Model S&X Price Adjustments

[CTruck_BMW]

Problem, is us, the consumers. We keep posting online and do nothing. If we truly care, people should just boycott Tesla going forward.

If Tesla cares, they must at least offer something, call it free FSD, or whatever, for those who got their cars in the past couple of months. I would not say 1 year cause that is too much, but 1-6 months? Get something to show that you care freaking Elon.

Imagine how many loyal clients they would gain if they just take a move like that!

 

[Kan-O-Z]

It does suck. but it's the name of the game. If you buy an iPhone from Apple Store a few days before they release the new one it drops in price instantly once they reveal new one, which incidentally will be Sept 12th lol.

Not a good comparison at all. First Apple never reduces the price by 30% for the current selling model and no new model has come out. It’s literally the exact same one you bought yesterday but now hugely reduced prices.

Imagine buying Apples latest iPhone today for $1000 and tomorrow out of nowhere it's $700. Nothing new has come out. Just a stock market like fluctuation.

It’s also known approximately that Apple will release a new version, just like all companies do. If you buy the last one of the older model you knew you were doing just that. Also there is a justified reason the old one goes down in price (by usually 10%). It's because there is something that is newer and faster. Well for Tesla there is nothing new. Just a fluctuation.

 

[ngng]

Not a good comparison at all. First Apple never reduces the price by 30% for the current selling model and no new model has come out. It’s literally the exact same one you bought yesterday but now hugely reduced prices.

Imagine buying Apples latest iPhone today for $1000 and tomorrow out of nowhere

It’s also known approximately that Apple will release a new version, just like all companies do. If you buy the last one of the older model you knew you were doing just that.

Stop normalizing Tesla man. What Tesla is doing is not normal. Selling the exact same product for significantly less (without a new one coming out with more features, power, etc). Literally, exact same product. There is not one company you can name that does this.

I'm not normalizing Tesla. I think they are a terrible company that doesn't give two shits about the consumer. Oh wait, that's most for profit corporations!

You realize we live in America and people and corporations are can charge what they'd like as long as is legal.

 

[SoManyM3s]

This hurt a lot. Just bought a use 21 prerefresh yesterday. Could’ve gotten a brand new for 10k more. What a mess I’ve made!

 

[Kan-O-Z]

I bought a house. The price tanked. Who do I blame?

Stop justifying Tesla and treating it like it's completely acceptable. There is no other company that does this. Not Apple, not Google, not GM, not Toyota.

What they have done is make people who paid a lot for their Tesla feel like they got completely ripped off. A cheap car that was priced too high and they went home pocketing it all. Is it our mistake, yes it probably is. I should have known that I am way way overpaying for a cheaper car. I somehow thought that I was paying for the tech and cost of batteries, etc. Clearly I wasn't. I was just paying for straight up huge markup for a cheaper car.

Cars are devalued and customers will likely not come back. Way to go Tesla. How about a novel idea and instead of reducing your cars by $20k, reduce them by $10k and offer people who paid to much back the $10k. There problem fixed. Everyone is happy and their cars are cheaper.

 

[Kan-O-Z]

I'm not normalizing Tesla. I think they are a terrible company that doesn't give two shits about the consumer. Oh wait, that's most for profit corporations!

You realize we live in America and people and corporations are can charge what they'd like as long as is legal.

Sorry didnt see your reply earlier. I finished my comment down below.

You are right, corporations are out to make money. But part of that equation is keeping customers happy so they spread good stuff to their friends and come back and buy again. They totally overlooked that part. It's actually part of the profit plan.

 

[Kan-O-Z]

Problem, is us, the consumers. We keep posting online and do nothing. If we truly care, people should just boycott Tesla going forward.

If Tesla cares, they must at least offer something, call it free FSD, or whatever, for those who got their cars in the past couple of months. I would not say 1 year cause that is too much, but 1-6 months? Get something to show that you care freaking Elon.

Imagine how many loyal clients they would gain if they just take a move like that!

Very true. It wouldn't take much to satisfy customers. My take is instead of reducing price by $20k, do half of that, reduce by $10k and use the extra that is being profited to pay back customers for loyalty. Win win.

 

[etekberg]

Name a car dealer (or better yet a car company) that changes their normal price (not sale/promo price) for a vehicle by $20k overnight.

Or for that matter name any product (phone, laptop, etc) that has a huge price adjustment month to month. I’ve never seen an Apple product go from being $1000 to $700 for the exact same model/version that you just bought yesterday.

I think Elon’s Asperger’s causes unstability at all levels in all his companies.

Like pretty much every single one. For instance Ford. They put rebates on certain vehicles. My F150 back before the pandemic was $14k off sticker. Only about $6k came from the dealer. The rest was the manufacturer - Ford. I'd much rather have these upfront price adjustments vs. the hidden ones that are rebates. This is so much easier.

 

[Kan-O-Z]

This hurt a lot. Just bought a use 21 prerefresh yesterday. Could’ve gotten a brand new for 10k more. What a mess I’ve made!

All of us are in the same boat. You actually didnt do that bad. Some people have lost $60-$70k in just 6 months. Some bought a Plaid for $140k and now you can buy one for $90k! I really wonder how low these prices will go. I'm really wondering how cheap Tesla's really are.

 

[Kan-O-Z]

Like pretty much every single one. For instance Ford. They put rebates on certain vehicles. My F150 back before the pandemic was $14k off sticker. Only about $6k came from the dealer. The rest was the manufacturer - Ford. I'd much rather have these upfront price adjustments vs. the hidden ones that are rebates. This is so much easier.

Nope not the same. Rebates are promotional, for a short period of time. The better thing to compare would be say all F150 trucks are now going to be cheaper by $20k everywhere. It's just the new regular price. It makes the vehicle feel cheap and way overpriced. It means they were selling way way way over all this time.

Also rebates dont hurt the used market long term. Maybe just for a quick short term but definitely not long term. The reason is people know the prices will come right back to where they were. What Tesla has done is kill the used market long term.

 

[xanderwalker]

In the DTC model the consumer is exposed to this kind of price shock way more than the dealer model. It's not worse, it's just way more in your face.

Tesla is able to take big margins when the demand is high that would otherwise have been taken by a "dealer markup".

There is no way you're not going to feel burned if you just bought a Model S or X, but there is not really a different approach Tesla can take with this situation. They can't announce these things in advance, and they can't go back and refund people on another arbitrary timeline (minus 4 weeks, minus 12 weeks?) to just make a different set of people feel screwed.

They do the same thing with new product updates (going back all the way to 2014 when they launched autopilot and dual motor). Customers who had just taken delivery of $130K P85+ now had the obsolete, badly depreciated model. The same exact sentiments were expressed then: "never buying another Tesla". This situation has happened over and over again with price adjustments and new features.

I'm not trying to defend Tesla here but it's kind of just built into the DTC model that this thing can happen. Super disruptive to dealers, harsh on resale, harsh on the most recent customers, but in the end, the number of new customers who can now afford a much cheaper model S will outnumber the small number of very pissed off people.

 

[ngng]

Sorry didnt see your reply earlier. I finished my comment down below.

You are right, corporations are out to make money. But part of that equation is keeping customers happy so they spread good stuff to their friends and come back and buy again. They totally overlooked that part. It's actually part of the profit plan.

I don't disagree with you. But, if you look at modern Tesla (they used to be decent) they are pushing quantity not quality (product, or customer experience)

 

[xanderwalker]

Nope not the same. Rebates are promotional, for a short period of time. The better thing to compare would be say all F150 trucks are now going to be cheaper by $20k everywhere. It's just the new regular price. It makes the vehicle feel cheap and way overpriced. It means they were selling way way way over all this time.

Also rebates dont hurt the used market long term. Maybe just for a quick short term but definitely not long term. The reason is people know the prices will come right back to where they were. What Tesla has done is kill the used market long term.

Ford dropped the F150 Lightning $10K in July of this year.

 

[cybernation]

I bought a house. The price tanked. Who do I blame?

blame your government! or the person who built it! The complaints are ridiculous.

 

[Kan-O-Z]

In the DTC model the consumer is exposed to this kind of price shock way more than the dealer model. It's not worse, it's just way more in your face.

Tesla is able to take big margins when the demand is high that would otherwise have been taken by a "dealer markup".

There is no way you're not going to feel burned if you just bought a Model S or X, but there is not really a different approach Tesla can take with this situation. They can't announce these things in advance, and they can't go back and refund people on another arbitrary timeline (minus 4 weeks, minus 12 weeks?) to just make a different set of people feel screwed.

They do the same thing with new product updates (going back all the way to 2014 when they launched autopilot and dual motor). Customers who had just taken delivery of $130K P85+ now had the obsolete, badly depreciated model. The same exact sentiments were expressed then: "never buying another Tesla". This situation has happened over and over again with price adjustments and new features.

I'm not trying to defend Tesla here but it's kind of just built into the DTC model that this thing can happen. Super disruptive to dealers, harsh on resale, harsh on the most recent customers, but in the end, the number of new customers who can now afford a much cheaper model S will outnumber the small number of very pissed off people.

What about Apple? They did it right to protect the consumer. Their phones are not fluctuating like crazy every other week.

 

[Kan-O-Z]

Ford dropped the F150 Lightning $10K in July of this year.

Ok good point but it's still not the the levels of a guy buying a Plaid for $140k and now it's $90k. Thats insane!

 

[maytaurustiger]

the number of new customers who can now afford a much cheaper model S will outnumber the small number of very pissed off people.

That's probably why they dropped it, but just wondering, do you think Tesla will sell another 100Kish car with more features now that they dropped their supposed more "luxury" models (X and S) to 80Kish or less?

 

[xanderwalker]

It is possible that this is signaling a pending S and X update in Q4, but impossible to know for sure. Could just be that they saw softening demand and need to make sure all of these units and the next 4 production weeks get delivered before the end of Q3.

 

[Kan-O-Z]

It is possible that this is signaling a pending S and X update in Q4, but impossible to know for sure. Could just be that they saw softening demand and need to make sure all of these units and the next 4 production weeks get delivered before the end of Q3.

If that's the case then they should make it promotion. Then they can get their rush of buyers. 6 months down the line the used market is not affected.

 

[Kan-O-Z]

I'm not trying to defend Tesla here but it's kind of just built into the DTC model that this thing can happen. Super disruptive to dealers, harsh on resale, harsh on the most recent customers, but in the end, the number of new customers who can now afford a much cheaper model S will outnumber the small number of very pissed off people.

It's not a small number of people. It's everyone who has an S or X and is trying to sell in the used market. Its basically everyone with an S or X.

Pissed off customers go out of their way to tell others how crappy something is 10x more. They are also going to affect indirect sales by people not recommending Tesla to their friends or family.

It also cheapens the product. It's like saying fool I sold you a $50k car for a $100k you sucker. It puts a big dent in Tesla's brand and image.

So I dont think the small number of increased sales will make up for this. Remember an $80k car is still out of reach of most people. These are their top tier customers, the ones that supported the company into existence in the beginning. Someone didn't think this one through. Elon is an idiot in so many ways.....