Model S&X Price Adjustments

[etekberg]

I think what people don't realize is this is just the cars seeking its market price given the demand, the current money supply, and the volume of production. The people arguing against it are really arguing that Telsa should cut prodcution instead to keep the supply low, and thus the keep the price higher.

Tesla doesn't control the price. Just like you don't control the price of your used car by asking more for it.

 

[ithinkmac]

maybe it's all just timing. I got lucky. Traded in my '21 X for a '22 X, I got the '21 in '20. Drive it for 2 years. Made $3k on the trade in. Was pretty happy. Was going to trade in my '16 for the '21 when it was time to purchase, but Tesla only gave me $50k for it, so I decided not to trade it in. Waited a year and sold it to a friend for $67k. so both old X sold for way better than what I anticipated.

-ThinkMac-

 

[Zer0t]

Always wanted a Porsche and was looking at the new EVs coming. Interested in both the Cayman EV and Macan EV. Now you know why I’m pissed at losing about $60-$65k in one year! That will now have to wait a while.

All these people that say well don’t you know your car depreciates. Well duh everyone knows cars depreciate. Just not like a Tesla recently. Nothing depreciates like a Tesla as of recently.

Anyways one day I’m gonna have a Porsche….

The dealer I bought mine from has been talking about the Macan EV for quite a while. I haven’t read anything about so I’m not familiar with the timeline on it. Should be good if it turns out as well as the Taycan.

 

[EatsShoots]

Thanks I know you are trying to get me to see the positive side. I am not going to rejoice if Tesla raises its prices. It would mean they will reduce it again and someone will lose out later again. Price gouging is not good practice. This is why we all hate dealers.

I guess in a nutshell I was hoping that buying directly from Tesla would be more like buying a TV, phone, computer or an appliance. Prices are fairly steady (except sales or new versions coming to market). You don’t see typically see a new “regular” price change week to week. You also don’t see huge price gouging when demand is high.

Tesla prices have never been steady, though.

Spring 2020 a sheet of OSB was $11.50 at Home Depot. It peaked at $45. Down to $13 last year, and now up to $20. Was Home Depot gouging?

The average price of a new car sold has gone up by 20% from $40,000-$48,000 in the last two years. The thing is Tesla is the only manufacturer who has actually dumped the prices again. Toyota keeps jacking up prices *and* you have to wait months for your vehicle.

 

[CTruck_BMW]

Tesla prices have never been steady, though.

Spring 2020 a sheet of OSB was $11.50 at Home Depot. It peaked at $45. Down to $13 last year, and now up to $20. Was Home Depot gouging?

The average price of a new car sold has gone up by 20% from $40,000-$48,000 in the last two years. The thing is Tesla is the only manufacturer who has actually dumped the prices again. Toyota keeps jacking up prices *and* you have to wait months for your vehicle.

Agreed. Considering inflation, Tesla selling the Model S for 75K now is almost equivalent to 60K in 2019-2020, yet without increasing their price by a single dollar if they are at 75K now!!! I strongly feel they've reached the limit as to how low they can go and still convinced prices will go up again soon. They may drop, I know I know, but I don't see that happening for too long.

 

[Richbot]

...you think a mass produced non-GT Porsche is a collectors item?

i know what i got

I think what people don't realize is this is just the cars seeking its market price given the demand, the current money supply, and the volume of production. The people arguing against it are really arguing that Telsa should cut prodcution instead to keep the supply low, and thus the keep the price higher.

Tesla doesn't control the price. Just like you don't control the price of your used car by asking more for it.

i know what I got

 

[MоdelPleb]

Agreed. Considering inflation, Tesla selling the Model S for 75K now is almost equivalent to 60K in 2019-2020, yet without increasing their price by a single dollar if they are at 75K now!!! I strongly feel they've reached the limit as to how low they can go and still convinced prices will go up again soon. They may drop, I know I know, but I don't see that happening for too long.

As long as there's no significant order backlog, I don't see an increase in prices. They've been dropping across the board the entire year. The economy is trending towards a recession, so people are saving or have exhausted their savings. It's a tough time to be selling cars, especially new ones.

 

[EbS-P]

Good reading for the past 5 pages. Couple thoughts…. The MX doesn’t have much direct competition. Or at least it didn’t. I think that’s changing now. The tax credit cap set the target for the price cut. Why only cut it 10k if we cut it all the way down to $79,990 we effectively cut it another 7,500. This isn’t free market economics. This is government regulation/subsidies in action. Time will tell how this plays out. A 5 seat MX has more in common with many other available vehicles than the 6 or 7 seater.

What other luxury SUV with volumes above 5-10k units a year in the the US could qualify? (The list in my brain is probably out dated but I know it’s not long)

Honestly it’s a direct shot at KIA and the EV9 and Vinfast.

While I’m sure the new pricing hurt some owners how many more owners will it attract?

 

[Gabbman]

Ive read many comments about this . I don't agree with most of them . I think most of us expected normal depreciation yes that comes with the purchase of any item but Elon raising and dropping prices whenever he wants is not depreciation. its a price cut and it undermines his "everyone pays the same msrp pricing model" . The reason the one price no dealer haggling worked was because the price was the price and you weren't worried that a better price could be had. so you took comfort in buying because of it. no the way he's doing things will cause a lack in consumer confidence and eventually cause a decline in sales and destroy any chance of repeat business. I have a 22 MYP. I like the car but I personally would never buy another Tesla product because of the constant price changes and as much as I like the car the fact remains that the moves they made with regards to pricing are crazy . other manufacturers offer rebates and incentives to cut the price without destroying the resale market. Before he started the price juggling I was just about to jump to a model x im so happy I didn't. I went from a model 3 to a model y . and would have kept going if it were normal depreciation. Anyone that knows the car market or has tried to sell . they know not many dealers will buy or take a Tesla trade. so I think his price bouncing is bad for the brand. I would have suggested keeping the price the same and including FSD or other options if he wanted to push sales . If he wanted to cut prices he should have made an entry version more stripped down . from a business point of view I think the move will hurt the companies auto sales in the long run.

 

[Gabbman]

Name a car dealer that would offer a post sale price adjustment after a markdown?

but this wasn't a mark down it was a entirely new starting price.

 

[Gabbman]

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.

I'm not excited either, I just bought a used 2020 MS month and half ago from Tesla and would love to sell and upgrade to newer S but these price drops are making it hard to get any kind of value out of it. We didnt know they would offer the rear screen in the M3 so they are price adjusting along all their cars as well as for cars with competition. I figured the refreshed M3 would cause some price adjustments but didnt realize it would affect upper models as much. Part of it is im sure they were getting flack for offering the mid range S for 10,000 with same battery pack just locked things down, so they probably decided to just keep full options and keep the same "mid range" price. which if you look at it that way is a great deal.

TBH I knew it was coming and had thoughts of maybe I should wait but I didnt listen to that thought and just went for this killer deal. lol oh well. cant blame anyone but me.

It happens for recent buyers, it sucks but it will continue to happen. Just have to try and get in at the right time.

I do love my car but would love to get refreshed MS or even the new Highland. anyone want to buy mine so I can buy one of those.... thought so.

I get it but apple has basically made sure everyone knows through (mysterious leaks) what's coming and when . Nobody is ever surprised by that and also when apple wants to increase or lower price they do it with a new (version) pro max plus supreme. Elon could have just renamed it model 2.5 got rid of the roof or offered a smaller screen . Or he could have renamed it 3.5 super and tossed in all options. complanies d out for a reason . yo keep the people that already purchased from feeling ripped off lol

 

[etekberg]

I get it but apple has basically made sure everyone knows through (mysterious leaks) what's coming and when . Nobody is ever surprised by that and also when apple wants to increase or lower price they do it with a new (version) pro max plus supreme. Elon could have just renamed it model 2.5 got rid of the roof or offered a smaller screen . Or he could have renamed it 3.5 super and tossed in all options. complanies d out for a reason . yo keep the people that already purchased from feeling ripped off lol

And it would have had exactly the same effect to the value of used cars, and that is, understandably, what the real complaint is. Everyone knew the Model X price would drop, your "leak" if you will was rising inventory levels. That was the market signaling that the real market value of the vehicle and the asking price were too high for current conditions. In stock market speak, the bid and the ask were too far apart and no stocks were being traded.

 

[zoomer0056]

from a business point of view I think the move will hurt the companies auto sales in the long run.

Making products more affordable helps business.

 

[Gabbman]

Making products more affordable helps business.

To a point but not if you screw your original customer that was able to pay and did pay 25-30 percent more for the product. You gain a different customer base but lose a bigger piece.

 

[MоdelPleb]

To a point but not if you screw your original customer that was able to pay and did pay 25-30 percent more for the product. You gain a different customer base but lose a bigger piece.

Telsa needs to sell cars, not store them in warehouses. With production scaling, these cars need to find customers. There are more people without Teslas than with them.

 

[posity]

You gain a different customer base but lose a bigger piece.

Where do you get data to support such a claim? Makes no sense.

Let's say you lose 10% of your existing customers due to lowering price, but your existing customers keep their cars for six years (there is actual data for that statistic). So essentially the existing customers were not your sales base anyhow. And by lowering price you substantially increase the number of new customers than can afford your product. This is a no brainier decision: of course you do what you can to attract new customers and a lower price is as good as it gets to bring them in.

Existing customers are not where the money is for a product that is only replaced every six years. It's all about new customers and that great price is very attractive. Especially for a product as desirable as a model x.

 

[NewEnglander]

Where do you get data to support such a claim? Makes no sense.

Let's say you lose 10% of your existing customers due to lowering price, but your existing customers keep their cars for six years (there is actual data for that statistic). So essentially the existing customers were not your sales base anyhow. And by lowering price you substantially increase the number of new customers than can afford your product. This is a no brainier decision: of course you do what you can to attract new customers and a lower price is as good as it gets to bring them in.

Existing customers are not where the money is for a product that is only replaced every six years. It's all about new customers and that great price is very attractive. Especially for a product as desirable as a model x.

To add to what @posity mentioned, the pain of existing customers is momentary. Ultimately, they will end up buying another Tesla at a cheaper price. When you don't find other cars with same value proposition, you have to buy Tesla. Tesla wont be hurt unless it screws up on product quality and value for money offering.

 

[Jimboy435]

To a point but not if you screw your original customer that was able to pay and did pay 25-30 percent more for the product. You gain a different customer base but lose a bigger piece.

I disagree with this…you don’t lose customers if the product they bought goes cheaper. You lose a customer if the product you bought doesn’t perform as per your expectations. If you bought a 100k model x in January and you were extremely happy..and the price goes down, you may be bitter but highly doubt Tesla will lose customers because of that

 

[Gabbman]

Well
For Tesla sake I hope your all
Right. Personally i won’t buy another Tesla no matter what they do. I don’t own stock in the company or have any other interests. Just sharing my opinion. Nothing is fact based. Just my opinion. Either way I think it was a bad move for Tesla to do.

 

[zoomer0056]

Well
For Tesla sake I hope your all
Right. Personally i won’t buy another Tesla no matter what they do. I don’t own stock in the company or have any other interests. Just sharing my opinion. Nothing is fact based. Just my opinion. Either way I think it was a bad move for Tesla to do.

Jeeze Louise, that's just silly to get PO because the car price is lowered. That means no one will buy anything unless it's more expensive. Silly goose.