Model 3 performance price increase

[nxsynjs]

If you wanted to create a halo product, you need to give it more value than the model just below.. For example, in this case including EAP with a model 3 P would increase profit and value. At the moment I'd struggle to justify one based on the 60K price point. Also.. If the purpose was to increase profit, then the price of every M3P world wide would have gone up. If it was to do with the B word, then I would have expect the cost have risen for the rest of the range.. Although.. perhaps they cant raise the price of the SR+ due to competition from ID3,E-niro etc and the LR due to the 50K grant, so they pile all the price rises into the M3P

My other theory is Tesla are "trying it on" to see how fewer M3P's they sell at the price point. If its not that much of a drop it'll stay like it..

 

[M3P_W8]

The reasoning for pricing will likely be to encourage adoption of the LR version and help keep things simple in production whilst improving margins on the top model

The pricing certainly won’t be because of any supply issues which I don’t believe they have.

With it being confirmed that there will be no M3P deliveries to the UK during Q1 (nothing until May), it could be argued that there are supply issues.

 

[Durzel]

If you wanted to create a halo product, you need to give it more value than the model just below.. For example, in this case including EAP with a model 3 P would increase profit and value. At the moment I'd struggle to justify one based on the 60K price point. Also.. If the purpose was to increase profit, then the price of every M3P world wide would have gone up. If it was to do with the B word, then I would have expect the cost have risen for the rest of the range.. Although.. perhaps they cant raise the price of the SR+ due to competition from ID3,E-niro etc and the LR due to the 50K grant, so they pile all the price ranges into the M3P

My other theory is Tesla are "trying it on" to see how fewer M3P's they sell at the price point. If its not that much of a drop it'll stay like it..

I think your last sentence is on the money, myself.

It could simply be Tesla determining from their sales figures that "too many" people are plumping for the P over the LR, or rather the price differential wasn't putting as many people off as they were expecting. The price of halo products is seldom anything to do with the build cost, it's whatever the market is willing to bear together with what their market research deems an aspirational/exclusivity price point to be.

I tend to think the price going up is simply a calculated experiment to see how many people it will actually put off. Tesla is after all still the EV brand.

 

[M3P_W8]

I think your last sentence is on the money, myself.

It could simply be Tesla determining from their sales figures that "too many" people are plumping for the P over the LR, or rather the price differential wasn't putting as many people off as they were expecting. The price of halo products is seldom anything to do with the build cost, it's whatever the market is willing to bear together with what their market research deems an aspirational/exclusivity price point to be.

I tend to think the price going up is simply a calculated experiment to see how many people it will actually put off. Tesla is after all still the EV brand.

But why experiment with a price increase in the UK only a couple of weeks after dropping the price across the EU?

I know all of this is speculation, but I am struggling to see the logic in it given everything we know.

I'm one of the lucky ones that got my M3P ordered in early January before the increase. My uneducated hope is that there is some kind of specification upgrade planned for Q2 (air suspension? ) which justifies the UK price increase and that the EU price drop was only temporary to ensure all their Q1 deliveries get sold beforehand. Probably just wishful thinking, but I have to occupy myself somehow between now and May!

 

[tomorrowman]

Had my heart set on the P, but now looking at the LR. Is the boost option on the LR only available after you receive the car? Not on config option.

It's a post purchase option, which you select from the upgrades section of the app. It was £1,500, not too sure if that has changed

 

[Durzel]

But why experiment with a price increase in the UK only a couple of weeks after dropping the price across the EU?

I know all of this is speculation, but I am struggling to see the logic in it given everything we know.

I'm one of the lucky ones that got my M3P ordered in early January before the increase. My uneducated hope is that there is some kind of specification upgrade planned for Q2 (air suspension? ) which justifies the UK price increase and that the EU price drop was only temporary to ensure all their Q1 deliveries get sold beforehand. Probably just wishful thinking, but I have to occupy myself somehow between now and May!

Possibly because the UK isn't in the EU anymore? I dunno. I can't see a logical reason for tying it to Brexit, maybe there's supply chain involvement? The price in Euros isn't consistent throughout Europe either, mind.

It could simply be that they believe the UK market is willing to bear this price.

 

[HenryT]

I wonder if the M3P is proportionally more popular in the UK than EU, hence a soft target for a profit hike?

 

[browellm]

I wonder if the M3P is proportionally more popular in the UK than EU, hence a soft target for a profit hike?

I actually see all this the other way around. I think that when the P originally went over the grant threshold, sales fell off a cliff and many would have diverted into the LR. It's not uncommon for companies to increase prices on lower volume items because the cost of making/distributing them goes up further.

It could well be that Tesla have got longer term plans to further differentiate the P from the LR, with more performance, better toys etc. But today, there's not enough in the value prop to interest me.

 

[s88ats]

It's a post purchase option, which you select from the upgrades section of the app. It was £1,500, not too sure if that has changed

It still is.

I keep looking at it and always get tempted to splurge, but with it sitting on the drive and already so quick, I can't justify it

 

[s88ats]

My LR with Boost has a 0-60 time of 3.49s with the rollout. Although Tesla states the equavalent for a P is 3.1s, results posted on Dragy show times around 2.98s, so there is still about 0.5s between LR+boost and P.

This is exactly what I assumed too. Considering you can't get the P3d- anymore, my understanding was the LR with boast was similar to the LR with a boost as there's not much in it.

 

[CountvonC]

Oddly it says the M3P is £59,900 and when you add the £1000 black paint it becomes £60k all in.....
So the car I paid £59.? k for in March 2020 is now £67.8k now assuming the maths is done correctly!

 

[Peteski]

It still is.

I keep looking at it and always get tempted to splurge, but with it sitting on the drive and already so quick, I can't justify it

Exactly! Today it is -1C with light snow. It’s quick enough for sure.

 

[hmy7k]

I only chose the P over the LR because I preferred the wheels. I definitely don't think the P is worth that much more than the LR and you rarely use the extra performance. I was wondering if it was worth getting rid of my 1 year old P and swapping it for a new LR, there would probably be very little cost to change.

 

[Peteski]

The reasoning for pricing will likely be to encourage adoption of the LR version and help keep things simple in production whilst improving margins on the top model

The pricing certainly won’t be because of any supply issues which I don’t believe they have.

Well there is certainly a UK supply issue. No 2021 P cars in inventory and custom orders for May delivery at the earliest. So looks to me like a simple demand/supply price hike.

Raising the P price may also sell a few more LR models in stock for those who don’t want to wait until May.

It basically looks like they didn’t build quite enough P models for the UK market and perhaps too many LR.

 

[Animal]

Every car I ever had when I didnt buy the top spec model I always regretted it every time I saw one on the road. Bought Audi tts instead of the ttrs and regretted it, bought fiesta xr2i when I really wanted the fiesta rs turbo always said to myself I wouldnt do it again, sick of spending money trying to make my car look, sound and perform like the top model, just spend the cash and enjoy the feeling of owning top of the range knowing the money is gone and you can be smug.
You are only here once and its only money so spend it and dont be a tightwad!

Hello, this is my first post on the forum and am excited at the prospect of owning my very first Tesla later this year. I’ve been after a brand new car for a few years but have held off since buying a house however I’m shortly due to retire (only aged 49 years!). I’ve always been a ‘petrol head’ but also love technology/gadgets and really buy into renewable energy so makes complete sense to purchase an EV.

I have to admit I’ve become slightly obsessed about buying a Tesla and regularly visit the website even though I won’t be purchasing until around October as am having a lot of building works undertaken and wouldn’t want to see my pride and covered a dust! I’ve had my heart set on a Tesla Model 3 Performance finished in white with black interior but will change the wood trim to alcantara as it looks really naff.

I’m disappointed to see the price increase for the Model 3 Performance which in my opinion is quite a significant rise but as another has already said, I think I would regret not buying the flagship model. That said, I won’t be adding enhanced autopilot or FSD which in my view is currently a complete waste of money given the technology is still not advanced enough to operate flawlessly in response to environmental variables (and other humans!).

Apologies for going slightly off topic but am pleased to join you all on this forum and excited at the prospect of my purchase later this year

 

[nxsynjs]

Hi and welcome I would suggest holding off and seeing what's what after the next lot arrive. I suspect we will see a price reduction agan then

 

[Animal]

Hi and welcome I would suggest holding off and seeing what's what after the next lot arrive. I suspect we will see a price reduction agan then

Thanks for the welcome I won’t consider ordering until at least July for a September/October delivery in any event as I have all the building works being carried out so cross fingers there will be more features or a price reduction

 

[Rooster6655]

With it being confirmed that there will be no M3P deliveries to the UK during Q1 (nothing until May), it could be argued that there are supply issues.

Well there is certainly a UK supply issue. No 2021 P cars in inventory and custom orders for May delivery at the earliest. So looks to me like a simple demand/supply price hike.

Well yes in that case there is a supply issue for anyone wanting one before May but this will have been a decision by Tesla not to bother shipping any rather than due to production constraints was what I meant

 

[nxsynjs]

I wonder if the supply issues are to give Shanghai time to ramp up production and make sure the QA is better for RHD cars?

 

[Peteski]

Well yes in that case there is a supply issue for anyone wanting one before May but this will have been a decision by Tesla not to bother shipping any rather than due to production constraints was what I meant

The only reason I can think of for Tesla not bothering to ship any cars is if they didn't have any to ship or were unable to ship them for whatever reason. Either way, that is by definition a supply issue. So with demand being relatively high and a short term supply issue, it doesn't surprise me that they have raised the price.