Latest Price Drop Discussion

[Sutton 3P]

So these type of threads get "moderated" into obscurity? Good to know I'm on a heavily censored platform - I was wondering why very little that is negative seems to show in the model 3 forum.

 

[tfraley]

LOL!

You must know of some planned new EV models that I haven't heard of yet that are going to compete with Tesla on features, performance and price. The only true competition for Tesla so far is from fossil powered cars and they can only compete on price, not on features and performance. And that's why Tesla has been lowering prices. Most people can't spend $60,000 on a car. Tesla wants everyone to be able to own a compelling EV.

You are living in an alternate reality if you think the fossil manufacturers are going to be releasing competitive EVs as soon as next year. I wish it were true, but it's not.

Lol your funny.. "alternate reality"
It's not whether it will be competitive EV.
It will be the fact they're will be tons of them good or bad. either way it will nibble at their sales.

This might be all a moot point as Musk has tweeted they might stop selling once full auto pilot is solid and or at least sell the cars for more. To me this was all a beta test for Musk in the road to his own Taxi service

 

[JamesBrown]

Of course there is one. You just have to think little bit harder. Hint: what is the price development of a new iPhone for next 12months?

State your point or please leave the conversation. It is really annoying to make people guess what your point it and then tell them they are wrong.

 

[rembaz]

I thought I have made it already obvious.
Apple is selling new iPhones for the same price till the new model comes.

Of course within the year you can get it little bit cheaper.

So the customer knows exactly what to expect. I think people like such “security”.

 

[Daniel in SD]

Of course there is one. You just have to think little bit harder. Hint: what is the price development of a new iPhone for next 12months?

I'm pretty sure Apple does lower the price of the current iPhone over the course of the year. They just hide it by giving discounts to carriers who then give discounted service plans or other gimmicks to boost sales. For example, Verizon has a buy one get one free for the iPhone XR right now (I'm sure they didn't have that last September!). Otherwise, how would Apple ever sell enough phones in the months before the new model comes out?

 

[liuping]

I'm pretty sure Apple does lower the price of the current iPhone over the course of the year. They just hide it by giving discounts to carriers who then give discounted service plans or other gimmicks to boost sales. For example, Verizon has a buy one get one free for the iPhone XR right now (I'm sure they didn't have that last September!). Otherwise, how would Apple ever sell enough phones in the months before the new model comes out?

Exactly. At T-Mobile you don't even need buy one, it's free when you switch or add a line (plus trading a old phone):

The XR is $749 is you buy it form apple.

 

[JamesBrown]

I thought I have made it already obvious.
Apple is selling new iPhones for the same price till the new model comes.

Of course within the year you can get it little bit cheaper.

So the customer knows exactly what to expect. I think people like such “security”.

My wife iPhone 7+ was $900. My iPhone Xs Max was $250 with a Sprint promotion. I paid less for my brand new iPhone than her 2 year old iPhone is even worth. Apple gives carrier discounts, that pass through. Either way both will have 70%+ depreciation after a couple years. There is absolutely zero security whatsoever. They are all depreciating assets.

 

[jjrandorin]

So these type of threads get "moderated" into obscurity? Good to know I'm on a heavily censored platform - I was wondering why very little that is negative seems to show in the model 3 forum.

Following my personal policy of stating "why" i disagree with something posted if I click that button, I dont agree at all that merging a bunch of threads with the same general subject is "heavy moderating".

 

[vickh]

this is the negative side of tesla's price transparency.

I don't think they'll reduce SR price below 35K though. It seems like a loss leader. I just hope the upgrade price drops for us "early adopters", like the S 60 uncorking did.

 

[vickh]

My wife iPhone 7+ was $900. My iPhone Xs Max was $250 with a Sprint promotion. I paid less for my brand new iPhone than her 2 year old iPhone is even worth. Apple gives carrier discounts, that pass through. Either way both will have 70%+ depreciation after a couple years. There is absolutely zero security whatsoever. They are all depreciating assets.

median new car prices have been going up though.

 

[Daniel in SD]

median new car prices have been going up though.

Only because people are buying fancier cars. Compare a $25k car now to one 20 years ago. You get a better car now for the same price (and of course it's actually way less if you account for inflation).

 

[Lindamon]

Hi, new member here, and first post, though I’ve been researching (lurking) here for a while now. I was very close to pulling the trigger on a new X last month. After the quarterly results were announced I realized I’d be better off probably waiting for the end of the next quarter, figuring there would be some incentives, or more likely possibly good deals on inventory cars.

I was looking at the Performance model, but was unwilling to spring 20K for ludicrous. I could afford it, but the price seemed way too much for the return. Not knocking others who feel differently, if it’s worth it to you, then that’s exactly what it should cost.

It was killing me to wait, even though I’m older, I felt like a kid, and wanted the shiny new toy! The test drive I did was like no other car I’ve ever driven, and I’ve driven a few. As I said, I’m older, but I could live another 20 or 30 years, many in my family have. Or I could drop dead tomorrow. I wanted that car, because I knew I am going to love driving it around like no other car I’ve ever owned, and every day without it was one less I would have to do that.

Then, when I saw they dropped the upcharge for ludicrous on the Performance models, and also made pearl white the stock color, well, they had me. So they snagged another buyer. How many others like me I don’t know, but I’ll bet more than a few. Good on you Tesla.

At the end of the quarter, maybe another price drop. Next January, maybe autopilot is included with no upcharge. Who knows? With any new car, I expect I’m tossing away 20-30% easily as I drive off the lot. Be smarter to by used, or wait for the end of the quarter and buy an inventory deal.

But I can earn more money, or my investments can earn more money, given time, and I can likely get back what I’ve lost.

I can’t get back the time, That’s the most valuable commodity I have, because it can’t be replaced, and I don’t know how much I’ve got. So the sooner I’m driving a Tesla, the better!

Do I feel the pain of those who bought earlier, and I got a better deal? Of course! I bought a used aircraft (for about the price of the new X) at the height of the dotcom bubble, before 911. Thought I got a pretty good deal on a used aircraft. I sold it 6 years later, at a loss of about 50%. No real depreciation, as it was a 25 year old aircraft, but now the market for aircraft, used and new, had changed drastically, especially for light twins. It sucks. I was really pissed, but I’ve earned back the money and more, since then. And I had the enjoyment of flying a nice twin all around the country for years, avoiding the cattle cars of modern air travel.

Priceless!

Can’t wait to drive my new Tesla! Life is short. Don’t be reckless with money, but don’t suffer it’s loss too much, if you spend it on doing things you enjoy, or even love!

Happy motoring!

 

[jebinc]

Hi, new member here, and first post, though I’ve been researching (lurking) here for a while now. I was very close to pulling the trigger on a new X last month. After the quarterly results were announced I realized I’d be better off probably waiting for the end of the next quarter, figuring there would be some incentives, or more likely possibly good deals on inventory cars.

I was looking at the Performance model, but was unwilling to spring 20K for ludicrous. I could afford it, but the price seemed way too much for the return. Not knocking others who feel differently, if it’s worth it to you, then that’s exactly what it should cost.

It was killing me to wait, even though I’m older, I felt like a kid, and wanted the shiny new toy! The test drive I did was like no other car I’ve ever driven, and I’ve driven a few. As I said, I’m older, but I could live another 20 or 30 years, many in my family have. Or I could drop dead tomorrow. I wanted that car, because I knew I am going to love driving it around like no other car I’ve ever owned, and every day without it was one less I would have to do that.

Then, when I saw they dropped the upcharge for ludicrous on the Performance models, and also made pearl white the stock color, well, they had me. So they snagged another buyer. How many others like me I don’t know, but I’ll bet more than a few. Good on you Tesla.

At the end of the quarter, maybe another price drop. Next January, maybe autopilot is included with no upcharge. Who knows? With any new car, I expect I’m tossing away 20-30% easily as I drive off the lot. Be smarter to by used, or wait for the end of the quarter and buy an inventory deal.

But I can earn more money, or my investments can earn more money, given time, and I can likely get back what I’ve lost.

I can’t get back the time, That’s the most valuable commodity I have, because it can’t be replaced, and I don’t know how much I’ve got. So the sooner I’m driving a Tesla, the better!

Do I feel the pain of those who bought earlier, and I got a better deal? Of course! I bought a used aircraft (for about the price of the new X) at the height of the dotcom bubble, before 911. Thought I got a pretty good deal on a used aircraft. I sold it 6 years later, at a loss of about 50%. No real depreciation, as it was a 25 year old aircraft, but now the market for aircraft, used and new, had changed drastically, especially for light twins. It sucks. I was really pissed, but I’ve earned back the money and more, since then. And I had the enjoyment of flying a nice twin all around the country for years, avoiding the cattle cars of modern air travel.

Priceless!

Can’t wait to drive my new Tesla! Life is short. Don’t be reckless with money, but don’t suffer it’s loss too much, if you spend it on doing things you enjoy, or even love!

Happy motoring!

Welcome to our Happy Place and good for you!!!

As you know, "You can always make (or save) more money, but you can't make more time…"

Yeah, like you, I'm in that maybe 25-30 years more age as well - but could drop dead tonight; who knows.... Until then, I will enjoy my shiny new Tesla!

 

[raptor5244]

What other public tech or new company decreases prices with increases in efficiencies? Apple doesn't decrease phone prices as they make more of them. People that purchase items via Kickstarter campaigns pay less the earlier they get in. While this isn't apples to apples, it's odd that a $100-200k future robi taxi would be coming down in price. As a shareholder, I also concerned that margin's are potentially going down with lower sales prices.

I am still trying to wrap my head around the economics of this as well. If Tesla is selling these Model 3s as fast as they can make them then why are they reducing prices? This just seems to defy the fundamental laws of supply and demand. I wonder if they thought to themselves that the majority of folks that wanted the tax credit would have bought already and now we need cut prices even further to help keep demand up. But when does this end? You can't keep cutting prices forever. They just made a $5k price cut on the 3P, $2k on the AWD and $1k on the SR+ and one of the most popular paint colors (pearl white) that raked in $1500 a car is free of charge. Soon, white interior will be $500 or free, no up-charge for any paint color and prices will drop another few grand in January.

Tesla is used to the high end of the market ($80k+) as a niche product but you can tell they are still figuring out the lower end of the market and how to be a mass market car manufacturer. They have built a fantastic car that is a huge hit. They should focus on build quality, customer service, building more service centers, adding more Superchargers, adding more options (interior colors, wheels options, paint colors, etc.) so that they can capture as much of the EV market as possible before GM, Ford, Toyota, Honda, BMW, VW/Audi, etc. show up in force with EVs.

I am not sure why everything has to be about the fact our cars can be robo-taxis some day. I don't know how many of us are dropping $40k+ on a robo-taxi. My version of a robo-taxi would be based on a $3,500 Chevy Spark, because you know after a week out in the wild the Tesla would be destroyed by the robo-taxi ride sharing public.

 

[thors_hammer]

Not much to add to what has been already said, but I took delivery of my white P3D June 29th. Barely two weeks later it sucks to get hit with the double whammy of price drops, resulting in my config being $6500 cheaper ($4675 if you include the extra tax credit I got) plus taxes.

Still, I'm very happy with the car and I don't plan on selling it ever, it just would've been nice to have the extra $5k or have had a bit more time for the gas savings to offset

 

[thors_hammer]

I am still trying to wrap my head around the economics of this as well. If Tesla is selling these Model 3s as fast as they can make them then why are they reducing prices? This just seems to defy the fundamental laws of supply and demand. I wonder if they thought to themselves that the majority of folks that wanted the tax credit would have bought already and now we need cut prices even further to help keep demand up. But when does this end? You can't keep cutting prices forever. They just made a $5k price cut on the 3P, $2k on the AWD and $1k on the SR+ and one of the most popular paint colors (pearl white) that raked in $1500 a car is free of charge. Soon, white interior will be $500 or free, no up-charge for any paint color and prices will drop another few grand in January.

Tesla is used to the high end of the market ($80k+) as a niche product but you can tell they are still figuring out the lower end of the market and how to be a mass market car manufacturer. They have built a fantastic car that is a huge hit. They should focus on build quality, customer service, building more service centers, adding more Superchargers, adding more options (interior colors, wheels options, paint colors, etc.) so that they can capture as much of the EV market as possible before GM, Ford, Toyota, Honda, BMW, VW/Audi, etc. show up in force with EVs.

I am not sure why everything has to be about the fact our cars can be robo-taxis some day. I don't know how many of us are dropping $40k+ on a robo-taxi. My version of a robo-taxi would be based on a $3,500 Chevy Spark, because you know after a week out in the wild the Tesla would be destroyed by the robo-taxi ride sharing public.

To the question "what other public tech company reduces prices", one that comes to mind is the video game console market. As they realize efficiencies with newer, more efficient chips, they often release a cheaper 'lite' model. We all know our Teslas are basically video game consoles these days.

With the market's constant need to see 'growth' and the multitude of shorts and negative press, my guess is the price drops are either to prevent there from ever being any truth to the 'no demand' claims or... they always intended to sell them at the lower price (which they probably haven't reached yet) and used the tax credits and early adopter demand to sell them at a higher price for additional profit.

 

[MXWing]

Those S/X owners who took delivery of a AP1 car on Friday when AP2 cars getting rolled out on Saturday are rolling over in their graves right now.

 

[EinSV]

As luck would have it, a solution has presented itself for those folks who get upset by Tesla's fast pace of innovation and cost reductions.

The new 2020 Chevy Bolt does not have any significant improvements from the previous version. Why GM Fails to Impress with Official 2020 Chevy Bolt EV Updates and Changes | Torque News It's MSRP is also the same.

And while dealers may heavily discount them to get them off the lots, that shouldn't matter since it seems that some people only care if the sticker price is changed. Which, thankfully, it has not!

So if you want to buy from someone who doesn't innovate, doesn't improve much and doesn't constantly give you more for the money, GM is right for you - buy a Bolt.

That is the wonderful thing about the free market -- something for everyone!

 

[Daniel in SD]

As luck would have it, a solution has presented itself for those folks who get upset by Tesla's fast pace of innovation and cost reductions.

The new 2020 Chevy Bolt does not have any significant improvements from the previous version. Why GM Fails to Impress with Official 2020 Chevy Bolt EV Updates and Changes | Torque News It's MSRP is also the same.

And while dealers may heavily discount them to get them off the lots, that shouldn't matter since it seems that some people only care if the sticker price is changed. Which, thankfully, it has not!

So if you want to buy from someone who doesn't innovate, doesn't improve much and doesn't constantly give you more for the money, GM is right for you - buy a Bolt.

That is the wonderful thing about the free market -- something for everyone!

Yep, if the MSRP doesn't go down then the price hasn't really dropped.

I am still trying to wrap my head around the economics of this as well. If Tesla is selling these Model 3s as fast as they can make them then why are they reducing prices? This just seems to defy the fundamental laws of supply and demand.

You just answered your own question. They weren't selling them as fast as they could make them at the old price.

 

[raptor5244]

You just answered your own question. They weren't selling them as fast as they could make them at the old price

I did my part and bought two of them last quarter.