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Inflationary Price Increase coming?

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Both sides of this argument have valid points. We are all speculating on the EV landscape over the next few years and of course nothing is certain.

IF prices on competitor EVs catch up, then Tesla is ahead of the curve due to their high margin and will likely will stay ahead on technology and efficiency due to their massive head start. They would have already banked on their mid-year price increases while slowly whittling away at their massive delivery backlog by the time legacy automakers even have a chance to implement year end model (and price) refreshes.

IF prices do not match Tesla's increase by end of the year, they do not necessarily need to lower their pricing on existing models since they have now carved out space for a lower priced vehicle/version in their lineup (perhaps less acceleration or battery capactiy). For example, Tesla can very easily bring back a 50k Model Y with say... a 5.2sec 0-60 (just an example) and then allow for electronic upgrades to increase acceleration to match current/more expensive models - similar to the 2k accel boost they currently offer. This would not cannibalize their more expensive versions (aka current pricing) since lower priced entrants can simply upgrade and effectively matching the higher pricing. They would require basically zero change in production as this would only need to be software limited. Nor would it affect current increased pricing on already-purchased vehicles. Your more expensive Y (with better specs) will continue to be valued at its higher price.

Either way seems like a win-win here.
 
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I can't imagine much downside for Tesla. They hold all the cards compared to all the others and have so many options so can do pretty much whatever they want. Whereas everyone else is just realizing EVs are a thing. Tesla has 3 plants now around the world that are capable of huge capacity and even Freemont may eventually get a facelift. Ford, GM...literally everyone...the billions of $ it will take to even begin to compete seems unobtainable. Sure they have showcased some vehicles they claim will come to market 'soon' but I will believe it when I see it. And no way in hell Ford produces the lightning at $40k - look for that price to increase. Even then mass production of those products is not something that will happen yet for years. The only competition I can see is Chinese manufacturers. And if they can break into the U.S. market then Tesla may have some competition here at home. But even in China I believe the MY and M3 are among the best sellers. Long TSLA.
 
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I can't imagine much downside for Tesla. They hold all the cards compared to all the others and have so many options so can do pretty much whatever they want. Whereas everyone else is just realizing EVs are a thing. Tesla has 3 plants now around the world that are capable of huge capacity and even Freemont may eventually get a facelift. Ford, GM...literally everyone...the billions of $ it will take to even begin to compete seems unobtainable. Sure they have showcased some vehicles they claim will come to market 'soon' but I will believe it when I see it. And no way in hell Ford produces the lightning at $40k - look for that price to increase. Even then mass production of those products is not something that will happen yet for years. The only competition I can see is Chinese manufacturers. And if they can break into the U.S. market then Tesla may have some competition here at home. But even in China I believe the MY and M3 are among the best sellers. Long TSLA.
1) The Lightning is coming this spring and rolling off the production line as we speak. it is not some hypothetical vehicle
2) The Lightning goes from anywhere in the $50s upwards. a 300+ mile Lightning will cost you mid $70s. Same goes for the R1T. Never mind - a mundane sub compact Model Y AWD runs at $64k+ ... When/ if the Cybertruck comes you bet it'll be more than a Model Y AWD and likely priced in line with Ford/Rivian and Co.
 
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Having owned a lot of Audis in my life, there is a huge difference between Audi and Tesla as a brand. Buying a $65K SQ5 Prestige will get you a true luxury sport SUV with a solid fit, finish and ride and high quality interior. Obviously the 0-60 performance and technology won't match Tesla, but their digital cockpit display is beautiful. I do agree that their $30 a month data rates for Google maps and connected services is ridiculous and idiotic.
You'll also see a difference in how you're treated after the sale. With Tesla, their customer service is non-existent and service is hit or miss. Audi and all of the true luxury brands spend a considerable amount of time and money on customer service and retention.

The Model Y is not a $60k+ plus vehicle. All of the vehicles in Tesla's lineup are overpriced, but they have done a great job at being 1st to market with widescale EVs and Elon has done a great job selling and creating a cult following. The realists know that it won't last the way it's going. Tesla will need to re-evaluate their prices and customer service once there's more competition. The pandemic was a saving grace for Tesla. If not for the pandemic I think Rivian and Lucid would have been able to produce more vehicles undercutting Tesla's market share.
I'll stand by my comparison between my Audi Q5 and my Model Y, creases, knobs and bits of trim are not the sole definition of luxury. I have no problems with fit and finish on my Sept 2021 Model Y, and I appreciate the clean lines and attention to aerodynamics. The Q5 was a beautiful car with excellent tech, I kept Audi Connect until they dropped Google Maps for 2018 models. The tech and display are just better in a Tesla. It's silly to characterize current demand and buyers as part of a "cult". I bought mine because I believe it's a better car for a multitude of reasons..

On another note, exactly how does the pandemic benefit Tesla production over Rivian and Lucid ramps?

I have no doubt that Tesla will adjust prices both up and down based on production costs and demand. Note that the current round of price increases are for FUTURE deliveries in a disastrous escalation of raw material costs, The test of pricing is the rate of orders. Tesla may have better prepared but for expansion they still need massive amounts of nickel, aluminum and chips, all affected by Putin's war.

It might be worthwhile to log onto a Mac E forum and note the myriad of problems that customers are having with dealers on issues that have arisen with their cars.
 
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I'll stand by my comparison between my Audi Q5 and my Model Y, creases, knobs and bits of trim are not the sole definition of luxury. I have no problems with fit and finish on my Sept 2021 Model Y, and I appreciate the clean lines and attention to aerodynamics. The Q5 was a beautiful car with excellent tech, I kept Audi Connect until they dropped Google Maps for 2018 models. The tech and display are just better in a Tesla. It's silly to characterize current demand and buyers as part of a "cult". I bought mine because I believe it's a better car for a multitude of reasons..

On another note, exactly how does the pandemic benefit Tesla production over Rivian and Lucid ramps?

I have no doubt that Tesla will adjust prices both up and down based on production costs and demand. Note that the current round of price increases are for FUTURE deliveries in a disastrous escalation of raw material costs, The test of pricing is the rate of orders. Tesla may have better prepared but for expansion they still need massive amounts of nickel, aluminum and chips, all affected by Putin's war.

It might be worthwhile to log onto a Mac E forum and note the myriad of problems that customers are having with dealers on issues that have arisen with their cars.
I guess you didn't actually read my post explaining the difference between Tesla and Audi, and I guess all of the other true luxury brands. You are correct, the "creases, knobs and bits of trim are not the sole definition of luxury", which I pointed out in my post. What separates a luxury car brand from Tesla is the quality of materials used in the car, QA of production and also how the brand treats their customers pre-sale, during the sale and especially post-sale.
Can you honestly say the build quality of your MY, ride quality and customer service from Tesla is at the same level as Audi?

The pandemic benefited Tesla by slowing down the production of its EV competitors. Yes, Tesla was first to market and has the lead which is a nod to them. But, if the pandemic did not cause supply chain shortages and labor shortages there would have been more competition available. Which is better for everyone as that would keep the prices down across the board.
 
I'll stand by my comparison between my Audi Q5 and my Model Y, creases, knobs and bits of trim are not the sole definition of luxury. I have no problems with fit and finish on my Sept 2021 Model Y, and I appreciate the clean lines and attention to aerodynamics. The Q5 was a beautiful car with excellent tech, I kept Audi Connect until they dropped Google Maps for 2018 models. The tech and display are just better in a Tesla. It's silly to characterize current demand and buyers as part of a "cult". I bought mine because I believe it's a better car for a multitude of reasons..
100% agreed from a former X3 owner.
 
you also don't have Audi shipping cars with missing USB C ports, trunk cover, trunk liners etc. and telling the customer only *after* he/she finds out that this will be "installed by a mobile service tech at a later time" ...
I guess you didn't actually read my post explaining the difference between Tesla and Audi, and I guess all of the other true luxury brands. You are correct, the "creases, knobs and bits of trim are not the sole definition of luxury", which I pointed out in my post. What separates a luxury car brand from Tesla is the quality of materials used in the car, QA of production and also how the brand treats their customers pre-sale, during the sale and especially post-sale.
Can you honestly say the build quality of your MY, ride quality and customer service from Tesla is at the same level as Audi?

The pandemic benefited Tesla by slowing down the production of its EV competitors. Yes, Tesla was first to market and has the lead which is a nod to them. But, if the pandemic did not cause supply chain shortages and labor shortages there would have been more competition available. Which is better for everyone as that would keep the prices down across the board.
 
you also don't have Audi shipping cars with missing USB C ports, trunk cover, trunk liners etc. and telling the customer only *after* he/she finds out that this will be "installed by a mobile service tech at a later time" ...
That is true, I understand delivering vehicles without some accessories, but it's all about customer service and communication. I am not saying Tesla is bad, I am just detailing why Teslas are overpriced especially when comparing a $60k Model Y to a $60K luxury SUV. If all you care about is straight line performance, the MY is worth $60k then.
 
you also don't have Audi shipping cars with missing USB C ports, trunk cover, trunk liners etc. and telling the customer only *after* he/she finds out that this will be "installed by a mobile service tech at a later time" ...
They are actually.. RS6 Avant was delivered without the mobile phone box to be retrofitted later and in some cases, no 2nd keyfob on a 130k car


See Roger's post, #11714
 
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1) The Lightning is coming this spring and rolling off the production line as we speak. it is not some hypothetical vehicle
2) The Lightning goes from anywhere in the $50s upwards. a 300+ mile Lightning will cost you mid $70s. Same goes for the R1T. Never mind - a mundane sub compact Model Y AWD runs at $64k+ ... When/ if the Cybertruck comes you bet it'll be more than a Model Y AWD and likely priced in line with Ford/Rivian and Co.

Have you considered the possible problems Ford may encounter trying to ramp up the lightning? I get that Ford has experience in this area, but aren't they building the lightning in a different plant than any of their other products? If they are, that's a whole new crew. I think Ford has already said it'd take them a couple years at least to get to 200,000 lightnings a year. In fact, they've stopped taking reservations on the lightning because demand has far outstripped their ability to build. And then what about sourcing materials? Batteries are in short supply and from what I understand the lightning has a pretty big pack, meaning they are going to need a lot of batteries just for one truck. Tesla has already secured battery supplies by locking in contracts with suppliers and making their own. And with Ford's debt problems would a battery manufacturer rather do business with Tesla, flush with cash and guaranteed demand, or Ford wanting to pay on credit?

And about that lightning price. It's been said already that building an EV is much more expensive than building an ICE vehicle. So I wouldn't expect Ford to stick with their current price structure. Just as Tesla has increased prices, Lucid is now hinting of a price increase. And Rivian recently raised prices on new orders by about $15,000. I would expect Ford to raise their prices also. Oh, and aren't Ford dealerships demanding a huge mark up for the lightning?
 
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Listen, everyone is raising prices for their cars. At least Tesla is not charging $1800 market adjustment appearance package (side pinstripes, door guards and some ScotchGuard on the seats) fee for an Ioniq 5 as many dealers in central jersey do. (and most have 5+ Ioniq 5's on the lot). Is MY more expensive than Ioniq 5 (yeah by about 8-10k) but would I trade it? not sure. It's the small things that make a difference.
 
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Listen, everyone is raising prices for their cars. At least Tesla is not charging $1800 market adjustment appearance package (side pinstripes, door guards and some ScotchGuard on the seats) fee for an Ioniq 5 as many dealers in central jersey do. (and most have 5+ Ioniq 5's on the lot). Is MY more expensive than Ioniq 5 (yeah by about 8-10k) but would I trade it? not sure. It's the small things that make a difference.
yeah but pinstripes add 5hp so..........
 
Can you honestly say the build quality of your MY, ride quality and customer service from Tesla is at the same level as Audi?
Yes. Quality is found in many areas of automobile construction, including software, engineering and drive train. I'm quite satisfied with build quality of my Model Y and I like the firm ride and more comfortable seats. My 2019 Q3 second car (when we had 2 cars) had panel gap issues. How are those direct injection turbo engines going to hold up with carbon build up?

As far as customer service, I've had both horrible and excellent treatment at my local Audi dealer thru several changes in ownership ending with games on sale of my Q3 (which I finally sold elsewhere). Also had good and bad service with the various owners. Audi has also had many support issues with software.
 
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How are those direct injection turbo engines going to hold up with carbon build up?

As far as customer service, I've had both horrible and excellent treatment at my local Audi dealer thru several changes in ownership ending with games on sale of my Q3 (which I finally sold elsewhere). Also had good and bad service with the various owners. Audi has also had many support issues with software.
The direct injection turbo engines are solid, but they will get carbon build up over time just like any other engine. Similar to how an EV battery pack will degrade over time. You probably won't own the car long enough to get to a point where either will have an impact on the performance.
Any engine, motor or battery will have issues over time so not really sure what you're looking for with that.

You're talking about specific dealerships, not the Audi brand itself. I guarantee if an Audi dealership screws around and you notify Audi corporate, they take it serious. Unlike if you call Tesla's customer service.....oh wait they don't have any.
 
$62,900 Model Y AWD LR is sold out to the end of the year, unless you move up in line by spending $12,000 more for FSD option. Who's to say Tesla is wrong? Less expensive AWD SR+ is in the works to help with those wanting lower price. It may get LFP batteries to deal with skyrocketing nickel, cobalt and Manganese costs. Tesla has hedged by lining up LFP production availability.