Are we going to see prices slashed on used Teslas now too? I was considering getting a new Model Y LR for the California solo-HOV stickers this morning for like $53K, but now I'm wondering how is this price slash going to affect the resale value/used price of the lease-returned Model Ys come Summer/Fall 2023.
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MX and MS prices slashed!
- Thread starter aerodyne
- Start date
DaBean
Member
If you sold your stock that you bought before 2018, and kept the car you bought at the same time, you'll be OK.
I only got it half right.
I'm thinking that the drop in value for used will be not as severe. Older cars with USS, radar, and std wheel and stalks are in limited supply.
Howie Dub
Member
Destiny1701
22’ M3LR ‘DrkNite’/ 22’ MYP BliueRocket
FSD costs them nothing. Likely neither does paint tbh. Both just cash grabs over base at this point. Production cost of the base Vs this blue/fsd are identical. So while new consumers benefit, Tesla doesn’t really lose on their out the door margin. Except for the extra they factored into their avg sale price
GenSao
Member
WilliamG
Hinge Fanatic
Well, sure it's a small difference in terms of hardware (barely worth mentioning), but that's just one example. On a base Model S Plaid, Tesla is now making $21k less. That's significant. And if you add those extras, that's another $21k. Either way you look at it, Tesla is making $21k less.
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Tbh you were upside down I. Your auto loan as soon as you took delivery. Production cars are not an investment and deprecate as soon as you get in. If you want luxury investment for the same price , get a nice time piece instead, like an AP or Patek.And just like that, I'm upside down on my auto loanThanks Elon.
MagnusMako
Member
Because you want to sell your shares? You're not a real investor if so. And at the other end of the stick, you knew price drops of any amount could always happen. You're only screwed by not accepting what could happen after you agreed on the purchase price.
If anything, you should be happy to see prices starting to finally come down. The lower Tesla can sell their cars and still maintain good margin, the higher their revenue can continue and eventually bring the stock back up long term.
Your absolutely right, I am not a real investor or close to being Peter Lynch. You probably thousands share more than I have. I only bought Tesla stock and watch Spacex because Elon catapulted the production of EVs. That does not mean hurt to lose $25k on a car in a matter of days and watch the Tesla stock continue to drop after you thought it already hit bottom.
Howie Dub
Member
I’m not looking at it as an investment, but cutting prices by 15-20% overnight is artificial depreciation. I'm not planning to sell, but it just sucks to know that if I wanted to I'd have to come out of pocket to cover part of the loan. Literally all the principal I paid down since May disappeared overnight.
I look at it the other way around, all of the price increases over the past 2 years were artificial appreciation. Everyone knew Tesla’s weren’t sustainably worth what people were paying for them. Prices had to come down eventually. Now they’ve just normalized the prices.
Howie Dub
Member
I‘m looking at it from a on-road performance standpoint since I have the Plaid and I didn’t think the performance models were overpriced. You got the best bang for your buck, even at the higher prices. I’m sure most MS and MX competitors have better build quality and that’s reflected in their much higher prices. I heard the LR versions all had significant increases, but it didn’t seem like performance models had that big of an increase. I believe the refreshed MSLR is still higher than when it first came out, but the MSP is significantly lower. The best example I can find of how big of a price drop this is is with the MYP, which is now priced lower than a Kia EV6 GT-Line, and that isn’t even the highest performance EV6. I’ll still enjoy driving the car, but it just sucks for those that took delivery yesterday.
Destiny1701
22’ M3LR ‘DrkNite’/ 22’ MYP BliueRocket
Similar to what happened with 2018 P100D. They were originally 210k cnd in 2016/2017. By 2018 they dropped it hard by 50k then to 159k and owners were crying foul.
Luckily I had a 2017 P100d inventory model with a -55k price adjustment off that 210k with only 1800km on it or I’d also would have freaked out. (Oh the good old days of heavy discounts when M3/MY didn’t exist!)
Such is the price of early adoption of any new tech. Enter Plaid. Now entering its 3rd year and with it..lower cost and now marketed to a different crowd who weren’t first in line. They have to reduce to keep new buyers buying. Don’t discount that Tesla probably has some efficiency gains in production over the last 2 yrs and has also factored in recoup of R&D costs in their 5 year pricing strategy.
Ie. Year 1 $1.30, year 2 $1.20, year 3 $1.10…as the tech gets adopted…price will fall. What happened with Covid is their year 2 ended up being $1.50 in this example. They probably made more margin than originally budgeted. So now reducing back is still within their 5 year profit forecast on the plaid.
it was a hard reach to purchase a plaid either S or X, now with the price cuts its attainable for most people. I’m eyes the used market to tank pretty good. Why buy used for $115k plaid no fsd or premium wheels/interior upgrade, when you can buy new for $115k. I too purchase last august a MYP, I’m not crying for overpaid like most.
Agree. It was a quick kick in the nuts when I saw the news too about the price slash. I bought my plaid a few months ago too.
