Model S Price Cut: How Telsa treats new owners

[stopcrazypp]

The problem is that even with a goodwill gesture it's a very slippery slope. If they decide to give people who ordered the car 30 days before the price drop a $1000 credit then the people who ordered the car 31 or 32 days before the price drop get upset that they didn't get anything. There needs to be a line somewhere and the line tesla has taken is that if you ordered before the price drop then unfortunately you are out of luck.

When people talked about Tesla allowing those in progress of configuring to also get the price cut, I figured a thread similar to this would eventually happen (although ironically those people weren't actually expecting to get the price cut, they totally expected Tesla to say that the price is set). Tesla has to draw a line somewhere.

 

[azred]

We're hearing from the comparatively small numbers affected by the 60/75 upgrade price cut and the related 75 price cut. Wait until the AP2 and FSD prices are slashed when Model 3 is introduced -- and software prices for X and S AP2 and FSD follow. That will PO the majority of current owners. This website will probably crash from the mass of humanity posting their anger and loss of their innocence.

 

[Spidy]

It is important to remember that Tesla's Direct Sales model ensures that everybody is treated equally at the time. The price is the price, there is no negotiating, contrary to the traditional franchise dealer sales model of all other car manufacturers. There are people who end up paying different prices for the exact same car at the exact same time due to the franchise dealer model. Now that is unfair and people have been forced to put up with it forever. Have you ever walked out of a franchise dealership and thought to yourself, "Gee, that was a pleasant experience..." I haven't. I feel like I need to take a shower.

People who are affected won't care if it was the same day or a few weeks apart, especially since there can be big gaps between order and actually getting the car.

For a company that thinks discounts are such a big evil this is just a pretty bad move. These price reductions and changes could have been introduced much slower, but that's just Tesla playing their quarterly sales games as usual and at the end of the day some of those seem worse than someone else getting a slightly larger discount.

 

[ZAKEEUS]

Are we gonna get another round of these discussions when the price of Autopilot eventually drops?

 

[alapd]

Are we gonna get another round of these discussions when the price of Autopilot eventually drops?

We will get 4 of these threads when the price of the floor mats drop $4

 

[ucmndd]

Tesla, where the predictable and massive depreciation of automobiles intersects with the predictable and massive depreciation of emerging technology.

 

[Kant.Ing]

Amazon should start selling Tesla cars, I love their customer service which is the best! Don't like to deal directly with sellers or, manufacturers.

 

[McRat]

Ya I remember when I paid a ton of money for a Compaq computer with a 286 CPU. Top of the line everything, fancy mono chrome monitor and tons of memory. You know what those dirty SOB's did 6 months later? They started selling a 386 machine for same money with more memory.

I will never buy another Compaq computer as long as I live.

Correct me if my memory is failing, but IIRC, Compaq was the first to release the 80386DX desktop and it was about $9,000 in those days nicely trimmed. It was billed as the World's Fastest Desktop with the biggest HDD. A 'supercomputer' for your desk. Corrected for inflation, that's $20,000 in today's money. It was the Baddest of the Bad in x86 technology in all areas.

 

[tomp]

I sympathize with the OP, and think some folks here are being too harsh. $9,000 is a big difference.
I think the analogies to other advanced technologies are not as relevant due to the cost involved. A TV or phone costs several hundred or maybe a couple thousand dollars. This is way more. And other cars are manufactured on a yearly cycle, so you have more information on the timing of potential future changes.

I think Tesla should offer something in a case like this - the free service suggestion is a good one.

Here is my story about the recent price cut.

• Ordered a new Model S 75D (with optional glass roof, $1500 option) in early February. This is my second Model S (owned a 2013). Also have a deposit on a 3
• Mid-March, Tesla contacts me - all of a sudden its a rush to arrange delivery, which was challenging due to my work and travel
• Big push to get me to take delivery prior to end of Q, which I did on March 30 by changing my schedule, etc.
• April 17, Telsa announces i) $7500 price cut on 75D, and ii) inclusion of glass roof for free.
• Thus I either overpaid $9000, or my car just depreciated by $9000
• Contact Tesla - get a run around for two weeks. They seem very reluctant to say - "you are screwed, we aren't going to do anything"

Finally get the note below -

I want to thank you for your patience. Your feedback regarding this price change is valuable and I have passed along your feedback through our internal channels.

While Tesla is not going to offer price adjustments, I am determined to offer you excellent service.

Please feel free to call me, if you so desire, so we can discuss.

Anyone else have this experience? What can you do in this situation? If it were a few hundred $ not a problem - but its $9k!

 

[alapd]

And other cars are manufactured on a yearly cycle, so you have more information on the timing of potential future changes.

I think Tesla should offer something in a case like this - the free service suggestion is a good one.

There in lies the problem though, comparing to other cars and other car companies. That is not Tesla, and buyers need to know that going into it. They love the buying experience of not having to deal with a stealership and other things, but then want them to operate like legacy car companies. You can't pick and choose the parts you want. They just raised the price of the 100D $2k didn't they? Anyone sending Tesla a check for the difference?

Also, even with other car companies, it is totally possible to pay one price one day for a car at one dealer, and save thousands tomorrow at another because they have inventory to move and it's then end of their quarter. Should they offer refunds too?

 

[spooky981]

Elon Musk famously said that everyone pays the same price for a Tesla. You want the friends and family discount? Go to www.Tesla.com right now and you'll see the friends and family discount.

Not even 45 days later his dealerships start massively discounting inventory to clear out AP1.0 vehicles. Allegedly this extraordinary business owner learned from TWITTER that this was happening and conveniently put an end to the practice two days before the end of the quarter. He says it was only for showroom cars but I personally ordered a machine that wasn't even finished being built at Fremont yet.

And now Tesla chops prices by about $10k again. What do you say to people who purchased a Tesla in February or March who just ate a $10k devaluation out of nowhere? No other car manufacturer puts a buyer through anything like this. The model year is the model year. At least when I buy an iPhone I know there will be a new one in August. It's dangerous to buy a Tesla anytime with these wacky price swings.

I think Elon's price strategy can work. But not the way he's executing it.

 

[hmmm]

We will get 4 of these threads when the price of the floor mats drop $4

One thread per mat?

 

[jeffro01]

This is the same sort of "alternative talking" (aka whining) that happens each and EVERY time Tesla makes a price adjustment, model feature change, technology change, etc... It's amazing to me that we keep having the exact same thread repeated over and over and over again. I would think at some point the message would get through to everyone that you are buying that car as is in that moment in time with that specific configuration. Anything that happens after your order is confirmed is just the way it is, you are getting the car you ordered at the price you agreed to pay for it. What exactly is your issue? That life isn't fair?

I'm sure I'm going to get some dislikes here but for this particular thread, the OP has very little to complain about compared to other similar situations...

Jeff

 

[ucmndd]

I think the analogies to other advanced technologies are not as relevant due to the cost involved. A TV or phone costs several hundred or maybe a couple thousand dollars. This is way more.

On the contrary, would anyone be surprised if the TV they bought a month ago was suddenly being sold for 10% less?

That's what we're talking about here. ~10%.

Sure, that's a "big number" in absolutes, but so is $90,000 for a car.

 

[Pezpunk]

Have the complainers here ever bought a computer before?

 

[ghouston87]

The difference is that if you bought a TV March 30th and it drops $1000. You can easily go to Best Buy, return it and repurchase it. Some Credit Cards have price protection that cover this as well so you don't have to go through that hassle. The OP has every right to be pissed about the $9000 devaluation.

 

[MIT_S60]

The difference is that if you bought a TV March 30th and it drops $1000. You can easily go to Best Buy, return it and repurchase it. Some Credit Cards have price protection that cover this as well so you don't have to go through that hassle. The OP has every right to be pissed about the $9000 devaluation.

Especially when they pushed so hard for the OP to take delivery in March for their bottom line.

 

[Red_DS]

For the sake of discussion, what would be a good way for Tesla to introduce price drops or introduce new features?

I'm not trying to take a side. I understand the poster's frustration but I also value how Tesla introduces new features/options as soon as it's possible instead of waiting for the yearly cycle.

So how can they maintain the right balance?

FWIW, I feel that most changes have been announced at the beginning of the quarter. So maybe Tesla can switch to a quarterly cycle?

Shorter than a yearly cycle to introduce new features and predictable enough for people to plan purchases around.

The only issue would be the factory can get backloaded for each quarter.

 

[Gizmotoy]

If there's anything I've learned from these stories, and there's been depressingly many of them, it's that if Tesla is suddenly pushing you hard to take delivery early, something is up and you should refuse to take delivery early.

On a side note:

Elon Musk famously said that everyone pays the same price for a Tesla. You want the friends and family discount? Go to www.Tesla.com right now and you'll see the friends and family discount.

And even this kind of conveniently disregards the fact that there actually is a $1000 "friends and family" discount through the referral program. They're not really consistent on this pricing message.

 

[stopcrazypp]

If there's anything I've learned from these stories, and there's been depressingly many of them, it's that if Tesla is suddenly pushing you hard to take delivery early, something is up and you should refuse to take delivery early.

On a side note:

And even this kind of conveniently disregards the fact that there actually is a $1000 "friends and family" discount through the referral program. They're not really consistent on this pricing message.

In this case, this was clearly just the standard quarterly rush. I doubt the front line Tesla people were aware of the price increase when they were doing the pushing.