and yet we saw the MYLR drop 21%.
The price they picked in Canada did qualify M3SR for federal EV credit and some provincial credits. The MYLR price did qualify it for the $4K EV credit in BC. But that credit requires single income under $80K so I don't think it was a big consideration for Tesla as the MY has never qualified for any of the Canadian credits before.
If the price reduction had been a US only thing then I'd say for sure the price reductions would have been tied to whatever qualifiers were in place and if MYLR 5 seat had qualified as an SUV for $80K limit then I don't think the reductions would have been as big. But with worldwide reductions and reductions to all models in the lineup that don't have any applicable EV rebates, I think there is a lot more going on than just meeting the EV credit limits.
Demand v Supply flipped on its head late October.
My guess is that this EV credit provision will be amended to fix the chaos it created. People will be very angry if GM and Ford are driven out of business.
Ford and GM should have been driven out of business during the last recession instead of our tax dollars bailing them out so they can turn around and soak us for 15k over msrp on top of that
But...but....GM is the leader of EV industry.
ElectricIAC
Good-Natured Rascal
businesses that are poorly operated should not survive. Canadians familiar with ICBC know what im talking about. Ford and GM are no different
ElectricIAC
Good-Natured Rascal
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