Model S Price Cut: How Telsa treats new owners

[xav-]

By the way I don't know where you guys buy your tech product because return policy in most stores is pretty descent... I had 0 issues using price matching etc sometimes weeks after purchase.

I guess if I could afford a $150k car I would not be wasting my time at target price matching an iPad.. but just saying.

 

[MIT_S60]

By the way I don't know where you guys buy your tech product because return policy in most stores is pretty descent... I had 0 issues using price matching etc sometimes weeks after purchase.

I guess if I could afford a $150k car I would not be wasting my time at target price matching an iPad.. but just saying.

You probably still would be.

 

[David_Cary]

It is interesting that there isn't a thread about increased depreciation. My 70D is worth a lot less today than 2 weeks ago. It is a lease so I don't care - but someone does. I wonder how US bank feels about this? It would be interesting to see the contract between Tesla and US bank - who takes the risk?

One alternative to the big haircut would be a gradual reduction. But deflation really discourages purchases. At least big hit price cuts seem like a buying opportunity. I don't think anyone expects a reduction for a year or more now.

A bigger picture issue here is that deflation is probably getting in the way of EV purchases in general (and solar for that matter). Would be nice if we had a government who could realize this and provide some way of compensating for it. Why buy an EV when next year they will be cheaper and better? I am totally guilty. Have a 2013 Leaf - which was bought after a huge price cut and a 5/2015 70D which was a big price drop - I can't remember the details at the time. I think the 70 was new at the old 60 price with free supercharging. Got solar at relatively high price but super subsidized - some of which went away months later.

 

[BestRadar]

of course i'd be upset, but whining wouldn't accomplish anything. Price changes for consumer goods is a reality of life. Whats the alternative? Tesla never lower the price of anything ever again?

Early Model S prices held very strong and over the years Tesla was steadily increasing prices. Now it seems they hit a Plato where they have started to lose growth so they are now dropping prices. With Technology this is expected but when you buy a car you dont expect this. I personally hate the way Tesla does things and wish they would do yearly models like every other car manufacture and when you go from one year to the next you expect to see some changes in features and prices. I dont like that a month after you buy a car a roof that you paid $1500 for is now free or the battery option you purchased is now $4500 less. They should do changes yearly so customers know what to expect for the rest of the year.

 

[⚡️ELECTROMAN⚡️]

I think their strategy enticed me to buy when I did. So if they can get someone like me to spend $70,000 on a car, then I think they are doing something right. It's the genius of our Lord and savior, Musk at work. The Lord works in mysterious ways.

 

[ucmndd]

A bigger picture issue here is that deflation is probably getting in the way of EV purchases in general (and solar for that matter). Would be nice if we had a government who could realize this and provide some way of compensating for it.

Agree. I wonder if something like substantial tax credits would work.

 

[BestRadar]

I think their strategy enticed me to buy when I did. So if they can get someone like me to spend $70,000 on a car, then I think they are doing something right. It's the genius of our Lord and savior, Musk at work. The Lord works in mysterious ways.

It is interesting that there isn't a thread about increased depreciation. My 70D is worth a lot less today than 2 weeks ago. It is a lease so I don't care - but someone does. I wonder how US bank feels about this? It would be interesting to see the contract between Tesla and US bank - who takes the risk?

One alternative to the big haircut would be a gradual reduction. But deflation really discourages purchases. At least big hit price cuts seem like a buying opportunity. I don't think anyone expects a reduction for a year or more now.

A bigger picture issue here is that deflation is probably getting in the way of EV purchases in general (and solar for that matter). Would be nice if we had a government who could realize this and provide some way of compensating for it. Why buy an EV when next year they will be cheaper and better? I am totally guilty. Have a 2013 Leaf - which was bought after a huge price cut and a 5/2015 70D which was a big price drop - I can't remember the details at the time. I think the 70 was new at the old 60 price with free supercharging. Got solar at relatively high price but super subsidized - some of which went away months later.

I do think that EV Demand is dropping because one of its biggest selling points (Gas Savings) is not where it once was. When average Gas prices were above $4 a gallon getting an EV was a savings of a large chunk of change each month. Heck at its peak I was spending over $100 to fill up my SUV's tank. Gas today is 1/2 the price and therefore the incentive of gas savings is not as great as it once was. More efficient vehicles and lower gas prices is probably playing a big part.

 

[mdevp]

There was a "Big push to get me to take delivery prior to end of Q...". Nothing is better than starting a debate with a good conspiracy theory.

 

[Dutchie]

The best thing is, when you have bought the car, to don't look at prices configurations or this blog ever agian..

 

[Maximilien]

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!

I knew a thread like this was going to arise.

One can only imagine how Model 3 owners would backlash if Tesla pulls this on them.

 

[⚡️ELECTROMAN⚡️]

The best thing is, when you have bought the car, to don't look at prices configurations or this blog ever agian..

That's exactly what I said when I bought my car, but of course I can't stay away from this forum. There is just so much to learn on here. Luckily I bought my car for its electric drivetrain and safe size, and not for selfdriving or as an investment. I totally understand people being pissed about features like AS and AEB not working properly yet, but I'm not going to be upset unless AS or AEB causes me to get into an accident. Oh and the price drop, if it's good for Tesla it's okay with me.

 

[Mediocrates]

I'm still amazed how many people are responding to this from the perspective of a completely different timeline than the one presented in the very first message.

Why do people think the price change was sudden relative to when the order was placed? Why do people think the price of the car is determined at delivery...or some point after order confirmation? Why do people think about vehicle value fluctuation as if they just bought Tesla stock instead of a Tesla automobile? How many of those taking umbrage have actually gone through the process of purchasing a new, custom-configured Tesla?

And, to address the concept that my position is flawed since I am not affected by the price changes (which really only needs to be identified as an ad hominem fallacy and dismissed), I was "affected." I took delivery of a 100D a week ago. This was during the span when the 60 models were dropped but before the 100 models had the price increase. At that point, based on the changes in base pricing, included features, and option pricing, my 100D would have been a few thousand cheaper with more features.

But that's not the car I chose to purchase a month prior. That's not the car I chose to take delivery on 22April. I had all the information I needed during the process and I made choices based on it, just like everyone else who goes through this process.. This is why I am not upset in the slightest.

 

[troypercival]

Tesla had traditionally announce both direct and indirect (free supercharging) price increase ahead of time but had not done so for price decrease like when the MS 60 would be coming out last year. But this is the first time where the price drop without any feature changes so I do understand how people could get upset of this.

 

[mrtian97]

Tesla had traditionally announce both direct and indirect (free supercharging) price increase ahead of time but had not done so for price decrease like when the MS 60 would be coming out last year. But this is the first time where the price drop without any feature changes so I do understand how people could get upset of this.

Agreed, I think better marketing strategy should have been considered. While I like the product, I don't think this type of practice will be sustainable in long term.

 

[Shock-On-T]

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.

The battery unlock discount was offered mid-April, not end-of-quarter.

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!

I feel your pain, but don't let it consume you and spoil the joy of the car itself.
Here in Australia we had an exchange rate swing that caused the price of the base model to rise $20K!
I was in the dealership the weekend before the Monday rise, but was too chicken to put a deposit down.
Had to wait another year until my wife was suitably acclimatised to the new price
Also, I doubt the sales staff knew about the price drop. That sort of secret could never be trusted with an international sales force.
They were probably just trying to make their quarterly targets as normal.