Model Y Performance £ premium

[Cnixon]

Correct me if I am wrong but not many car manufacturers would have cars that are built to different specs parts, designs? but with the same 'model names'. Is there any reason why the Performance Model Y is £10,000 more expensive. The upgrade probably costs Tesla only a few £100! Power increase is software. Springs cost the same just shorter. Wheels and red brakes will be the dominant cost. Unless....we are paying for those spec changes? Giga casting and structural battery pack mods from Berlin. Apparently demand for Performance isn't huge....really! The UK are being taken for a ride.

 

[Durzel]

Because, like everything, the price is what the market is willing to bear (or what they think it is), and little to do with the cost of parts or software.

I’ve had networking gear in the past that has had additional licensing costing thousands, and it was just a key to unlock functionality already installed.

You could say the additional cost is an aspirational target (since this thread exists, presumably you’d be keen on it), etc.

 

[Jason71]

Because its a free market. It has nothing to do with cost. Companies sell things for the most that they can get away with. So long as people are dumb enough to pay it they will keep doing it.
The M3 is only currently 4K difference from LR to P at present and the difference between M3 LR and P and between MY LR and P is basically exactly the same. That should tell you all you need to know.

Edit Also since you cannot actually get a P right now they would rather you bought an LR that they actually have so keeping such a big premium pushes people towards the LR.

 

[Cnixon]

Sorry, I forgot to mention supply and demand. That was what I was thinking when I said demand isn't huge supporting the price premium. I was interested but just not at that price point when the Model 3 and rest of the world MY only pay about £4k premium for the upgrade. I suppose there is some obscure detail like the long range comes with a tow hitch that you have to 'remove' if you don't want it! t save £1k so its only a £9k premium!

 

[KennethS]

Edit Also since you cannot actually get a P right now they would rather you bought an LR that they actually have so keeping such a big premium pushes people towards the LR.

It is the main reason we chose not to wait for the YP. We couldn’t justify the price delta over a LR with AB added on.

 

[hairysteve]

I am curious if many/any in the UK forum have ordered the YP to replace their current Y? I am on the fence.

 

[UrbanSplash]

I’ve had a YP on order since day one. But got a YLR at short notice in March. I’m loving the YLR so not too bothered about a YP now. On the fence also. Only thing I’m thinking is that I have a YP locked in at £65k, so if I got a decent price for my used YLR (which also costs more new now), it won’t be the full £10k to ‘upgrade’. Still not sure it’s worth it for bigger wheels, a cheap spoiler and red brakes. Also worth considering that when YP’s are actually freely available they might come down in price.

Tesla seem to go by ‘what they can shift’ rather than actual cost. Might curveball and get an ID Buzz!

 

[Jason71]

Tesla seem to go by ‘what they can shift’ rather than actual cost. Might curveball and get an ID Buzz!

#Freemarket #Capitalism #duh

 

[hairysteve]

I’ve had a YP on order since day one. But got a YLR at short notice in March. I’m loving the YLR so not too bothered about a YP now. On the fence also. Only thing I’m thinking is that I have a YP locked in at £65k, so if I got a decent price for my used YLR (which also costs more new now), it won’t be the full £10k to ‘upgrade’. Still not sure it’s worth it for bigger wheels, a cheap spoiler and red brakes. Also worth considering that when YP’s are actually freely available they might come down in price.

Tesla seem to go by ‘what they can shift’ rather than actual cost. Might curveball and get an ID Buzz!

On the fence because i dont see £10k of change but got a quote from Tesla last night and offered me £55,225

 

[DeejUK]

Might curveball and get an ID Buzz!

Ooh, totally with you on that one!

If OP thinks that the price difference is unreasonable, that's totally cool. To offer a different perspective that OP is of course welcome to take-or-leave, prices are set based on perceived value, not on cost. The difference in price between a bottle of water at a music festival and the same volume of water from a tap is significantly more than the cost of the bottle and the transport, refrigeration, and so on. There is no way that a pair of Calvin Klein boxers costs 10x more to make than the 10x cheaper Sainsbury's own-brand boxers.

Not to mention in the case of the MYP the overheads all the way through the supply chain of different offerings (slightly different parts, different storage, different production lines, different configurator, different marketing, different software, cost of testing different configurations, different sales training...). Some people more informed than I contend that these overheads are low, although I'm not totally convinced.

 

[MrBristow]

I am curious if many/any in the UK forum have ordered the YP to replace their current Y? I am on the fence.

I ordered a Y LR back in Feb to replace my Mercedes diesel which was stolen a month earlier, got it in March and sold it to a dealer (via motorway) for £3K more than I paid for it at the beginning of September... Picking up my Y Performance on Friday.

I always wanted the Performance and the LR was just a stop-gap to tide me through while I waited, hopefully the suspension will be a bit better on the P as this was definitely the worst aspect of the LR (although I hear the later ones have better suspension).

 

[qsmy]

Good post. I spec'ed my MYLR with the white leathers and accidentally added the Tow Bar so the price was £60,09. I could not stomach those Gemini alloys so once you add those costs on you are looking at £66ish.

On the inventory page I saw a white-on-white P and I switched the order. If I look at the resale value between M3 and M3P it holds better value. I also have driven very aggressive cars in my life M3, M4, 440d X Drive. When test-driving the LR I found the suspension to roll slightly and was concerned about the breaks.

I have obviously not test driven the P, however, the better breaking, suspensation and aggressive nature to me is not worth £10k. If they added something else on the interior it would. Bucket seats, head's up display etc.

So why am I spending the extra £10k? What else is on the market? I test-drove the new M340d/i LCI version BMW have made thier new cars feel quite numb. EV for £70k there is nothing really out there.

I see myself keeping my Model YP for a number of years, I am single, not married. That will happen soon and kids would come. It serves its purpose. I'd hope I could sell it for £30-£40 in 3-4 years time, by that time the market will be flooded with MYLR and R but I doubt their would be many performances on the market.

Meh if I loose 10k on some fun, I loose 10k.

On the fence because i dont see £10k of change but got a quote from Tesla last night and offered me £55,225

Was this for LR? not bad a all. I assume you need to trade in, you are unable to trade in for cash?

 

[T3SSY]

Correct me if I am wrong but not many car manufacturers would have cars that are built to different specs parts, designs? but with the same 'model names'. Is there any reason why the Performance Model Y is £10,000 more expensive. The upgrade probably costs Tesla only a few £100! Power increase is software. Springs cost the same just shorter. Wheels and red brakes will be the dominant cost. Unless....we are paying for those spec changes? Giga casting and structural battery pack mods from Berlin. Apparently demand for Performance isn't huge....really! The UK are being taken for a ride.

I seem to recall seeing somewhere that the P has different motors to the LR

 

[Jason71]

I seem to recall seeing somewhere that the P has different motors to the LR

solid gold ones?

 

[GeorgeSymonds]

Motors are different, inverter is higher power, wheels are different, I believe the brakes are different, due to more power and possibly track mode he keeps promising there may be more provision for drivetrain warranty issues (the P100D on the MX chewed through drive shafts), it all adds up. There will of course b3ca big slug of profit, just like there usin EAP, FSD and performance boost on the LR.

 

[Kenners]

Just another benefit of living in the sunlit uplands. Oh, and if it costs more, there are more tax savings for company car punters.

 

[UrbanSplash]

Yes the £4K USD difference is fairly negligible in the grand scheme of things. No brainier to go P. In the UK there is a £10k difference because people will pay it. Quiet rightly Tesla have identified the UK as a market where ‘top of the range’ is worth a significant price difference.

 

[Jason71]

Yes the £4K USD difference is fairly negligible in the grand scheme of things. No brainier to go P. In the UK there is a £10k difference because people will pay it. Quiet rightly Tesla have identified the UK as a market where ‘top of the range’ is worth a significant price difference.

the fact that the differences between the two are the same as between the M3LR and M3P and that was £10K for years and now is £5k tells you all you need to know.
When Tesla had lots of MYLR to shift and No MYP making the difference high to push people towards the LR made sense. Now delivery is similar. Hopefully it will reduce. having double the difference between MY and M3 LR and P models long terms is a nonsense.

 

[Cnixon]

I knew it was likely to be seen to be down to the ecconomics of supply and demand but as i said initially the LR being from Shanghai and the P from Berlin bizarrely built using different techniques could be behind the difference. In US they are built together with same transport overheads etc.

 

[GeorgeSymonds]

I knew it was likely to be seen to be down to the ecconomics of supply and demand but as i said initially the LR being from Shanghai and the P from Berlin bizarrely built using different techniques could be behind the difference. In US they are built together with same transport overheads etc.

In the US, the LR and P are both built in the Fremont. In the U.K., they’re both built in China.

It’s only mainland Europe where some cars are made on Berlin, and that includes both LR and P versions.

Whether the pricing was set with the expectation they’d be different here, who knows, but essentially the Fremont, Berlin and China are all making both models.