Model S&X Price Adjustments

[Kan-O-Z]

Don’t buy a Mercedes or Audi then…. 22 EQS owners must be passed because MB offered up to $30K in incentives earlier this year and Audi did the same with the e-tron GT.

Tesla cuts MSRP but carmakers offer insane incentives to move metal.

Tesla was an aberration in the last few years. EVs depreciate 50% in 3 years. Nobody should be buying or leasing an EV and expecting old school Toyota resale values (new Toyota are sh*t and will most likely depreciate).

Incentives and sales are just that. Short time things to push sales. It doesn’t cause long term damage to the value of the car. If Tesla was offering a limited time $30k incentive that would have been way better. You know why? Because once the incentive is over then all the prices go back. Used cars also go back to their values.

A promotional offer is limited and a manufacturer may be willing to not make as much profit for a short period of time. BUT if a manufacturer can cut its REGULAR price by $40k it means they were gouging. It means they can still make a great profit even after cutting $40k.

I keep stating this example. If Apple cut its $1000 iPhone normal pricing to $600 normal pricing what would people think? Oh an no new iPhone has come out?

 

[Gabbman]

Great point. I leases a bmw i3 for 199 a month for 2 years. The price made it worth doing. The range was horrible. But I liked the car.

 

[SpicyPaneer]

Good luck. I have a feeling he X price drop had the intended effect, and maybe even too much. The price of a yoked Model X has effectively increased $1250 since the price drop already.

They are detering from Yolk, I’m not interest in the yoke as is. My setup UR Plaid with 20’s is $89.990 + $1,390 for destination fee for out the door.

 

[Tiger]

Incentives and sales are just that. Short time things to push sales. It doesn’t cause long term damage to the value of the car. If Tesla was offering a limited time $30k incentive that would have been way better. You know why? Because once the incentive is over then all the prices go back. Used cars also go back to their values.

A promotional offer is limited and a manufacturer may be willing to not make as much profit for a short period of time. BUT if a manufacturer can cut its REGULAR price by $40k it means they were gouging. It means they can still make a great profit even after cutting $40k.

I keep stating this example. If Apple cut its $1000 iPhone normal pricing to $600 normal pricing what would people think? Oh an no new iPhone has come out?

The writing is on the walll, S/X are overpriced for what you get for the money.

Come 2024 and prices will go even lower if they plan to significanlty move inventory.

 

[EatsShoots]

I keep stating this example. If Apple cut its $1000 iPhone normal pricing to $600 normal pricing what would people think? Oh an no new iPhone has come out?

Here is california's definition of gouging:

"What is consumer gouging?

Price gouging refers to sellers trying to take unfair advantage of consumers during an emergency or disaster by greatly increasing prices for essential consumer goods and services."

I fundamentally disagree with the concept of gouging on luxury goods. I can buy a handbag from target for $35 or spend $3400 on a louis vuitton. Is that gouging? 95%+ of the population cannot afford a model s or x, so there is nothing essential about these. This is a bit like complaining you spent $10k on a first class ticket to Europe last month and this month it's $6k.

People saw the price of these cars skyrocket. I don't know why one should be super surprised to see them crash as well. That is generally what follows unusual price appreciations.

 

[etekberg]

They are detering from Yolk, I’m not interest in the yoke as is. My setup UR Plaid with 20’s is $89.990 + $1,390 for destination fee for out the door.

Plus $250 order fee, minus referral credit which is now only $500. So effectively $500 more than the day after they dropped the price.

 

[Ethan Ryczek]

“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.”

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.

Lease?

 

[Gabbman]

Incentives and sales are just that. Short time things to push sales. It doesn’t cause long term damage to the value of the car. If Tesla was offering a limited time $30k incentive that would have been way better. You know why? Because once the incentive is over then all the prices go back. Used cars also go back to their values.

A promotional offer is limited and a manufacturer may be willing to not make as much profit for a short period of time. BUT if a manufacturer can cut its REGULAR price by $40k it means they were gouging. It means they can still make a great profit even after cutting $40k.

I keep stating this example. If Apple cut its $1000 iPhone normal pricing to $600 normal pricing what would people think? Oh an no new iPhone has come out?

Agreed. That’s my point

 

[Q-ship]

Incentives and sales are just that. Short time things to push sales. It doesn’t cause long term damage to the value of the car. If Tesla was offering a limited time $30k incentive that would have been way better. You know why? Because once the incentive is over then all the prices go back. Used cars also go back to their values.

A promotional offer is limited and a manufacturer may be willing to not make as much profit for a short period of time. BUT if a manufacturer can cut its REGULAR price by $40k it means they were gouging. It means they can still make a great profit even after cutting $40k.

I keep stating this example. If Apple cut its $1000 iPhone normal pricing to $600 normal pricing what would people think? Oh an no new iPhone has come out?

The automotive ecosystem is not accustomed to dealing with abrupt large swings in MSRP. It is difficult for financing institutions, insurance companies, and those who deal with buying and selling used cars. People hate ADM’s, but they are a way to handle situations where demand exceeds supply while avoiding large swings in the MSRP. On the other side of the coin, rebates and incentives serve the same purpose when supply exceeds demand. I bought a Lincoln Navigator in 2015 where the dealer took $10,000 off the MSRP with rebates and incentives. The MSRP on the Monroney did not change, however.

If you bought an MX at higher previous prices, this is the absolute worst possible time to sell. Do whatever you can to not have to sell the vehicle. Thankfully, ours is now an extra vehicle (just took delivery of an R1S), so we will not need to put as many miles on the MX. I imagine the number of used refresh MX’s will decrease, people will buy more new ones at the lower prices, supply should drop, and prices will likely rise for new and used vehicles.

 

[SpicyPaneer]

Plus $250 order fee, minus referral credit which is now only $500. So effectively $500 more than the day after they dropped the price.

If you concerned about $500, then this is not the EV in the price range for you.

 

[zoomer0056]

Here is california's definition of gouging:

"What is consumer gouging?

Price gouging refers to sellers trying to take unfair advantage of consumers during an emergency or disaster by greatly increasing prices for essential consumer goods and services."

I fundamentally disagree with the concept of gouging on luxury goods. I can buy a handbag from target for $35 or spend $3400 on a louis vuitton. Is that gouging? 95%+ of the population cannot afford a model s or x, so there is nothing essential about these. This is a bit like complaining you spent $10k on a first class ticket to Europe last month and this month it's $6k.

People saw the price of these cars skyrocket. I don't know why one should be super surprised to see them crash as well. That is generally what follows unusual price appreciations.

Yup!

 

[etekberg]

My 22 myp was totaled from rear end collision, recovered $62k from insurance company, I paid 70k for the car, new myp is about $53k now. But I’m hoping the X will still drop or offer 1/2 off FSD for me to bite for a X Plaid.. cash on hand, just waiting for the right time. Till then money is 6 month cd @ 5% interest.

Good luck. I have a feeling he X price drop had the intended effect, and maybe even too much. The price of a yoked Model X has effectively increased $1250 since the price drop already.

If you concerned about $500, then this is not the EV in the price range for you.

I think you've been sniffing too much pepper Mr. Spicy. You are the one waiting for a better price. My point is further price drops are doubtful and the price has, in fact, gone up a bit since the drop. My X plaid was ordered the day of the drop and is estimated to be delivered next week.

 

[SpicyPaneer]

I think you've been sniffing too much pepper Mr. Spicy. You are the one waiting for a better price. My point is further price drops are doubtful and the price has, in fact, gone up a bit since the drop. My X plaid was ordered the day of the drop and is estimated to be delivered next week.

I just want the front camera for front visibility and I don’t mind paying for it if it were an option.

 

[voxel]

Incentives and sales are just that. Short time things to push sales. It doesn’t cause long term damage to the value of the car. If Tesla was offering a limited time $30k incentive that would have been way better. You know why? Because once the incentive is over then all the prices go back. Used cars also go back to their values.

A promotional offer is limited and a manufacturer may be willing to not make as much profit for a short period of time. BUT if a manufacturer can cut its REGULAR price by $40k it means they were gouging. It means they can still make a great profit even after cutting $40k.

I keep stating this example. If Apple cut its $1000 iPhone normal pricing to $600 normal pricing what would people think? Oh an no new iPhone has come out?

In the end... incentive or MSRP price cut is about the same result. Barely used EQSes are significantly discounted today just like barely used Model Ses were discounted in mid/late 2022 when used 3/Ys were more than MSRP. Mercedes is still discounting because demand is weak for their overpriced EVs. I met the FL Mercedes regional rep at an EA location last weekend and had this exact discussion.

Doesn't matter if Mercedes sets the MSRP to be $120K or $200K or $95K. The market (demand) determines the price. Jeep plays this game where they jack up the MSRP but discount their Wranglers, Grand Cherokees by 8% plus rebates. I know because I still own a GC and because of $10-13K in incentives - the resale value has plummeted worse than the Model Y I traded it in for (doesn't matter... I needed a gas car) and yet the MSRP is exactly the same as it was a year ago.

I checked TrueCar and it seems folks are at least getting 13% off EQSes plus the $7500 incentive plus some Mercedes rebates. $30K off seems to be about the norm. I do feel sorry for EQS owners who paid MSRP a year ago or even this year (and didn't know about incentives).

The demand for S and X is/was much lower than supply even back in mid-2022. Zero wait times. Used prices 20% lower than new. Tesla's price cuts are to spur demand and we will see if it actually works.

 

[Richbot]

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?

With the EV9's frunk and performance targets, I still wouldn't say it's a direct X competitor, but then the doors won't bonk you on the head, so, potato potato. Definitely going to put a ceiling on anything electric with 7 seats.

 

[stuartmded]

Wonder if some clever lawyer can figure out a theory for a class action law suit?

Eric33432 & Kan-O-Z

I couldn't agree more. I believe there is a class action suit. Let's even add the fact that we might have paid for FSD as it wasn't transferrable at the time, and now it is. If you take a 30k price decrease with 12K FSD double payment (42k) x 5000 owners (estimate) = $210 million. That's a big number.

I was hoping that there would be an attorney on this website that this could peak interest in.

Thanks for listening.
Stu

 

[Richbot]

Miraclemax.gif