Model 3 price drops and reactions foreshadowed thousands of years ago.

[MXWing]

A good friend brought up this up to me and I was blown away by how relatable the passage was. Two millennium after common era, a parable holds truer than ever.

Imagine if Musk said the following!

13 “But he answered one of them, ‘I am not being unfair to you, friend. Didn’t you agree to work for a denarius? 14 Take your pay and go. I want to give the one who was hired last the same as I gave you. 15 Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?’

Source: Matthew 20:1-16

I for one am glad to see more Tesla’s on the road and what I willingly paid last year should not take away my happiness or wish for more difficulty upon new owners.

 

[Kilotango74]

A good friend brought up this up to me and I was blown away by how relatable the passage was. Two millennium after common era, a parable holds truer than ever.

Imagine if Musk said the following!

13 “But he answered one of them, ‘I am not being unfair to you, friend. Didn’t you agree to work for a denarius? 14 Take your pay and go. I want to give the one who was hired last the same as I gave you. 15 Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?’

Source: Matthew 20:1-16

I for one am glad to see more Tesla’s on the road and what I willingly paid last year should not take away my happiness or wish for more difficulty upon new owners.

Well said. No one held a gun to the head of early adopters. Basically when it comes to new tech, which of course Tesla is, early adopters are subsidizing those who purchase later on down the road.

 

[SageBrush]

SSSSSHHHH

It's a Seekret plan, damn it.

 

[derekmw]

A good friend brought up this up to me and I was blown away by how relatable the passage was. Two millennium after common era, a parable holds truer than ever.

Imagine if Musk said the following!

13 “But he answered one of them, ‘I am not being unfair to you, friend. Didn’t you agree to work for a denarius? 14 Take your pay and go. I want to give the one who was hired last the same as I gave you. 15 Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?’

Source: Matthew 20:1-16

I for one am glad to see more Tesla’s on the road and what I willingly paid last year should not take away my happiness or wish for more difficulty upon new owners.

Although I never complained about price drops (I actually welcomed it, sold my car and picked up the better model), I think we all can agree that nothing about these price changes is due to Musk being 'generous'. lol

 

[UTMB]

Well said. No one held a gun to the head of early adopters. Basically when it comes to new tech, which of course Tesla is, early adopters are subsidizing those who purchase later on down the road.

Don’t forget the Jeep and other SUV buyers who have subsidized ZEV credits purchased from Tesla by Fiat Chrysler (i.e. they are making our cars cheaper). Gas guzzler is my shepherd; I shall not want.

 

[VQTRVA]

found it odd that people fail to realize this has happened before: P3D with no PUP for $5K less & are outraged some how- https://teslamotorsclub.com/tmc/threads/anyone-have-a-performance-model-without-pup.127200/[URL="https://teslamotorsclub.com/tmc/threads/anyone-have-a-performance-model-without-pup.127200/"]Anyone have a Performance model without PUP?[/URL]

 

[Glamisduner]

found it odd that people fail to realize this has happened before: P3D with no PUP for $5K less & are outraged some how- Anyone have a Performance model without PUP?Anyone have a Performance model without PUP?

Yes that was hard to take after waiting 2 years for your car, you finally pick it up and a week later they droped the price 5k.. Is the whole slap in the face for waiting 2 years, then rewarding people who only waited weeks.

This time around it only sucks because many people now owe more on their inferior card, than a new car costs. I'm mostly jealous of the free paint, vs mine where i can see tape lines where they repainted it.

 

[daniel]

Well said. No one held a gun to the head of early adopters. Basically when it comes to new tech, which of course Tesla is, early adopters are subsidizing those who purchase later on down the road.

I paid more for my car than I'd have paid if I'd waited because I would not have gotten the premium interior. But I wanted the car as soon as possible. So I paid extra. I have no regrets. I got to drive the car for months that I'd otherwise have missed out on.

The U.S. is a market economy. People make decisions about whether to buy something at the offered price and companies adjust their prices all the time. Heck, Amazon charges different people different amounts for the same item based on an algorithm that tries to figure out how much you're probably willing to pay. And other car companies make you haggle over the price, and introduce and withdraw incentives all the time.

People shouldn't buy the car if they don't think it's a fair price. It's a car, not food or medical care that you need regardless of cost.

 

[MXWing]

Yes that was hard to take after waiting 2 years for your car, you finally pick it up and a week later they droped the price 5k.. Is the whole slap in the face for waiting 2 years, then rewarding people who only waited weeks.

This time around it only sucks because many people now owe more on their inferior card, than a new car costs. I'm mostly jealous of the free paint, vs mine where i can see tape lines where they repainted it.

Did you account for the tax credit difference, FUSC refund option, and what a theoretical P3 lease would have cost for payment streams from when you took delivery until now?

I’m certain the losses are not as bad as you think it is.

 

[ralph142]

Sorry to quibble, but a parable in a book attributed to the apostle Matthew can’t be 2 millennia before the common era, 2 ago, yes (ish). Otherwise excellent point. Non-Tesla dealers make price changes constantly and no two people pay the same amount, it’s always haggling ( insert Monty python haggling scene from the life of Brian, ‘yes but it’s worth 10’) One of the vile aspects of car buying. With Tesla it’s transparent, with others you will never know.

 

[Glamisduner]

Did you account for the tax credit difference, FUSC refund option, and what a theoretical P3 lease would have cost for payment streams from when you took delivery until now?

I’m certain the losses are not as bad as you think it is.

Still it's like a 20k price drop on pricing not counting, refundeds and incentives that were supposed to benefit buyers and help manufacturers sell cars so imo it shouldn't be counted, plus you had to qualify, the 5k back was generous and although for sure it counts but it took people allot of complaining to get it.

It makes little sense to buy a sedan other than a Tesla if you can change at home. Why would she currently but a leaf? Other than fear if the prices dropping even lower which I'm sure they will.

So you remember the post than i predicted free ap, and the either I mentioned free it discounted performance unlock? Well both happened! Not exactly as i predicted, but both have come true. Not sure what will be the next major price drop, and I for sure didn't think multicoat white would be the free color. They don't even seem touch-up paint for multicoat white....

 

[Glamisduner]

Sorry to quibble, but a parable in a book attributed to the apostle Matthew can’t be 2 millennia before the common era, 2 ago, yes (ish). Otherwise excellent point. Non-Tesla dealers make price changes constantly and no two people pay the same amount, it’s always haggling ( insert Monty python haggling scene from the life of Brian, ‘yes but it’s worth 10’) One of the vile aspects of car buying. With Tesla it’s transparent, with others you will never know.

It's almost worse with Tesla, I have no idea how many demand levers they actually have. But they are always pushing them as but before the rebate ends. It take the car because we might not have another one before the quarter where the rebate ends! You want that related right? Prices will be higher later so you should buy now! But in reality, prices just keep dropping regardless.

 

[kdhsurf83]

I purchased a LR AWD Model 3 3 weeks ago for $50,900 with a $1,200 destination charge and midnight silver paint and aero wheels. You can currently purchase a P3- in midnight silver and aero wheels for $50,990 (found on tesla showroom deals through facebook). I will qualify for the $3750 tax rebate while current buyers qualify for $1875.
My car = $50,900 - $3,750 = $47,150
LR AWD in midnight silver with aeros = $48,990 - $1875 = $47,115 (today's price for my car)
P3- = $50,990 - 1875 = $49,115

I would have absolutely bought the P3- instead of my car and stand by ready to pay for a software upgrade if offered. Obviously, it would be better to have the money now than to wait for tax time but in the end it balances out to not much of a change for me.

So come on Tesla offer us the software unlock!

 

[Glamisduner]

I purchased a LR AWD Model 3 3 weeks ago for $50,900 with a $1,200 destination charge and midnight silver paint and aero wheels. You can currently purchase a P3- in midnight silver and aero wheels for $50,990 (found on tesla showroom deals through facebook). I will qualify for the $3750 tax rebate while current buyers qualify for $1875.
My car = $50,900 - $3,750 = $47,150
LR AWD in midnight silver with aeros = $48,990 - $1875 = $47,115 (today's price for my car)
P3- = $50,990 - 1875 = $49,115

I would have absolutely bought the P3- instead of my car and stand by ready to pay for a software upgrade if offered. Obviously, it would be better to have the money now than to wait for tax time but in the end it balances out to not much of a change for me.

So come on Tesla offer us the software unlock!

And I would have bought the awd, if i knew I could upgrade to performance later for 2k instead of paying 10k more for it....

 

[Knightshade]

Yes that was hard to take after waiting 2 years for your car, you finally pick it up and a week later they droped the price 5k.. Is the whole slap in the face for waiting 2 years, then rewarding people who only waited weeks.

Except they let you get the $5000 back if you returned FUSC (which new buyers don't get anyway)

Still it's like a 20k price drop on pricing not counting, refundeds and incentives

So...it's not actually anywhere near 20k then- since all those things actually count.

 

[MXWing]

Still it's like a 20k price drop on pricing not counting, refundeds and incentives that were supposed to benefit buyers and help manufacturers sell cars so imo it shouldn't be counted, plus you had to qualify, the 5k back was generous and although for sure it counts but it took people allot of complaining to get it.

It makes little sense to buy a sedan other than a Tesla if you can change at home. Why would she currently but a leaf? Other than fear if the prices dropping even lower which I'm sure they will.

So you remember the post than i predicted free ap, and the either I mentioned free it discounted performance unlock? Well both happened! Not exactly as i predicted, but both have come true. Not sure what will be the next major price drop, and I for sure didn't think multicoat white would be the free color. They don't even seem touch-up paint for multicoat white....

You HAVE to count refunds and incentives because without them its practically an economic law that prices will go down without them.

MSRP to MSRP is a wrong and false comparison. A lot of brouhaha was made over Avengers: Endgame being the highest grossing movie. Much like the 20K price cut on the P Model 3 both are are very wrong.

Gone with the Wind, Sound of Music, 10 Commandments (4 hours run time!!) all wrecked Avengers.

End Game making 118 quadrillion dollars sounds impressive until you realize its inflated Iranian currency.

Tesla by being a rational agent will charge what the market will bear. The market bears more in the presence of a subsidy. Take away the subsidies, ceteris paribus, the demand curve shifts left. How far left will depend on price demand elasticity of Model 3s.

There is no question Model 3 prices will drop in the absence of subsidies. The only question is how much?

How much needs to account for other market conditions and Tesla’s internal economics.

Points in time matter as well. AP isn’t free when you compared the date to where AP was available standard for on menu but had to pay for it on off menu cars.

Even if the price drops again, AP still is never free. It’s “bundled” and Tesla has to account for every marginal cost and every marginal revenue variable no matter how the numbers are arranged for the “total package”.

You can’t argue fairly and in good faith if you willfully discard the factors above.

 

[VQTRVA]

Yes that was hard to take after waiting 2 years for your car, you finally pick it up and a week later they droped the price 5k.. Is the whole slap in the face for waiting 2 years, then rewarding people who only waited weeks.

This time around it only sucks because many people now owe more on their inferior card, than a new car costs. I'm mostly jealous of the free paint, vs mine where i can see tape lines where they repainted it.

And I would have bought the awd, if i knew I could upgrade to performance later for 2k instead of paying 10k more for it....

You wouldn't have known about the P3D unbundled without PUP last week because it was a production mistake & were only to get rid of cars on the lot h is temporary phenomenon.
The paradigm has changed & at a lightning pace for sure.
Early adoption on any new technology will be risky.

Thanks for taking a bullet for future M.3 owners but don't recall any1 ever asking you to take one for us nor are we sure what you did for us....& then be bitter about it.