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Model X Price vs Cost of Oil

Discussion in 'Model X' started by Local host, Dec 16, 2014.

  1. Local host

    Local host Member

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    I am curious on everyone's thoughts regarding the effect of cheap oil on the price of the model X (ands s) given oils massive price decline.

    Over the years I have speculated on what my model x will cost me and have come up with a price of around $102,000.00. This is my threshold for value. Anything above that and I feel that my money is better spent on other things.

    What I am worried about is that the price for the X will actually be 15% to 20% more than this, mainly because the Canadian dollar has lost so much against the US. But I now wonder if Tesla can implement price increases given how cheap gas is now. I suspect that many other buyers are looking at this as a factor in their buying decisions as well.

    The relatively cheap cost of running the X compared to an ICE made the purchase far easier. I am not sure that this can be included as a factor anymore.
     
  2. nwdiver

    nwdiver Active Member

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    I think the odds of oil influencing the pricing of the X is ~0%... unless you live in a country where the currency is tied to the price of oil. Sorry Russia :crying:

    Until the Model 3 gets released most of Teslas key demographic is more concerned with saving oil than saving $$$.
     
  3. Saghost

    Saghost Active Member

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    I don't think the oil prices affect Tesla's decision making much at all - they know they still have market for every car they can build, for now and likely some time into the future.

    I wouldn't let the oil prices affect my thinking, either, because the current downward trend is largely the result of politics and there's little doubt in my mind that in a year or two the prices will be back where they were, or higher. (No bets on six months from now, though - it might take a while.)
    Walter
     
  4. adiggs

    adiggs Active Member

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    For me as a Model X buyer, the price of oil has 0% impact. The only vehicle that would entice me to spend north of ~$30k (and probably more like $15 or 20k) on a car is Tesla in general, and Model X in particular. I happen to have the financial ability to make the choice, and for me, it's a moral imperative to further reduce my contribution to carbon emissions and climate change. My "sacrifice" also happens to be a lot of fun, so the burden isn't onerous - I like that.

    Gas could be $1/gal and I wouldn't use that as an opportunity to buy an alternative big vehicle.
     
  5. ModelX

    ModelX Member

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  6. Aljohn

    Aljohn Member

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    History is repeating. Recall just a few years ago, when GM, Ford and Chrysler faced bankruptcy they pledged to produce Fuel efficient vehicles and stop making larger gas guzzling SUVs. Not that long ago, one couldn't sell a large SUV or Pick-Ups while gas hovered about $4-5/gallon. Fast forward an few years, SUVs are just as large, as are Pick Ups. There were some minor fuel efficient improvements, but by-large, we are now using more fuel than ever before and producing more CO2.

    Maybe my age (over 60), that causes me to notice these short-term cycles and emotions. At some point, we need to stay the course by maintaining the commitment to the planet, and need to support efficient public transportation. Here in Atlanta, the highways are now 10 lanes wide... a lane added every few years resulting still in 30 mile long parking lots with one person in most cars.

    Crude's price is down toda -- this will change again in a few months. The cycle will repeat, repeat and repeat. We are doing the same thing every few years, and expect a different outcome. Like the dash of the P85D.... INSANE!
     
  7. Nubo

    Nubo Test Mule

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    I'm not sure the price of gasoline is a prime driver for people buying $100K cars. The less expensive EVs may suffer a bit but so far seem to be doing ok. Maybe consumers have learned something over the last 40 years and won't be suckered as easily.
     
  8. Ladoe00

    Ladoe00 Member

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    I understand OP's points as I also live in Canada and our currency is not doing well right now. But I am old enough to know two things that will never change:
    1- Banks will ALWAYS make money.
    2- Gas price will ALWAYS go up.

    of course short term those might not be true, but long term history has proven it. It is only a matter of time before they settle their dispute and we start seeing the same price as a couple of months ago. Of course I would feel a whole lot better if it would be 2$/L, but you have to do this (buying a Tesla) for its green aspect, being a pioneer for those who can't afford one right now. Model S and model X buyers are paving the way to model 3 buyers. Without us there wouldn't be any model 3. Don't get me wrong, I'm buying an X for my own entertainment, but I also do it for my kids, hoping this will be the start of a switch to renewable energy. ICE vehicles cannot be part of our future.
     
  9. coshoni

    coshoni New Member

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    Wait and see what gas/petrol prices are when the model X eventually gets released in 9-12 months. Agree as per previous posters that most current Tesla customers are not sensitive to fuel costs.
     
  10. JohnQ

    JohnQ Active Member

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    While I support the sentiment, please be careful of facts. Gasoline consumption has declined since 2007.

    US Gas consumption.jpg

    2013 consumption was essentially flat from 2012 at 3.20 billion barrels.
     
  11. Earlian

    Earlian Member

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    You are not alone

    What the U.S. saved 08-12, the Chinese easily increased...

    Global Oil Production & Consumption since 1965
     
  12. JohnQ

    JohnQ Active Member

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    First, fantastic infographic. Thanks for sharing. And I agree that it has to be looked at globally. I read the posters comment as focusing on the US given the reference to fuel cost and vehicle preference trends so responded within the same boundaries.
     
  13. Breezy

    Breezy Member

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    A moral imperative to buy oneself a luxury vehicle? I'll have to see if my wife agrees with that reasoning.
     
  14. Ocelot

    Ocelot Member

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    Agreed on the Canadian dollar front. 100 000 US is 116 000 plus today. essentially we are going to be paying 20% more than if the x was released at time of deposit. it is already at the border of financial feasibility, for myself and with very little gas savings (fill up once every three weeks anyhow) unsure if can afford final purchase. In addition I find the modelling scenarios out there, by far over-estimate the cost of an ICE. not including tires over the past five years or so i average about 500 bucks a year for maintenance and repairs of my 2007 car.

    This is my extremely round about way of saying, it comes down to excluding all calculations of projected savings/maintenance/resale value, the bottom line for a financially-wise decision is simply, can I afford it regardless of everything else? Problem is i usually do not base my decisions on finances. :biggrin:
     
  15. adiggs

    adiggs Active Member

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    Good luck with that Breezy. You have to say it with feeling :) (I had to keep repeating it for 6 months, and be obsessively sifting through the used Roadster market for that time, to indicate sincerity).


    If it helps, the moral imperative is driving electric - the luxury vehicle component is an onerous burden that must be suffered with dignity. Maybe that will help? :)

    For a variety of reasons, the non-Tesla alternative BEV choices would feel constricting in what we would be able to do. As a practical matter, any of them would be fully functional for my routine errands and work commute. If Model 3 was shipping in a CUV format, that'd be my vehicle of choice (1/2 off, and all the functionality that I need!). Waiting another 3-5 years (after waiting 2+ years so far for Model X), though I'm able to make it happen pragmatically, becomes increasingly annoying each time I need to get into the ICE car that's still in the garage. H'mm - that sort of sounds like a Model X lease and early Model 3 reservation, doesn't it?


    I also commend solar, wind, and other forms of renewable power to you. Generating far more solar power from our rooftop solar system than goes into the electric sports car is a very good feeling. It's not a solution all by itself, but it's all within my power to do, and it's something my wife and I can do to lower our contribution to the problem.
     
  16. PGeer

    PGeer Member

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    I am now, according to polls, a minority in this nutty nation by agreeing with the consensus of the vast majority of climate scientists that global warming is a huge threat. From that perspective, I see falling gas prices as piling on to that threat, especially if it in any way reverses the falling consumption rates and increases the chances that big oil will succeed in using up every last drop in the ground.

    I have always seen buying a Tesla as a win/win (for me and the environment), but with falling oil prices, I feel even stronger about supporting the company's mission. The only way the world will wake up is if the economics and the full suite of incentives make non polluting fuels more desirable. We certainly can't wait for Congress.
     
  17. Zythryn

    Zythryn MS 70D, MX 90D

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    Even if you completely ignore the environmental and national security issues, I would still be driving our Model S (and planning to purchase a Model X) even if gas were FREE.
    There is simply no comparison to driving electric. The drive quality, responsiveness and torque simply can't be matched.
    Add to that the more convenient fueling, and more pleasurable road trips, well, price of fuel is currently just frosting on the cake. If electricity were costlier it would not deter me from driving the better vehicle.
     
  18. gavine

    gavine Petrol Head turned EV Enthusiast

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    Same here....
     
  19. Nevek

    Nevek Overt Member

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    "Suffer with dignity". I like that, I'll use it when I finally write the check for the MX!

    I also have solar on the roof that should cover about 2 cars worth of power annually. It's great to doubly enjoy a sunny day, and with no moving parts, it is one of those things that just works.
     
  20. bluenation

    bluenation Member

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    S and X buyers are for the most part, upper class, or the 1% percent, if you will.

    and if you are not....well, as a poster above said, not all purchase decisions are made rationally (aka, no more than 30% of your yearly income)
     

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