Latest Price Drop Discussion

[Artax]

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.

On top of that, the EXTREMELY POOR customer service... refusing to fix quality issues and putting you on 'ignore' when you pressure them (ever try to ask for next level escalation?).

When other auto makers change price, they accompany the change with feature function changes so they can at least justify the change; you very seldom see price drops. Yes, of course you will see price variance from dealers as they try to move inventory and sales staff try to make their numbers (end of month/quarter is always best time to buy), but you won't see changes in MSRP as you do with Tesla.

As much as I hate car dealers, one thing they do is buffer you from the whims of the auto maker. MSRP is stable, and service levels are predictable. Note that customer service got much worse with Tesla when Elon put out the directive to cut costs; that directive translated to 'pass costs on to the customer'.

I am not only a 'Tesla never again', I actively promote 'don't buy Tesla' to other people. 2020 and 2021 will see the intro of other makers into the long range EV foray. Wait a year or two when choices will provide better alternatives, or at the very least, will force Tesla to change the way the treat customers. And for those that argue no-one can touch Tesla s/w... sorry, I don't trust Tesla s/w with a 10' pole; it fails or aborts so often (yes, in supported freeway on-ramp to off ramp) I pretty much don't use it, which translates to $7,500 for FSD down the drain.

 

[wcorey]

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 feel your pain! Seriously! I didn't buy the most expensive version, largely because for the extra $10k-$15k I didn't need a sugar high that badly. But anyone who bought a model 3 is in the same boat, whether they bought the LR RWD or AWD or SR bare bones, they lost money. I bought a Prius Plugin Advanced for $45k. When Chevy came out with the Volt it was $10,000 less so Toyota dropped the price of the Prius Plugin Advanced and I instantly lost $10,000.
On the 'appreciating asset", that is when FSD is GA and they stop making the Model 3 or double it's price because they aren't looking for affluent genXers, they are looking for cab companies, the new entrants into the ride for hire crowd. I doubt you'd want to offer up your P3D to strangers to trash. So, really, what did you buy it for? Seriously, why did you buy it? I suspect the reason you bought it is still valid and it successfully scratches that itch. Neither the price of gold, real estate, stock market is guaranteed to go up. That doesn't mean, however, it doesn't bite when you lose money on something over night. Cars generally have never been appreciating assets. One final thought. When the world is full of cars for hire not 10 mins away, who, in their right mind, would ever buy another car. That is the definition of disruptive technology.

 

[jgs]

Elon has explicitly said...

Sadly, experienced Elon-watchers have figured out that Elon's comments are not something you can take to the bank, and apply a hefty discount.

since Tesla didn't follow the dealership model, they were supposed to be able to set a consistent, non-negotiable price.

And they do at any given time. But just because they don't have dealerships, doesn't mean they're immune to market forces.

 

[M+K.Reeser]

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.

Sour grapes. No one makes money buying a new car. I would have thought you knew that already. First car?

 

[batthis]

If I bought the car months ago, I would agree... but I’m one of the lucky ones that bought it less than a month ago. It just hurts knowing if I procrastinated a couple of weeks...

 

[lmorda]

"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 completely agree with this 100%. It's the reason why I don't go around telling everyone I have a Tesla, why I don't wear the T-shirts or retweet their tweets. I don't ever try to talk people into buying one too. I don't feel totally in love with my car because I felt like a sucker to (for one of this other sales tactics).

"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."

Unfortunately I don't think I could every buy another car after buying this one. I love this car so much it makes me not able to buy another car brand ever again. Which is exactly why he keeps repeating his bullshit ways...

 

[ydw1988913]

Now tell me again about how my car is actually an appreciating asset

Who told you a car is an appreciating asset?! 99.99% of the time its not

 

[dk10438]

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.

you really believed a car would be an appreciating asset? Elon says a lot of things that should be met with healthy skepticism... When did you take delivery of the car? December? As far as I know, he made the comment about appreciating assets in April. That really factored into your decision to buy the car? Call me a skeptic...

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.

My point was that all technology related items depreciate sharply and therefore prices are fluid. I'll concede that a car is a major purchase but how is the depreciation affecting it's inherent value to you or the OP? Don't you still derive the same level of enjoyment and utility that you did before the price drop? I have no doubt that the car will last 10 years. And for most cars, 10 years will result in 80 percent or more depreciation. Luxury cars probably more...

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.

Early adopter in that you received one of the earlier cars, ie a car when supply did not reach equilibrium with demand. I'm not referring to the company. When I went to Porsche to put my name on the list, they let me know that they fully expected the car to go 10-20k over MSRP. In 2 years when supply ramps up or demand wanes, those cars are going to sell a lot closer to MSRP. You think a Taycan owner is going to bitch that his car "depreciated" an extra 10-20k because he was the first one to own one on his block? Kinda doubt it..

And I would argue that Tesla is a nascent company and they clearly haven't figured out the supply chain, large scale production, customer service etc. There's a reason why only a relative few countries can actually manufacture cars. It's because it's extremely complex. I'd also argue that Tesla is still a scrappy start up. Elon's/Tesla's strategy is a little incoherent (maybe a lot) and looks more like trial and error to me. They'd do better if they just hired a seasoned CEO to manage the company but that's JMHO.

 

[claudelaval]

While I don't want to downplay your right to be frustrated with price changes, just make sure you don't buy any traditional luxury car next time -- there is ALWAYS going to be someone who paid $10,000 less for his car. In the same configuration. Same color. Purchased on the same day.

there is ALWAYS going to be someone who paid 10K less for his car? I don't think so. This is deplorable and future customers will be well aware from now on. Wait ti'll MB or BMW enter the EV market full speed ahead those who got burn by Tesla will remember. You will never see thing like that with Lexus...

 

[ckharrison10]

Who told you a car is an appreciating asset?! 99.99% of the time its not

The CEO of the company. Repeatedly.

Bloomberg - Are you a robot?

 

[Tezla1]

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 think the problem here is not your car or Tesla, or even Musk. I’m sorry to say, but I think it’s you.

It’s clear you’re feeling mental turmoil and anguish due to the circumstances surrounding your Tesla purchase price.

You may even be getting made fun of or ridiculed by friends/family - “oh look ur car is now 10k less haha, ur dumb, etc “

This all is leading to a outwardly negative reaction towards your Tesla.

Your reaction, while based in logic, is not normal. You feel cheated, lied to and abused, in a way. We can tell you feel very strongly this way based on your multiple posts.

I would wager that you feel similar about other issues in your personal life.

I think speaking to a therapist to work through these things is the only way for you to clear this type of negativity from your thinking.

Because, I don’t think the problem is with the car.

Sometimes, in life, things don’t go exactly
how we foresee or how we want them to go. This is normal and shouldn’t cause mental turmoil and anguish. We shouldn’t constantly compare ourselves with our peer to see whose ahead or behind. We shouldn’t jump to blame someone or some entity right away when things don’t go as planned. This is clearly not healthy, Normal mental behavior.

As with all issues in life, problems and solutions both lie in ourself.

I would take a step back. Give gratitude for things you are fortunate enough to afford.

Try to become peaceful and happy with your current circumstances - if you do this, I promise it won’t matter how much lower the price of a car is.

 

[claudelaval]

Tesla's unlike ICE vehicles are mostly new tech and high tech devices. All devices like this have a history of dropping in price. I havent ever tried to figure out what my 2015 85D which cost like $95K would cost today. Just thrilled how it compared to other vehicles at the time and how at 100K miles is still drives the way it did when we took it home. If you had looked at Tesla history you would know that the price of the vehicles either drop over time or the cars get more capability for the same price. If you want a car where every year the manufacturer raises the price then I suggest going with a traditional manufacturer.

manufacturer raises the price every year? Tesla used to be like that. Now if they play with the prices downward customers will start to wait and sales will suffer...

 

[RCMeltzer]

why not just enjoy the wonderfulness of the car???

 

[Glamisduner]

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.

On what $200k cars?

Thinking about selling mine before price drops put me farther into the hole. Just go back to an ice for now, because at least it won't drop the price of another vehicle in months. I know the price drops can't continue right? heard that one before!

maybe things will stabilize eventually... Nearly 30% drop in less that 8 months is hard to swallow for a major purchase (this isn't a rebate or fire sale) but I know most people in the forum don't care. For me it was a real big purchase, perhaps Tesla ownership just isn't for me. Yes I know cars depreciate, but this is just insaine!

I'm not really going to sell it, but seriously wtf. Death by paper cuts.

 

[tuoncan]

On the positive note, since our Tesla is cheaper now, should our insurance rate be going down. Damn insurance company stealing our money. How come no one complains about their insurance company ripping them off?

 

[Accentcreate]

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.

We used to call that a 'First World problem'. Now it's just an early adopter's problem. Be thankful you have a great car that keeps the air clean and that you are a trailblazer, paving the way for the next generation of clean transport.
Sour grapes are for vinegar.

 

[JamesBrown]

On what $200k cars?

Thinking about selling mine before price drops put me farther into the hole. Just go back to an ice for now, because at least it won't drop the price of another vehicle in months. I know the price drops can't continue right? heard that one before!

maybe things will stabilize eventually... Nearly 30% drop in less that 8 months is hard to swallow for a major purchase (this isn't a rebate or fire sale) but I know most people in the forum don't care. For me it was a real big purchase, perhaps Tesla ownership just isn't for me. Yes I know cars depreciate, but this is just insaine!

I'm not really going to sell it, but seriously wtf. Death by paper cuts.

On similar priced cars to the S and X (80-120k). It is very common to see 30-40k incentives on a 7 series or S class.

If you want something similar to compare the 3 to, you should look at the Nissan Leaf. They have shown an average depreciation of 70% over 3 years. As a 30k car, Nissan has been continually offering $10-12k incentives every year. That is up to 35% drop from the day you buy it, not even 8 months later. The projected residual set by Nissan is 38% after incentives. This means the $30k Leaf S is only worth $9k after 3 years.

 

[Niroc]

I bought a sr + 6 weeks ago. This was before the Fed tax was cut in half. So very little drop difference for me. That being said I do think that this is a tactical mistake from Tesla. They are pissing off their customer base which is their main marketing tool.

I am surprised by the cut in price since the profit margin is already very slim. It may mean that purchases are way down after fed tax cut was slashed. I don’t expect this price to last a long time.

I am planning on keeping the car for a very long time. So I am not fretting it. But I am concerned about decisions from Tesla. I want them to prosper and grow

 

[Octo]

I bought a sr + 6 weeks ago. This was before the Fed tax was cut in half. So very little drop difference for me. That being said I do think that this is a tactical mistake from Tesla. They are pissing off their customer base which is their main marketing tool.

I am surprised by the cut in price since the profit margin is already very slim. It may mean that purchases are way down after fed tax cut was slashed. I don’t expect this price to last a long time.

I am planning on keeping the car for a very long time. So I am not fretting it. But I am concerned about decisions from Tesla. I want them to prosper and grow

Yeah, that’s my main concern. I don’t really care about a virtual, imaginary “loss” (P3 last month so ~$3k) as much as I’m worried that this isn’t a good sign for the health of their business. I’d wait until they release their revenue and outlook for the next quarter before buying. I already had doubts when I bought my P3 but now I’m worried that Tesla truly has a demand problem going forward.

 

[MoHazee4]

Go to one dealership and get a price. Now go to another...

They prob vary within a reasonable range. Less than $5,000 (average). Just a guess though.