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Model Y - Gigafactory Texas Production
- Thread starter Ron J.
- Start date
Tesla never had prices at their current high points except as a result of an unusual chip shortage, vehicle shortage, low interest rates, sky high gas prices, super inflation, and overhot economy. All those dynamics evaporated in the last few months, so it might make sense to return prices to the prior "pulled it off for years" price levels.
Mrbrock
Active Member
No, check your math. $65,990 + $3,000 (7 seats) = $68,990 - $7,500 = $61,490. Quite a bit more than $56,600.
ZenRockGarden
Active Member
Yeah - I totally don't see the panic.
Tesla has cheaper costs than anyone. Hyundai is the only one even close and they're a ways behind.
Tesla is charging like $10k more in inflation-adjusted dollars for their cars right now because that's what the market would bear. The market is correcting and Tesla is in the stronger position of anyone to react rapidly where needed, while still generating profits on every single car.
That's a "problem"?
Nop. It's correct. It was in relation to Tesla lowering prices for all models by ~$5k.
Where is this chart from? Did you make it or is it from some outside source? I'd like to be able to reference where it's from.
Mrbrock
Active Member
No, MY AWD is 61,990. Not 60,000. Lowering 5k is 56,990, still above the threshold for 5 seater.
white/black 5 seat with inductions has $2k in options. 63990-2000=61990.
What you are suggesting is lowering prices to back to what they were many months ago, then dropping an additional 5k. You can’t use current pricing for LR and P but months old pricing for AWD to justify your argument. Or you need to change your argument to be that Tesla needs to lower prices by 7k so one of the cars meets the threshold. But as stated before, that would leave a $11,500 net price difference between the AWD and the LR for 5 seat versions.
Before the IRA, Tesla was fighting against other manufacturers who had the tax credit and they did not. What has changed now that makes everyone think Tesla will change tactics? Just because people were waiting to buy hoping for the $7500 rebate doesn’t necessarily mean they don’t think Tesla is worth the extra money over Id.4 or other suvs that qualify. The closest competition is the Mach E and it doesn’t qualify.
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dhanson865
Well-Known Member
Disqus Profile - aldrichbautista is the creator, you could go to the wayback machine (web archive) to confirm prices if you want to verify a specific point. I've not seen any errors on it and it's been discussed in other threads, no one has ever mentioned an error on it.
I don't think he has a profile on TMC or runs any site, seems to be an engineer from California if you google the name.
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Difference is base Tesla M3LR is $1500 from being below limit. Just makes to much sense to give consumers an option to use that credit. In previous years Tesla was over the 200k vehicle cap so there wasn't any action they could take to get below that limit.
Tesla gave out a $7500 discount plus free supercharging to ramp up Q4 sales. It seems rather obvious they will give a $1500 discount or more to do the same.
U r right about $60k was original price for AWD, than Tesla raised it to $62k.
I am using my suggested (guessed prices of $55k, $61k. Not sure where u r getting confused.
AWD: $55k , $47.5k (with Tax credit)
LR: $61k, $56.5( with Tax credit, 3 row)
This is my suggestion/prediction. May or may not happen. It's just what I think. By no means it's perfect.
The only thing I can think of/add is simply, inventory (supply/demand). From that website, there are more Model 3/Ys than recent times. Them dropping $7.5k in latter part of Dec will make people hesitate to buy now unless the IRA is changed or it's a staring contest on who needs the car more or Tesla wants the sale.
pdx_m3s
Active Member
Elon has said multiple times, and is evidenced by price-cuts in China, that Tesla will prioritize volume (i.e. keeping its factories running at capacity) over pricing/margins. Given that the U.S. has very high Model Y installed productive capacity, it's very likely prices will be coming down so Tesla can keep the factories running near capacity.
The tax credit is not a 1:1 offset to vehicle price like the Dec'22 discount. It cannot be rolled into vehicle financing and many can't take advantage of it. Plus there's just the delayed gratification/time value of money element in the fact that it doesn't come until up to 12 months later.
Mrbrock
Active Member
Exactly, which is why Tesla is under less pressure to drop pricing to compete with the IRA offset. They are pressured by their increased run rate compared to demand that seems to have plateaued due to inflation.
there are several reasons, not just one. everything is part of a equation to a degree.
Also, many people reserved MY with the "fear" that prices are going up and would be unreachable OR to flip to make profit.. they all stopped taking deliveries... now that they have seen Dec discounts... they wouldn't take delivery unless they abdsolutely NEED a car.
they all would have taken deliveries at 66k if current price is 75k and would have flipped it... or just be in joy for a DEAL they scored...
America runs on Discounts when there is surplus.
Also, many people reserved MY with the "fear" that prices are going up and would be unreachable OR to flip to make profit.. they all stopped taking deliveries... now that they have seen Dec discounts... they wouldn't take delivery unless they abdsolutely NEED a car.
they all would have taken deliveries at 66k if current price is 75k and would have flipped it... or just be in joy for a DEAL they scored...
America runs on Discounts when there is surplus.
pdx_m3s
Active Member
It’s not black and white. There’s multiple factors. Obviously Tesla is dealing with reduced demand here and abroad (this is not unique to Tesla). Demand has not plateaued, it has dropped considerably. If you can’t admit this, you’re not being honest.
CyberGus
Not Just a Member
...or maybe I've not seen the evidence that makes you so certain?
Inventory for new and used cars have skyrocketed. There's a video on Manheim auctions where 75K used cars are listed (normal is 15K).
New car inventory has risen too. Incentives will begin again for most carmakers as they struggle to sell cars over the next few months.
Tesla having inventory would not be surprising at all.
New car inventory has risen too. Incentives will begin again for most carmakers as they struggle to sell cars over the next few months.
Tesla having inventory would not be surprising at all.
VW dealership had a lot of models on lot and was very disappointed I didn't go through with ID4 reservation. 8 months ago they'd have been esctatic because they could've added big market adjustment fee. Back then their lot was empty.
Go look at new inventory on Tesla webpage. Dozens of models in my area where 8 months ago there was none while having a many months long waiting list.
The insane car market in 2021-2022 was something I've never seen in my lifetime. Seems very reasonable when all those unusual confluence of factors disappeared that prices would fall back. Sellers that don't discount prices will have lower sales and inventory building up.
On the flip side Tesla and all auto manufacturers decreasing cost of materials as well as supply chain constraints easing is making production cheaper.
X Fan
Active Member
ZenRockGarden
Active Member
I think Tesla simply lets people order 7 seats if they want the tax credit - most Model Y customers have too high income to qualify anyway.
Then Tesla adjusts overall prices purely as needed based on observed demand and available factory capacity, largely ignoring tax rebate thresholds.
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