Latest Price Drop Discussion

[JamesBrown]

We are taking about over 20k in price drops though... Not sure I have seen a gm drop 20k in less than a year.

I certainly haven't paid 20k of my loan yet...

Not sure why anyone would consider anything but a Tesla with the current pricing as long as they can charge at home, or need a truck or something.

I've seen BMW and MB do $40k-50k incentives many many many times. I saw Volvo do a $25k discount on the XC90 Excellence just 4 months after it was released.

Almost every luxury car has huge price swings and horrible depreciation. This is how it has always worked.

Need to stop comparing Tesla to budget commuter cars.

 

[rembaz]

You did both

Do you really believe that an additional new car is good for earth? Funny.

 

[cbkyro]

I think having one thread to express all our dissatisfaction is a good idea.

Btw. My auto wipers don't work.

I got in the car leaving a restaurant yesterday and mine went full blast nonstop on a bright sunny day.

 

[Galve2000]

Tesla's prices change much more erratically and unpredictably compared to the rest of the industry where msrp prices are generally unchanged until the next year.

While I disagree that it is too erratic, it is true that not having model years adds to the uncertainty of the price changes. and this can irk some buyers. you have a similar behavior at the higher end of the luxury market (think Porsche, Ferrari, etc, etc) but Tesla is apply this model to the $45,000 segment and people are not used to this. Add to this the fact that all other things being equal most buyers would pay more for a later model year than an earlier model year (even tho they have the same features/specs/miles) and you do, unofficially, have to deal with model years. again.. it's not so much a problem with small batch luxury cars.. but in the mass market... people start to get uneasy.

Apple doesn't decrease phone prices as they make more of them.

This is absolutely not true.

Not only do they drop the price of the phone over time, they discount the price of the older model once the newer model comes out. if the newest model is too similar to the previous model, they kill off the older model to avoid giving buyers who are more price sensitive a cheaper option. (this happened a few months ago when the iPhone XS was released, the X was killed off b/c they are essentially the same phone with the newer model having a slightly faster processor.)

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 suspect they are not as supply constrained as they like to tout.

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.

actually. AP2 cars rolled off the line the following Monday, but yeah!

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

I fully agree.. the 1st price drop took me by surprise b/c I had no idea the tax credit was such a powerful motivator. subsequent price drops following tax credit phase outs are just par-for-the-course..

I just wish Tesla would sell more Model S and X. but the 3 is just such an amazing value.

 

[Knightshade]

I suspect they are not as supply constrained as they like to tout.

They are though- it's why the powerwall stuff is so backlogged- lack of battery cells

 

[Staceych]

The cars are great and I love the performance model 3, BUT

I bought my M3P+ in January for $73 000 (+taxes, delivery, etc) with FSD, white interior and white multicoat paint.

Today that car costs $62 000

Factor in my additional $1875 rebate and I've lost $9125 in 6 months, plus normal depreciation. Now tell me again about how my car is actually an appreciating asset

I like a lot of things about Tesla, but Musk's slimy sales tactics and compulsive lying are major issues with the company. I bought a Tesla believing in the vision and now I feel like a sucker who bought into a scam. I will definitely try hard to avoid buying a Tesla next time around. It's sad, but the brand has about the same prestige as VW to me at this point.

I bought a 2015 model S for 60k in February of 2018. 24k Miles. Exactly one year later, it’s worth 29k. The older the model the faster the depreciation. I love my car but want an X. I am changing the way I look at Tesla now. It’s not like other cars. I will never buy a used one again. They depreciate faster because of battery life. I am doing 24 month leases from now on. Will be less expensive in the long run.

 

[SeaDoc]

I paid the most for a p3d+ with free lifetime supercharging in August 2018 and still love Tesla. Just completed a 3000 mile road trip to Aspen and the car performed beautifully. Sure, it would be great if Tesla would compensate us for these severe price discounting, like providing us free warranty service or something like that, but... alas. As they continue to streamline production, economies of scale continue to improve and that’s good for Tesla’s survival and we all should want that!

 

[RCMeltzer]

The cars are great and I love the performance model 3, BUT

I bought my M3P+ in January for $73 000 (+taxes, delivery, etc) with FSD, white interior and white multicoat paint.

Today that car costs $62 000

Factor in my additional $1875 rebate and I've lost $9125 in 6 months, plus normal depreciation. Now tell me again about how my car is actually an appreciating asset

I like a lot of things about Tesla, but Musk's slimy sales tactics and compulsive lying are major issues with the company. I bought a Tesla believing in the vision and now I feel like a sucker who bought into a scam. I will definitely try hard to avoid buying a Tesla next time around. It's sad, but the brand has about the same prestige as VW to me at this point.

a car is NEVER an appreciating asset. Who told you that? A Tesla is a computer on wheels. Computer prices ALWAYS go down.

 

[Sg911]

The "appreciating asset" thing is, of course, total BS and Musk should hang his head in shame for ever having said it, except in his case just add it to his tab. That said, I have a hard time identifying with the mentality that says because someone else paid less than you did for the product, you wuz robbed. It's the way of the world. If the product's not worth it to you, don't buy it. If you bought it, it was worth that much to you. Nobody held a gun to your head. (Well, I hope they didn't.)

Elon just needed to qualify that statement . Tesla’s trajectory is autonomy and that will be the tail that wags the dog . Buy FSD $5-7k , and once feature complete ...will be far superior to everything else and start generating income, (per regulatory road approval) therefore appreciated !

 

[kaib]

I'm also like you. I bought my performance with FSD just last month and paid $72k. but unlike you I don't think the car is so great.
It's fine technology but i wouldn't recommend it or dealing with Tesla or Elon musk to my friends or family. It's just one enxiety after the other so
if you already getting one get the very base possible. It's all about range! all the sport features are completely unnecessary to most people. I had a 911s and I thought that will make up for it. No!. And the FSD is decades from being fully operational and is also at this point just a glorified auto pilot.

 

[Knightshade]

a car is NEVER an appreciating asset. Who told you that?

Facts and math?

Cars where supply is less than demand do, indeed, go up in value.

Those situations are very rare (especially for new cars, more common for collectable old ones) but it DOES happen. One example was already cited earlier. IIRC the new Civic R also went through that where they made so few that owners were reselling them for a profit.


Not to say the Model 3 will ever fit that model- but your "never" comment is simply false.

 

[larryrobins]

I guess you haven't purchased many cars? Almost no car is an appreciating asset and most will depreciate at least 15% the moment you drive off the lot. Maybe you haven't purchased something called a cell phone or computer? They depreciate pretty bad too since technology is always improving and production costs get cheaper. Why would a Tesla be any different??? Early adopters for any brand of car pay more since there's pent up demand. When supply approaches demand, there's bound to be a softening of the prices... Enjoy the car....

Well said. There are lots of cars that do appreciate and discerning buyers purchase them all the time. I have a friend who routinely buys cars and sells them for a profit. He bought a Ferrari GTO in the early 80’s for 30k and sold it for 80K. It went on to be worth millions. He recently bought a new Porsche GT3 (last manual tranny) and sold it for a modest profit a few years later. Did I mention he rarely drives these cars and keeps them in far better condition than most new cars. Toothpick clean. If you expect to make money on cars, you’re a collector and an investor, not a driver. Enjoy your Tesla. It’s a great driver’s car.

 

[docdeb27]

Why are Tesla owners the whiniest people on the face of the earth? You bought a car for more than it ever cost before for you so you think Tesla should crawl on it's knees and kiss your ass? They are here to make a profit and stay alive. They do what every company does. Every new computer, cell phone and TV you have bought in your life cost less to but 6 months later. Stop already.

 

[Ccsdk]

@Sutton 3P I have seen posts similar to your for several years now. Every time Tesla decreases the price of an option or the base vehicle, or offer more included features for the same price, some people who paid more get upset. Apparently they would prefer that Tesla never become more cost efficient, allowing the company to offer more for less and be even more competitive compared to other auto manufacturers, and make Teslas more compelling than ever.

Your “hate” is misplaced, in my opinion. But you are welcome to choose a different long range EV next time you are in the market for a vehicle.

In the meantime, I predict that Tesla will still continue to outsell every other EV model, because Tesla simply makes far better EVs. Actually, I should say “far better cars”, regardless of what powers them.

That's an interesting point. To me, Tesla is much like computer technology where the hardware gets cheaper, and faster as the continuous improvements occur. The software eventually will be where the real costs are (FSD, massively trained Neural Networks, terminal features) precisely as much of the computer industry has gone. My bet is that Tesla will eventually be a niche AI company probably outsourcing all hardware ... just like Microsoft and google. Just a bet!

 

[mikegre]

This sort of price disparity happens all the time and has been happening all the time. The only difference now is that modern technology has given us the ability to post our concerns on these public forums.

Try this next time you're flying somewhere. Ask the person sitting next to you what he paid for his ticket.

 

[RCMeltzer]

Facts and math?

Cars where supply is less than demand do, indeed, go up in value.

Those situations are very rare (especially for new cars, more common for collectable old ones) but it DOES happen. One example was already cited earlier. IIRC the new Civic R also went through that where they made so few that owners were reselling them for a profit.


Not to say the Model 3 will ever fit that model- but your "never" comment is simply false.

You are correct. Classics, Ferrari's, older Jags and Mustangs do indeed appreciate.

 

[CarolinaBMXers]

Just for these reasons is why i will never buy a brand new car.... not a chevy, nor a ferrari..... buy a year or 3 old (or more) and get the true value....let the suckers that buy new take the hit.....i bought a 3yr old S... Perfect car, perfect clean, everyone still thinks its a new car...

 

[psychojr]

Quit yer Bitching about price. My god. Should I hate Amazon cause people got their crap cheaper on Prime day. It is just REALITY. You agreed to pay the price that you paid. You have nobody to bitch at but yourself

Dammit. I paid $50 for an echo dot and then it went to $25 on prime day. I got SCREWED! That damn criminal Bezos! Ought to be locked up.

 

[Zeronet]

Lol. Ya it sucks to know musk basically harvested your tax credit then lowered the price by 9k more after that. But it is what it is.

Who do you think that tax credit was for anyway? It was to stimulate the development of EVs. That not only is an incentive for the buyer, but more for the manufacturer to be able to charge somewhat more on their first experimental cars. After all, they are risking bankruptcy if they fail. Would you rather have bought an EV where they are not selling enough to be able to eliminate the tax credit? Go and test drive the Bolt sometime (it will be cheaper after its tax credit expires), or any other long-range EV that you can actually find available.

The Model 3 will ultimately be a classic vehicle, the first mass-market EV. I am going to enjoy it as long as it holds together; along with my still-incredible, can drive anywhere, 22 year-old, last year of manufacture, Manual Transmission 4 Runner.

 

[ckharrison10]

I guess you haven't purchased many cars? Almost no car is an appreciating asset and most will depreciate at least 15% the moment you drive off the lot.

Elon has explicitly said Teslas will become an appreciating asset. I experienced the same $10k drop in value a couple months after my delivery as OP. It's a radical paradigm shift that I was actively led to believe would not occur. From the beginning, the revolutionary thing was that since Tesla didn't follow the dealership model, they were supposed to be able to set a consistent, non-negotiable price. When Elon starts defending the fluctuations by saying other manufacturers do the same thing, I'm sorry, but that's not good enough. It was supposed to be better than that, not more of the same.

Maybe you haven't purchased something called a cell phone or computer? They depreciate pretty bad too since technology is always improving and production costs get cheaper. Why would a Tesla be any different???

Invalid comparison. Cell phones and computers are expected to be upgraded every year or two at most, cars are not. Until I picked up my M3 in December, I was driving a 2005 Ford Taurus that my family bought almost new. A car purchase, to me, is a very major decision that I expect to provide value to me for the next decade. Tesla's cars are the most technologically advanced vehicles out there, but they first and foremost still are cars, and there's a lot of expectations for longevity that go along with that.

Early adopters for any brand of car pay more since there's pent up demand. When supply approaches demand, there's bound to be a softening of the prices... Enjoy the car....

The early adopter argument is dead. Tesla has been building cars for 11 years (Roadster) and have been mass producing for over half that time. The Model 3 is their 4th vehicle, and even that has been rolling out for 2 years now, which should be plenty of time to figure out your costs and supply chain. $10k variation on a $60k car is outlandish. Tesla isn't a scrappy startup anymore, it's a massive experienced corporation playing in the same market cap league as Ford and GM.