Model S&X Price Adjustments

[PekkAmi]

Have you lost $65-$75k in one year from a single car, mostly due to the manufacturer? Until you have I would suggest not telling others how to feel.

Of course the beef is about the amount lost in short time. We all know cars depreciate and we all accept it.

We all come here to vent and maybe even form a plan to do something.

If you don’t like what you are reading I suggest letting this thread go and moving on.

I do thank you however as a general attitude in life that most of the things people get worked up and stressed over won’t matter in the long run. I seriously think this is a great approach to life.

But we get to vent for a few days while we get used to being “locked in” to our cars for the long run.

I lost over ten times that amount in one month from a single hedge of Tesla cars, mostly due the the manufacturer manipulating stock price. Until you have lost something in the ballpark in such a short time, you have no idea what loss means.

To be honest your loss of $65K-$75K in one year is peanuts. You won't understand this until you experience true loss AND come back to overcome it.

 

[NewEnglander]

I lost over ten times that amount in one month from a single hedge of Tesla cars, mostly due the the manufacturer manipulating stock price. Until you have lost something in the ballpark in such a short time, you have no idea what loss means.

To be honest your loss of $65K-$75K in one year is peanuts. You won't understand this until you experience true loss AND come back to overcome it.

Can’t agree more!

 

[Zer0t]

I do feel bad that people are losing large sums of money on a car. However, given Tesla’s history of price changes, unannounced, you either need to be a long term holder, 5 years or greater, or just lease them for 3 and walk away. I have a 2023 model s that I bought after the last price drop so I’ve lost a few bucks but I’ll either eat it or keep it for a while. I’m not trying to compare myslef to those who’ve been hit for 30 - 50 grand but if you’re concerned about short term price volatility and only plan on 2-3 years of owning the vehicle then leasing is the way to go.

 

[Zer0t]

I lost over ten times that amount in one month from a single hedge of Tesla cars, mostly due the the manufacturer manipulating stock price. Until you have lost something in the ballpark in such a short time, you have no idea what loss means.

To be honest your loss of $65K-$75K in one year is peanuts. You won't understand this until you experience true loss AND come back to overcome it.

Are referring to losses holding Tesla stock? I don’t see how that’s the same. Owning securities by its nature is speculative and owning a car is not. Your car ownership experience has a built expectation of depreciation. I believe the folks here are upset because 50% depreciation in a year is extremes. However, if that curve flattens out and it’s 48-50% over three years then they aren’t far off the lead residual—making it a better. But buying stock because you thinks going to continue to appreciate is why you buy. Unfortunately that doesn’t always happen.

 

[SpicyPaneer]

Tesla will never be like Costco. What if the price was raised after you bought?

But Costco has price match within 90 days

 

[SpicyPaneer]

No matter what the price is or how much it has dropped, just enjoy the car, I don’t miss the maintenance part of my ice cars and added expenses. I’ll be happy for the average of 10/15 years for all my cars. Only expenses I see is the tires short term. Other than that just enjoy the car, it Neeta paying $4/5 at the pump any day.

 

[Richbot]

I tried to warn you

 

[Richbot]

No matter what the price is or how much it has dropped, just enjoy the car, I don’t miss the maintenance part of my ice cars and added expenses. I’ll be happy for the average of 10/15 years for all my cars. Only expenses I see is the tires short term. Other than that just enjoy the car, it Neeta paying $4/5 at the pump any day.

Word. Our X is the family appliance, it does that job well, it makes the dad/chief mechanic/fleet manager's job easier day-to-day (total I've avoided almost a day sitting at a gas station compared to our typically circa 18-mpg V8-powered gas cars!), and it holds all six large mammals in our family, and our stuff. Can't complain much. If it depreciates like an expensive luxury domestic car, well, I saw that coming. Half-off in 3 years has been pretty typical for anything complicated and fancy north of $85k sold by any US manufacturer, for quite a while. The last three years have been weird, but nature is healing

As for hoping a car company won't try to make money on the backs of its luxury car customers, well, good luck out there, but if you think you've been hard done by, may I refer you to the current value of a 2021 Panamera or Cayenne Turbo S compared to its new price, or a 2016 Cayenne Turbo S on the day the 2017's dropped, and to what a carbon fiber center console vent button surround costs on the option sheet...

 

[Richbot]

You've never been to a military base and been swarmed by Hellcats

brought to you by USAA and the F&I department heh

I was at a bmw dealership recently servicing my wife’s car and the sales people over there were wishing the Bmw would do the same for iX. Drop prices…their argument was that an EV buyer is the online buyer who wants to pay and just drive off the lot. The “cash back” tactics of regular dealer to reduce price may not work with majority of ev buyers who don’t want to deal with dealer BS.

There were 10 sitting in the lot and with MSRP of 90k plus..no one is touching those. If the price was close to 60k, you would see some movement. Point being that Tesla is changing how we buy cars and dropping prices like they do is what other automakers should adopt.

This is the single most disruptive part of Tesla (and CarMax, and others doing fixed-price sales) for me. I'm not willing to play any amount of games to buy a car anymore. Tell me the price before I arrive, I'll check it out and let you know if I want it at that price, if I don't want it at that price, I won't show up and you're not going to convince me to show up.

GM (saturn), once again, had the right idea at the wrong time, 20 years too early

 

[Kan-O-Z]

I do get your point. It would bother me, I won't pretend it wouldn't, because you do lose some money that you otherwise wouldn't have when you go to sell.

I'm not sure what some expected Tesla to do, though; when supply chain was screwed and demand was absurdly high they raised prices to maximize profit--as other manufacturers have done (if the manufacturer hasn't their dealers have). Now they are lowering prices. Are they supposed to keep them high forever to offset some resale challenges of customers? They certainly cannot give prorated rebates or anything to recent-but-elevated-price customers.

If the complaint really is that they inflated prices before, why did people buy them? I wanted a model 3 since 2017 but as tesla kept cranking up prices I decided it simply wasn't worth it until recently.

There are people who paid $100k for an F150 lightning, or $10k over sticker for a tacoma recently or $5k+ for a rav4 hybrid because they lacked the patience to wait for a market correction. Or "market adjustment" on a Kia telluride. All of those people will be hosed when they resell.

TLDR: I get your irritation and it would irritate me, but as glib as it sounds ultimately this is a feature (or bug as some might consider) of a market economy. Just be glad you didn't buy an arizona house for $500k in 2006 and have to sell it for $300k a couple years later

Dealer overpricing is not the same comparison. Assume Tesla was sold through dealers. Now if Tesla priced the Plaid at $90k MSRP and the dealer decided to sell it for $140k, it is VERY clear to the consumer what is going on. It's pure dealer markup and it's in plain sight.

When one buys a Tesla, it's not clear that Tesla has marked up their own car any $50k. I can tell you that if Tesla sold through dealers and they were marking up their cars by $50k, I for one would not have any inclination of buying. I would wait it out.

What other manufacturer adjusted their MSRP price by huge amounts like Tesla? None.

Price gouging like no other car company or tech company and many on here support it. LOL.

 

[Richbot]

It’s been clear for literally decades that luxury cars are marked up by huge amounts

They will sell you a Macan for twice as much money as a mechanically identical SQ5 because it has a Porsche badge. Then in 3-4 years it’s lost an SQ5 worth of “value”. Except not really, because the value was never there to begin with.

The information for deciding if you were getting the value for money you were hoping for was out there when the X refresh debuted. None of the competitive set was $140k. More importantly, in November of 2020, Model X was $80k base price. It did not solve world hunger for $140k when optioned up a plaid, so, it was still worth about $80k, give or take. mass produced cars don’t appreciate and they don’t hold their value. The successor is an improvement for the same money. It’s a force of nature

I tried to warn everybody this would happen.

 

[Kan-O-Z]

It’s been clear for literally decades that luxury cars are marked up by huge amounts

They will sell you a Macan for twice as much money as a mechanically identical SQ5 because it has a Porsche badge. Then in 3-4 years it’s lost an SQ5 worth of “value”. Except not really, because the value was never there to begin with.

The information for deciding if you were getting the value for money you were hoping for was out there when the X refresh debuted. None of the competitive set was $140k. More importantly, in November of 2020, Model X was $80k base price. It did not solve world hunger for $140k when optioned up a plaid, so, it was still worth about $80k, give or take. mass produced cars don’t appreciate and they don’t hold their value. The successor is an improvement for the same money. It’s a force of nature

I tried to warn everybody this would happen.

The S plaid was $129k when it debuted. Now $90k so there’s that.

The LR is more spot on to where it debuted.

 

[posity]

What other manufacturer adjusted their MSRP price by huge amounts like Tesla? None.

It happens ALL the time, but is hidden from you. It is called Dealer Incentives. When Detroit wants to dump inventory but not change MSRP, they add Dealer Incentives and nobody but the dealer knows how much those are. It's completely hidden to avoid upsetting people that can't handle transparent pricing. Dealer incentives amount to many billions of dollars that the dealer puts in their pocket if you have not negotiated a lower price with a sleazy car salesman and their manager. This is why stealerships account for 3% of the USA GDP, while simultaneously adding no value to the sales experience. It is an outdated, massively dishonest way of doing business.

If you prefer dealing with the hidden pricing model offered by stealerships, and you like lining the dealer's pockets, and you like sitting at a salesman's desk while they empty your wallet for their useless contribution to the auto buying experience, then have at it. I'll take the open, honest and straightforward Tesla pricing model any day. And I will never set foot in a stealership again.

As Jack Nicholson so famously said, "You can't handle the truth".

 

[Kan-O-Z]

It happens ALL the time, but is hidden from you. It is called Dealer Incentives. When Detroit wants to dump inventory but not change MSRP, they add Dealer Incentives and nobody but the dealer knows how much those are. It's completely hidden to avoid upsetting people that can't handle transparent pricing. Dealer incentives amount to many billions of dollars that the dealer puts in their pocket if you have not negotiated a lower price with a sleazy car salesman and their manager. This is why stealerships account for 3% of the USA GDP, while simultaneously adding no value to the sales experience. It is an outdated, massively dishonest way of doing business.

If you prefer dealing with the hidden pricing model offered by stealerships, and you like lining the dealer's pockets, and you like sitting at a salesman's desk while they empty your wallet for their useless contribution to the auto buying experience, then have at it. I'll take the open, honest and straightforward Tesla pricing model any day. And I will never set foot in a stealership again.

As Jack Nicholson so famously said, "You can't handle the truth".

Nope I am not advocating dealerships.

Firstly I will compare Tesla to Apple. Direct sale to consumer, high tech companies that are innovative on all fronts. Apple is worth a lot more than Tesla btw. Have you seen iPhone prices go up and down monthly like a stock share? Does apple gouge consumers so badly that they can slash prices by 40% and still make profits? Does Apple just slash prices mid cycle when no new phone has come out?

Secondly the dealership stuff you are talking about is no where near the 40% examples set by Tesla. So what if something is incentivized by $5k. Big friking deal. With Tesla there is a car that was cut by $50k. Not even remotely in the same league.

 

[Richbot]

you lost me at cars are phones

cars are cars

But every year, apple releases a new model that obsoletes the old one and tanks its value and nobody cares

Every year, a few people are willing to pay for a Pro model that becomes a much cheaper base model a year or two later

every year, there has been price creep

Early adopters get to pay extra to have it early, as usual.

It also could be that model X just isn’t a very compelling product at the $100k price point, and that I agree with, which is why I was never a customer at that price point. Performance has never sold luxury cars near as well as luxury and exclusivity, and tesla has neither

 

[zoomer0056]

stealerships ...

... suck
My purchase with Tesla was painless. I knew right up front what I was getting and for what price. From Tesla direct to customer. There is no better way.

 

[Kan-O-Z]

you lost me at cars are phones

cars are cars

it’s not hard

Tesla is a lot closer to the Apple sales model than a dealership. And btw it’s about to change. Apple is indeed coming out with their car soon. For that I can’t wait. I’ve always loved Apples quality, attention to detail and just overall experience. Yes they are pricey but they are good. And certainly they’re doing something right as their net worth is like 3x Tesla.

 

[zoomer0056]

With Tesla there is a car that was cut by $50k.

What, there was an overnight reduction in price by $50,000, which car is that?

 

[Kan-O-Z]

What, there was an overnight reduction in price by $50,000, which car is that?

Not overnight but like cuts 4x in the last 6 months which amounts to $50k. Model S plaid

 

[zoomer0056]

Not overnight but like cuts 4x in the last 6 months which amounts to $50k. Model S plaid

Yup, Tesla is definitely a savvy player and they don't even need to advertise. I looked up a couple of things. Apple has been around for 47 years while Tesla has been around for 15 years. Apple's net worth is 3.8 times that of Tesla (2965 vs 777 billion USD). Fun fact, Tesla's net worth is 17 times that of GM (the EV leader ). GM has been around for 115 years. I only know what Google tells me.