Latest Price Drop Discussion

[Daniel in SD]

This comes back to what I was addressing in your first post, which is that you don’t seem to understand basic finance concepts like in this case subsidization of phone prices by subscription contracts. In the example cited in this thread the iPhone is advertised as $0. I hope you can appreciate that Apple isn’t actually giving away their phone. If you pay the same price for your unbundled cell plan as for the bundled one then you’re doing it wrong. I thought this is common knowledge...

If you bother to read my post, what I said is that Apple doesn’t wildly vary their profit margins day to day and if they did they would destroy their brand, as Tesla is doing. So what exactly is your point? Are you claiming that Apple is wildly varying their profit margins day to day?

The point is that Apple changes the amount they charge carriers for the phones and then the carriers pass those savings on to consumers. Notice that you can never get these killer deals from carriers right when the new phone comes out.

 

[Black Dahlia]

I’m trying to prove that your concern that people will defile a Tesla are redundant because some Teslas come defiled (by your standards) from the factory.

No, defiling comes from the origination of a product (I.E.: Mass produced Chinese body panels/kits and wheels). But you know what, you're right... Our cars have the worst reputation for shitty quality right? Screw buying high end top-tier parts. Forget parking my Performance for the past 3 weeks (I literally haven't drove it except once to work) because I wanted to protect my Model 3 with a nice PPF wrap over the entire car but was saving till after my vacation overseas next week.

I'll just drive it and let it naturally fall apart since it's a cheap $35k (2020 projection) car with a Tesla badge that I overpaid for because I was an idiot to assume Elon would hold his car's value above a certain ceiling and not price it comparable to a Honda Civic Si, Honda Civic CTRs are 50k... More expensive than a Model 3 smh.

**** it.

 

[focher]

Welp, this thread went off the rails.

Gonna be more price drops. Accept it. Don’t accept it. Tilt at all the windmills you want.

 

[Octo]

I don’t have a problem with the “spoiler”.

I think it’s cute.

I just don’t kid myself thinking it makes a difference. It’s a cosmetic item that is like other items that the other poster considers a sacrilege to do to a car and if the car gets cheaper, people with no money and terrible taste will apparently visually ruin the car. This is not my opinion.

 

[DrEvil]

This comes back to what I was addressing in your first post, which is that you don’t seem to understand basic finance concepts like in this case subsidization of phone prices by subscription contracts. In the example cited in this thread the iPhone is advertised as $0. I hope you can appreciate that Apple isn’t actually giving away their phone. If you pay the same price for your unbundled cell plan as for the bundled one then you’re doing it wrong. I thought this is common knowledge...

If you bother to read my post, what I said is that Apple doesn’t wildly vary their profit margins day to day and if they did they would destroy their brand, as Tesla is doing. So what exactly is your point? Are you claiming that Apple is wildly varying their profit margins day to day?

Tesla's "liar in chief" says Tesla's mission is “to accelerate the world's transition to sustainable energy.” If the company goes bankrupt and stop making vehicles then they will have failed as far as their role as of 2019. Assuming Musk is running the show, he is trying to get enough adoption of EVs (both cars and sustainable energy to power those cars, ie PV panels and Powerwalls which is also Tesla BTW) to force the market to acknowledge that it is both doable and financially viable.

I am not a CEO nor did I attend business school. What I do know is they're doing something so well that CNBC is going out of their way to make a full on show of lies to FUD the hell out of EVs. I will assume the board at TESLA knows better than I at how to best keep the company alive while having 100% YOY growth. When was the last time Apple saw 100% YOY growth?

If Tesla goes bankrupt your Tesla will be worth even less as the warranty would be meaningless unless it's acquired by another company. Right now the company has room to grow, and grow insanely, while the other car manufacturers are busy standing at the water cooler. If Tesla needs to drop the price to keep the demand high then that is what they will do.

Conversely, they could keep the price the same and spam all the media outlets with silly commercials and open up dealer networks to artificially drive up the cost of the vehicle. So there, you would have your stable price and all the glutinous waste that comes with it.

 

[Black Dahlia]

I don’t have a problem with the “spoiler”.

I think it’s cute.

I just don’t kid myself thinking it makes a difference. It’s a cosmetic item that is like other items that the other poster considers a sacrilege to do to a car and if the car gets cheaper, people with no money and terrible taste will apparently visually ruin the car. This is not my opinion.

You've totally twisted my words around haha. As I said, the factory spoiler is nice. I love mine. There's already several replicas out there, held the same way, but the fitment and proportions of them are horrible. They're just a taste of what's to come. Unplugged Performance makes some quality nice ones... Although something about them has me thinking their generic China parts... But I have faith in most of their stuff.

 

[liquid_celica]

This comes back to what I was addressing in your first post, which is that you don’t seem to understand basic finance concepts like in this case subsidization of phone prices by subscription contracts. In the example cited in this thread the iPhone is advertised as $0. I hope you can appreciate that Apple isn’t actually giving away their phone. If you pay the same price for your unbundled cell plan as for the bundled one then you’re doing it wrong. I thought this is common knowledge...

If you bother to read my post, what I said is that Apple doesn’t wildly vary their profit margins day to day and if they did they would destroy their brand, as Tesla is doing. So what exactly is your point? Are you claiming that Apple is wildly varying their profit margins day to day?

Uh, I did read the whole post. Yes, Apple DOES vary the profit margins on the phones? Tesla does not do it day to day because this drop was 1 time and they continually scale their business to lower operating cost. Are you talking about revenue? Cause you keep mentioning profit. Maybe I'll draw out your example for you:

Material cost of an iphone: The cost to produce the iPhone X 64gb takes roughly $370.25
overhead & operations: 370.25 x 0.25 (lets just assume 25% on each phone).
total cost of phone: $462.81
---------------------------------------------------------
MSRP: $1200
- total cost of phone $462.81
---------------------------------------
profit = $737.18

3 months later:

total cost of phone: $462.81
MSRP w/ new crazy promo on their website (no carrier contract): $800
_________________________
profit = $337.78

So yeah, i don't get what you're trying to pull here? You bring up subsidization through contracts as if its a thing in 2019. Literally every major US carrier are contract free now. Notice how when Verizon gets an iphone deal... they all get an iphone deal. You are literally using a 2005 dated example to try and prove a point. Apple is known to have the largest profit margins and can slash price at a moments notice to meet demand or scratch an itch. Like we're telling you, you're fine if one company does it, but if tesla does it... you're not too happy about it.

I mean, economics anyone?

 

[happyzod]

Just putting down some real numbers to combat the ridiculous hyperbole.

I paid 71,500 for my car last august, before fees. That means I could receive an 7500 tax credit.

Exact same car is 56,990, a year later. Tax credit is now $1875. This car also includes basic autopilot that mine did not. I paid 7k for EAP after the fact. Basic AP is valued at what, 2k?

So I paid 71,500 - 5000 (PUP refund) - 7500 = 59,000.
Now I would pay 56,990 - 2k (ap adjustment) - 1875 = 53,115.

This is a net price change of under $6k, for buying the same exact car. But do go on with the complaints of losing 10k overnight. Then go ahead and forget about all the free new features you have received since delivery, features that you would NEVER receive, and certainly not for free, if you make good on your silly claims that you will go buy a stupid Lexus.


What? More like "the housing market is still going down so if that is something you can't handle you should rent". I still want proof of your claim that you paid 72,500 in January. Kind seems like you are just making stuff up.

Predatory? Wow man, that's nuts.

Go buy any car and check again in 6 months. The price will have dropped dramatically. You are lying if you think otherwise. ​

Basic AP was 3k when they offered to sell it. In addition, they are offering the 2k pearl white option for free now. Add those up and you get a 9k loss for buying 7 months early. This not NOT including regular run of the mill depreciation. Remember how they pushed you to buy the car or it will be too late too claim the tax credit?

 

[Nocturnal]

Basic AP was 3k when they offered to sell it. In addition, they are offering the 2k pearl white option for free now. Add those up and you get a 9k loss for buying 7 months early. This not NOT including regular run of the mill depreciation. Remember how they pushed you to buy the car or it will be too late too claim the tax credit?

Ridiculous apples and oranges comparison. You can't cherry pick colors and claim the price difference. Nobody pushed anyone to do anything. People were desperately trying to be the first one on the block with a Tesla.

Basic AP isn't worth 3k either.

 

[happyzod]

The reason phones (and computers and everything else) drops in price is because of Moore's law where the transistor density in a chip increases exponentially. There is not this same phenomenon in a car.

A better comparison would be a product like a modem, wireless router, or windows license. Those products remain stable and have very good resale values because the companies that make them do not lower price.

 

[Nocturnal]

Still waiting for Sutton to back up his BS claim about paying 72k in January.

 

[happyzod]

Ridiculous apples and oranges comparison. You can't cherry pick colors and claim the price difference. Nobody pushed anyone to do anything. People were desperately trying to be the first one on the block with a Tesla.

Basic AP isn't worth 3k either.

Basic AP was sold for 3k at the time of purchase. There was a special price of $2k for people who bought in January to make up for the price reductions in Feburary.

Tesla (Enhanced) Autopilot vs. Full Self-Driving: What's the difference now?

 

[Nocturnal]

The reason phones (and computers and everything else) drops in price is because of Moore's law where the transistor density in a chip increases exponentially. There is not this same phenomenon in a car.

A better comparison would be a product like a modem, wireless router, or windows license. Those products remain stable and have very good resale values because the companies that make them do not lower price.

What on earth are you talking a about? The only time the price doesn't change is when they bring out a new model. Those mose definitely change in price.

And yes, it does apply to cars. You buy a car from a new company, prices are going to change. One way or the other. And what is a Tesla if not a big computer (with batteries) on wheels?

 

[happyzod]

What on earth are you talking a about? The only time the price doesn't change is when they bring out a new model. Those mose definitely change in price.

And yes, it does apply to cars. You buy a car from a new company, prices are going to change. One way or the other.

Again, you do not understand the reason why tech specifically depreciates so quickly compared to other things you buy. I tried to explain it to you but you fail to understand.

 

[Nocturnal]

Again, you do not understand the reason why tech specifically depreciates so quickly compared to other things you buy. I tried to explain it to you but you fail to understand.

No, I understand it. The problem is that you don't understand how car sales or technology works.

I'm so sick of this price change whining. Sell your cars and walk around being bitter. Next time you can go to a dealer for an ICE car and remain blissfully ignorant that a guy bought your exact same car 6 months later for 5k less. Enjoy your gas station stops.

 

[Dinoraptor101]

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 perfectly understand your frustration and you're not the first one, but you are among those who I know the most to lose by the price
changes, my friends bought LR AWD and it's current MSRP went down about 2000$ USD with exact configuration.

I'm sure there's a reason Tesla is struggling, and has to switch price models, it is lobbied against by uncultured careless and greedy rich, who want to secure their business and win big short-term than save the planet and progress human development.

If you're very upset about it don't give up on Tesla, instead call the store see if they'll give you free supercharger miles or something.

=] Cheers!​

TLR
I also invested to $TSLA knowing full well that it would take a dive and now it was recovered...
When I bought my Tesla, invested in shares, and all my accessories I bought from Tesla, I didn't buy a car, I bought into the vision to spit in the face of those monsters who kept killing EV inventors since the 1950s in the name of oil and greed... I want Tesla to succeed even if it costs me money, I'll just make more money... but I can't make a company like Tesla.... sure call me a socialist but these days the only way the world changes is by the people's vote against the tide.

 

[gibbyj]

Well, I bought our Model S in March 2018, 75d. Paid extra for the white paint, LOL. For about the same money, I could now get a 100d, with better efficiency and better suspension. But look, Tesla has been having a pretty hard time, right? Their employees are working their hearts out, but the batteries & motor are expensive. They don't make that much off their cars; nothing like the margins on a Porsche or Ferrari, I've read. Actually the Model S is the most profitable one, I've heard. I'm glad to help them out. I want them to succeed. And we didn't buy our car to trade it in in a couple years; we plan to drive it quite a while, maybe 10 or 15 years. We bought it b/c it was worth the money, to us, and we don't regret it a bit. Fantastic car, and good for the planet.

 

[Dinoraptor101]

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

Please use nicer language, this forum has some code of ethics. =]

 

[john85775]

You only lose money when you sell. Nearly a year into our first purchase, Tesla is the first car I’ve ever bought where I have no intention of selling any time soon.

So after swallowing an $11k haircut in MX100D prices since then, we doubled down and bought a M3D- this week.

Fret over the price of your investments. But your car?

Drive and enjoy.

 

[Southpasfan]

If I would have waited two months I could have had the dual motor instead of the LW RWD for $2,000 more, considering the loss of the tax incentive. An extra motor instead of a bit less range.

It doesn't bother me that in May, when I ordered, it was, I think, $4,000 more? This is a fascinating thread. It just shows that there are two personality types. One type is not amused by price reductions on cars they recently bought.

The other type could care less because, like me, they have a different way of looking at it.

There is no way to reconcile the two personality types.