More price drops coming?

[vickh]

Did you miss my remark regarding compliance pricing?

A lot of the lower line got reduced to comply but a few select (mostly performance) models remain ineligible until they’re re-priced or it’s established that those cars don’t need our tax dollars to get them on the road.

Yes that would explain why they raised some option costs too. Like 3 row seats by $1K

Overall I like compliance pricing if I like the product I wish they had set it a bit lower like $50K

 

[hmmwv]

That 30% margin may have been at peak supply chain pricing, and Tesla is growing. I cannot even begin to guess what their margin will be through this year at current pricing.

Yeah cutting $13k is not going to break Tesla, but will reduce their margin on MYLR from 30% to 10%. However we don't know how much saving has been created through manufacturing efficiency improvements, supply chain is getting stabilized and component prices are coming down, Tesla is probably back to early 2021 level in terms of unit cost.

 

[slashtom]

The beauty of the tax credit this time is the Biden administration did it correctly.

They capped the msrp and they applied it as a tax deduction.

Historically these ev companies would capture the tax credit by pricing it in. So if they got wind a 7500 tax credit was coming. Evs would be priced 7500 higher to capture it.

I’ve noticed this with solar install companies. 30% rebate and they will show you price after rebate. The price after rebate is closer to what we paid 15 years ago.

Tesla was boned into dropping the msrp. Now is there room to drop it more? Probably. But why would they.

 

[vickh]

The beauty of the tax credit this time is the Biden administration did it correctly.

They capped the msrp and they applied it as a tax deduction.

Historically these ev companies would capture the tax credit by pricing it in. So if they got wind a 7500 tax credit was coming. Evs would be priced 7500 higher to capture it.

I’ve noticed this with solar install companies. 30% rebate and they will show you price after rebate. The price after rebate is closer to what we paid 15 years ago.

Tesla was boned into dropping the msrp. Now is there room to drop it more? Probably. But why would they.

Agree about letting the buyer "keep' the credit, but they should have made it even $50k eg Ford MME is priced below, Audi EV is close and I'm sure there are other SUVs too???

 

[vickh]

Another big factor is chip shortage is over.

 

[Ostrichsak]

Another big factor is chip shortage is over.

Tell that to my Ford Lightning that just got built w/o a heated steering wheel, onboard scales, heated side mirrors and several other chip-based features.

 

[vickh]

Tell that to my Ford Lightning that just got built w/o a heated steering wheel, onboard scales, heated side mirrors and several other chip-based features.

I hear ya. I meant the ones in production going forward

Hope they compensated you for that. This would explain why MME is so "cheap" @ $49K

 

[vickh]

Anyone here have CNBC pro or related article Looks like they're saying a price war is coming??

Winners and losers in electric vehicles as Tesla possibly ignites a price war

Tesla's price cuts may force an 'industry-wide price correction,' an analyst wrote Tuesday. The move may draw buyers who have not considered EVs before.

www.cnbc.com

 

[arbitrage000]

I wonder what will happen if Ford gets the rules changed to include MME in the $80K cap...that would probably allow MY 5 seat to qualify for the $80K cap. Would Tesla start raising the price back up at that point to gain back some of their margins?

If Tesla is planning a more significant refresh of M3 and MY this year (not a major exterior change) in regards to the HW4 suite and HD Radar etc will they then use that to raise the price?

If MYP and higher optioned MYLR builds start just sitting around will Tesla lower the price on these to get them under the $55K? Or would Tesla allow MYAWD to be custom ordered which should allow more options as it is $2K less MSRP? So then you could order Red with white seats or Black with white seats or any custom colour with 20" etc and still qualify?

 

[vickh]

I wonder what will happen if Ford gets the rules changed to include MME in the $80K cap...that would probably allow MY 5 seat to qualify for the $80K cap. Would Tesla start raising the price back up at that point to gain back some of their margins?

If Tesla is planning a more significant refresh of M3 and MY this year (not a major exterior change) in regards to the HW4 suite and HD Radar etc will they then use that to raise the price?

If MYP and higher optioned MYLR builds start just sitting around will Tesla lower the price on these to get them under the $55K? Or would Tesla allow MYAWD to be custom ordered which should allow more options as it is $2K less MSRP? So then you could order Red with white seats or Black with white seats or any custom colour with 20" etc and still qualify?

I doubt an upward revision of 80K is probable. They're worried about appearing to subsidize the rich and actually increase inflation with the IRA! (which I agree with at $80K cap)

I think they should./might raise the used EV tax credit at $25K (very few if any SUVs at that point)

 

[jjrandorin]

Pricing discussion now goes in this stickied thread. Please move any further discussion on this topic to that thread there:

Discussion: Model 3 and Y price drop Jan 2023 / April 2023 / Oct 2023 and All other Pricing Speculation going forward

(moderator note) This will now be "the" price drop discussion / price speculation thread in the model Y subforum. It has been stickied to be found easier, and other threads on this topic will be locked and pointed to this one. ====================== It looks like the price of the MY just...

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