Model S&X Price Adjustments

[SoManyM3s]

They

Agree that Tesla got lucky, but who stopped the industry making EV for the last decade? You can say they are dump for that case. Yes, consumers will have more options, but Tesla will still be a leader. Look at GM, Ford, Kia, Hyundai, BWM, Benz, VW, Lucid, Rivian they all offer EVs, but Tesla sill has 65% market share, that's why its stock reflect it. Wallstreet thinks the rest are playing catch up with Tesla, that's why its stock value is so high. At the end of the day, any decision that the company makes, there are pros and cons. In this case, pros is out-weight the cons, that's why they are doing it. The cons here is obvious, they piss off current customers. But the pros they will sell more EVs, expending their market share, put pressure on GM, Ford, Benz and ect....As you can see, Ford had to react with F150 lightning, reduce 10K, loosing billion of dollards on F150 lightning, but still had to reduce the price due to Tesla. Sometime you reduce the price not because you over-price them, it's just putting pressure to your competitors.

Theyll earn market share from the larger size suv segment for sure

 

[Kan-O-Z]

Agree that Tesla got lucky, but who stopped the industry making EV for the last decade? You can say they are dump for that case. Yes, consumers will have more options, but Tesla will still be a leader. Look at GM, Ford, Kia, Hyundai, BWM, Benz, VW, Lucid, Rivian they all offer EVs, but Tesla sill has 65% market share, that's why its stock reflect it. Wallstreet thinks the rest are playing catch up with Tesla, that's why its stock value is so high. At the end of the day, any decision that the company makes, there are pros and cons. In this case, pros is out-weight the cons, that's why they are doing it. The cons here is obvious, they piss off current customers. But the pros they will sell more EVs, expending their market share, put pressure on GM, Ford, Benz and ect....As you can see, Ford had to react with F150 lightning, reduce 10K, loosing billion of dollards on F150 lightning, but still had to reduce the price due to Tesla. Sometime you reduce the price not because you over-price them, it's just putting pressure to your competitors.

Just read the VW with their EVs are now beating out Tesla in Europe (one of the countries).

Don’t get me wrong. I am differentiating Tesla from Elon. Elon was not the founder of Tesla nor was he the chief engineer and designer at Tesla.

Tesla has truly done something remarkable. I am very glad to see how the market shifted because of them.

What pisses me off is Elon. I wish he got booted from Tesla. I think someone like Cook could execute soooo much better. He would build high quality product, build customers, service and yes pricing and brand image like no other. And stay focused on the company instead of trying to cage fight Zuckerberg. What an idiot who can’t think through a plan, talks too much and doesn’t follow through. He screwed himself on the twitter deal too.

 

[JPWX]

Man, someone here is sure upset about something that's not going to change.

Coming from someone who owns a 2022 Model XLR at a basis at about $117.5K (before taxes) because I bought someone else's order here on the forum. I enjoyed it the last 18 months I've owned the vehicle, and know what I got myself into with the money I've put into it and the payments I agreed to make on it when I signed all the paperwork. It's a business decision due to clearly waning demand vs a time when people had to wait 18-24 months for their vehicle to be delivered. Because why the heck not?

 

[Kan-O-Z]

Man, someone here is sure upset about something that's not going to change.

Coming from someone who owns a 2022 Model XLR at a basis at about $117.5K (before taxes) because I bought someone else's order here on the forum. I enjoyed it the last 18 months I've owned the vehicle, and know what I got myself into with the money I've put into it and the payments I agreed to make on it when I signed all the paperwork. It's a business decision due to clearly waning demand vs a time when people had to wait 18-24 months for their vehicle to be delivered. Because why the heck not?

I think it’s ok to vent don’t you? After all many of us just lost $30-$50k in the past 6 months just from Tesla. Not even counting depreciation. This is not normal.

I sure hope you don’t try to sell your XLR since you will likely get about $60k if you want to buy another car.

I am done venting for now lol. Enjoy Labor Day weekend.

 

[JPWX]

For sure it is not normal. This is not a great experience, but I've come to accept that this is not about any of us. Happy Labor Day weekend to you as well.

 

[ArchHamster]

I have a 2022 Model X which I ordered back at the end of 2020/ beginning of 2021 (I can't quite remember). So I haven't lost a lot on my configuration. I expected Tesla to eventually drop their prices back to pre-covid numbers. I can't quite remember. Was pre covid Tesla Model X 80k or 70k base? Imo, 60-70k feels about right for the base Model X.

I'm more worried how this is going to affect the resale of these cars. At least in the near term, I bet used car places will only want to buy a tesla at a much reduced price if at all.

It's also possible this is just a temporary price reduction to help tesla reduce piled up inventory. I hope it's permanent however. I love my model x a lot, but Tesla is kind of awful as a luxury car company. I'd feel much better about the not so stellar customer support, and no third party repair services if Tesla became priced more like Hondas. I'd rather they improve their customer support, service centers, and parts distribution network but such a hope feels wildly unrealistic. Like hoping for unicorns to be real, or the Earth to start spinning in the opposite direction. I try to keep my dreams grounded in the realm of realistic possibility.

 

[miggz410]

Pretty sure Elon have the numbers to work with before he does any of this adjustments. I doubt Elon just wakes up one morning and goes, " I feel like dropping the prices down today $20k." It's more like this been plan for months and they been watching how the S and X markets are moving.

Also seems like a small percentage of pissed off people will be affected by the new mark downs compare to how many people will be jumping on the new lower price of the S and X... I mean I know a couple of people who just changed their orders from a Model Y to a Model S and X today.

 

[miggz410]

I have a 2022 Model X which I ordered back at the end of 2020/ beginning of 2021 (I can't quite remember). So I haven't lost a lot on my configuration. I expected Tesla to eventually drop their prices back to pre-covid numbers. I can't quite remember. Was pre covid Tesla Model X 80k or 70k base? Imo, 60-70k feels about right for the base Model X.

I'm more worried how this is going to affect the resale of these cars. At least in the near term, I bet used car places will only want to buy a tesla at a much reduced price if at all.

It's also possible this is just a temporary price reduction to help tesla reduce piled up inventory. I hope it's permanent however. I love my model x a lot, but Tesla is kind of awful as a luxury car company. I'd feel much better about the not so stellar customer support, and no third party repair services if Tesla became priced more like Hondas. I'd rather they improve their customer support, service centers, and parts distribution network but such a hope feels wildly unrealistic. Like hoping for unicorns to be real, or the Earth to start spinning in the opposite direction. I try to keep my dreams grounded in the realm of realistic possibility.

Yes I remember both S and X were around $70k-$85k base pre covid.

Anyone who bought a new car between mid 2021 and Pre-Jan23 will be taking a huge loss. Those were the highest peak times when it comes to car prices. Other dealers were marking up their cars $5-$15k over msrp due to shortage. Those times were not normal. I've been a Tesla customer since 2015, prices now are just going back to normal and were it's suppose to be.

 

[DrIlyich]

My TRX and Raptor R are actually appreciating in value, so maybe you all should look into some ICE vehicles

I test drove a model X beginning of August. Absolutely loved it, but knew then that Elon would cut prices by the end of the year. Why wouldn’t you when the federal government is subsidizing your product for free if your customers qualify? Very few people can afford a house with 8% interest rates, much less a $100k car with similar rates. I am holding out until they offer free supercharging, then I’ll purchase my MX!

 

[Kan-O-Z]

My TRX and Raptor R are actually appreciating in value, so maybe you all should look into some ICE vehicles

I test drove a model X beginning of August. Absolutely loved it, but knew then that Elon would cut prices by the end of the year. Why wouldn’t you when the federal government is subsidizing your product for free if your customers qualify? Very few people can afford a house with 8% interest rates, much less a $100k car with similar rates. I am holding out until they offer free supercharging, then I’ll purchase my MX!

Free supercharging is really not that valuable unless you are constantly taking long distance road trips. 99% are not doing that. I find that I supercharge about 4 times a year which is maybe about a $100.

What I would be worried about is the $80k X might be down to $70k soon. Maybe even $60k. Who knows.

Makes you think the X is built kinda cheap. Not like a BMW or any premium brand.

 

[Kan-O-Z]

Yes I remember both S and X were around $70k-$85k base pre covid.

Anyone who bought a new car between mid 2021 and Pre-Jan23 will be taking a huge loss. Those were the highest peak times when it comes to car prices. Other dealers were marking up their cars $5-$15k over msrp due to shortage. Those times were not normal. I've been a Tesla customer since 2015, prices now are just going back to normal and were it's suppose to be.

Pretty sure the X Plaid was $120k pre-Covid. Now it’s $90k. Even those people took a $30k hit. And that is best case scenario.

 

[Kan-O-Z]

Pretty sure Elon have the numbers to work with before he does any of this adjustments. I doubt Elon just wakes up one morning and goes, " I feel like dropping the prices down today $20k." It's more like this been plan for months and they been watching how the S and X markets are moving.

Also seems like a small percentage of pissed off people will be affected by the new mark downs compare to how many people will be jumping on the new lower price of the S and X... I mean I know a couple of people who just changed their orders from a Model Y to a Model S and X today.

Well clearly he was coming out with standard range and people actually ordered it. Next thing you know they drop it altogether and make the long range even cheaper than the standard range. All in the matter of weeks.

Nothing significant has changed in the past few weeks as far as parts cost, supply and demand. It’s more or less driven by a guy who does poorly thought out stuff all the time.

 

[miggz410]

Pretty sure the X Plaid was $120k pre-Covid. Now it’s $90k. Even those people took a $30k hit. And that is best case scenario.

Anyone who bought pre-covid also had the luxury of those highest peak price times. I remember people selling used Teslas for more than a brand new one. I sold my used 2016 S75 for $58k, when used market value pre-covid were only around $45k. I only took a $22k depreciation hit in 4 years. Most people who bough pre-covid and decided not to sell during those times are still in a good depreciation curve.

I'm more focusing on people who bought peak covid period until mid January 2023... Those people will be taking the biggest loss and as expected. Those were not normal times. Like you said, it's the people who changes cars every 2-3 years who will be the most pissed off. That's small compare to what Elon will gain with the new mark downs.

 

[ArchHamster]

[ cut for focus]... Like you said, it's the people who changes cars every 2-3 years who will be the most pissed off. That's small compare to what Elon will gain with the new mark downs.

Hey on the bright side, maybe all our new Model Xians will mean that Tesla will finally give the Model X some much needed love in terms of UI overhauls. I have an entire laundry list of software changes I've been desperately waiting for (slide into my dms elon, plz).

 

[Kan-O-Z]

I have a 2022 Model X which I ordered back at the end of 2020/ beginning of 2021 (I can't quite remember). So I haven't lost a lot on my configuration. I expected Tesla to eventually drop their prices back to pre-covid numbers. I can't quite remember. Was pre covid Tesla Model X 80k or 70k base? Imo, 60-70k feels about right for the base Model X.

I'm more worried how this is going to affect the resale of these cars. At least in the near term, I bet used car places will only want to buy a tesla at a much reduced price if at all.

It's also possible this is just a temporary price reduction to help tesla reduce piled up inventory. I hope it's permanent however. I love my model x a lot, but Tesla is kind of awful as a luxury car company. I'd feel much better about the not so stellar customer support, and no third party repair services if Tesla became priced more like Hondas. I'd rather they improve their customer support, service centers, and parts distribution network but such a hope feels wildly unrealistic. Like hoping for unicorns to be real, or the Earth to start spinning in the opposite direction. I try to keep my dreams grounded in the realm of realistic possibility.

What you ask of Tesla should absolutely be expected. Please don’t compare it to a unicorn lol. S/X are $100k cars. Why should we have shitty everything for paying that kinda money.

This is what I keep saying. Elon needs to run this company way better. Everything from poor QA, misaligned panels and bad service to making existing customers feel like they got a $50k car but paid $100k. Not good at all.

Please stop making excuses for this guy and that this was the only way to do business. It’s clearly not. Apple was able to sustain its prices through Covid and after Covid, and was even able to work through supply issues. Now that’s genius in my book. Not some dude that runs a company like sh*t and is on social media challenging Zuckerberg in a fight. Learn from Apple. Make quality products. Treat customers well. Learn from Apple which is worth way more than Tesla.

 

[miggz410]

Well clearly he was coming out with standard range and people actually ordered it. Next thing you know they drop it altogether and make the long range even cheaper than the standard range. All in the matter of weeks.

Nothing significant has changed in the past few weeks as far as parts cost, supply and demand. It’s more or less driven by a guy who does poorly thought out stuff all the time.

Meh, standard range were just a software locked long range vehicle. Battery did not need to be replaced. Market was probably very small for it, reason they just scrapped it all together after a few weeks. They did the same thing with the Model Y.

 

[posity]

When we bought our X, I knew we were jumping on one big engineering and social experiment. Could have gone horribly wrong, but we thankfully got an amazing and reliable car, a superb charging network, we save hundreds of dollars a month on fuel, and we each are responsible for helping eliminate Detroit's stranglehold on driving us to a polluted, earth-ending future.

Car companies have always made quick and major adjustments to price based on market conditions. The marketing sleazbags have figured out ways to hide this by calling them rebates or 'sales' and never having the honesty to publish their true pricing online for all to see. Tesla is gimmick free: they just change prices to reflect demand, supply, and their constantly improving manufacturing efficiencies. It's interesting to see how their simple and transparent pricing model upsets so many people so thoroughly.

Who knows how it all ends? My guess is FSD will happen and hopefully it will be Tesla that does it, especially given the new massive AI super computer that Tesla is just now turning on to train your AI. With a truly working FSD, that will be a world changer. I am not in agreement with the folks here predicting Tesla's demise but there certainly are lots of growing pains when you have models for every part of your business that fly in the face of established norms.

Lots of folks predicted this 80k pricing to take advantage of the rebate. Not really that much of a surprise if you have been paying attention. Between the rebate and Tesla's focus on manufacturing efficiencies, this seemed inevitable. Although it affects my pocketbook, it brings me a bit of pleasure to see all the auto company stealerships squirm every time Tesla puts on more pressure. They deserve everything that is coming to them.

 

[CleanDemon]

The X and S were ripe for a price reduction. These cars aren’t significantly better or more well featured than the 3 and Y and are finally being priced appropriately. For those who paid thousands more, I‘m sorry.

 

[NewEnglander]

Those who lost money purchasing their cars over last 6-8 months should remember, this shall pass. We bought a used 2018 Model S in summer of 2022 and paid nearly 70K for it. After prices dropped steeply, we were as upset as many in this forum are. But today, I bought a Model X for 80K. All that bitterness is gone. And it also makes me realize that all price up and down is like stocks going up and down. As long as you bought a good stock and don’t have to sell it, relax. I am sure prices eventually will go up but may not go to absurd levels we saw back in 2021-22. For those who were buying cars at such inflated prices during COVID, including me, what were we thinking? Did we think the car had suddenly appreciated in value by 35k so that model s that was selling for 70K was now worth 105k?
I now believe Tesla S/X prices are in Line with what they should be. It’s 5K more than what it was back in 2019/early 2020. It would go up once newer Model S/x is launched in another few quarters. I would have to remind myself then that I got a good deal on my Model X and not regret buying an 80K car that does not have good noise reduction /isolation, perforated seats and other luxury upgrades that eventually Tesla would add.
Tesla has realized that the current versions of the car are not that level of Build quality as some other cars have e.g Porsche, Lucid, BMW EVs are much nicer built but none of them hold a candle to Tesla’s reliability and software combined. I had a reservation for Lucid Air with legacy pricing and also with Rivian. Both qualified for me for Tax credit as I had a binding agreement with both prior to IRA act. However, I cancelled both reservations, and today bought a Model X while fully knowing compromises I might be making. But I am willing to because my experience with used 2018 Model S I bought last year has been stellar. The car works, always, and better than any other car I have ever driven including Merc and Audi. Is it as smooth as my Audi no. Is it as quiet as my previous Merc E class no. But it still drives overall better than both.
So remember, you have bought a great car. You may or may not have bought it at a great time/price but the car is still great. Enjoy it and don’t look at the price for next few months. Like a goodstock, its value would be there for a long long time. Teslas are running flawlessly even after 250K miles. Mercedes, Porsche and Audis don’t.

 

[Kan-O-Z]

Meh, standard range were just a software locked long range vehicle. Battery did not need to be replaced. Market was probably very small for it, reason they just scrapped it all together after a few weeks. They did the same thing with the Model Y.

You’re not getting my point. The point is he didn’t think it through. He executed first and then thought about it later. He changed his mind after people had already ordered.

Do you know what it takes to introduce a new model even if it’s software locked? It’s a ton of work from specifications, developing, testing, marketing, etc.