Tesla website updated. The P85 base price has increased from $82,400 to $85,900 but now includes the spoiler, alcantara headliner, and red brake calipers as standard. That's a $3500 difference which represents $1500 for the spoiler, $1500 for the alcantara, and $500 for the red calipers?
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P85 $3500 price increase and bundling (spoiler, alcantara, and red calipers)!
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doctrewho
Member
PokerBroker
Member
Gizmotoy
Active Member
I'd really like the red calipers, but have practically no interest in the other options. $3500 for the calipers would be a tough sell for me, not that there's any choice for new orders. Glad I got in before the increase.
DIL
Member
Sometimes I just don't understand Tesla....first they bundle, then they separate...or worse...they add more features. There is no notification to the customers and what is worst, is, if the Customer wants that option, he/she may or may not be able to add it.
What are your thoughts?
What are your thoughts?
Gizmotoy
Active Member
It's a little annoying, but that's the nature of constantly evolving your product line. I would have paid $1k or so for the red calipers on their own, for example, but am not really interested in the other items that just got bundled.
Sounds like they're getting too many P85/P85+ orders to meet their "1 month priority delivery" promise (which has been false since around September) and decided to bundle some less-popular options to increase profit margins.
lolachampcar
Well-Known Member
No need for focus groups here. We do real time price sensitivity testing. It seems consistent with Musk's personality, at least the shoot from the hip part.
You've presented two theories here not one. I tend to think it's mostly (1) and not much of (2).
Gizmotoy
Active Member
Still seems like one thing to me. It's not two theories, it's cause and effect. They increased their profit margin, and price, on the P85/P85+. This is likely to lead to reduced demand, and somewhat fewer P85/P85+ orders to whatever extent buyers are price-sensitive.
I see it differently. (1) could be done entirely to speed up production. Fewer configurations allow for a faster line. Higher prices (generally) turn away some upgrades that customers were considering which either diminishes demand (fewer cars) or increases production rate (less in the car to build) -- or both.
Notice nothing in what I described here speaks to profit margin (so far), but the "motivating customers not to upgrade" might actually lower profit margin.
I find it amusing that Tesla's "mid price, mid volume" car in their master plan has had it's top end version reach the point where it costs more than some configurations of the previous Roadster. If they make lots of money on them, more power to them and it's good for the company's survival, but the S in its typical configurations has certainly drifted far from the original verbiage. I remember a lot of talk about cutting the price by half relative to the Roadster, but Tesla's shareholder report says they're near 100k for the ASP.
Doesn't give much hope that Gen3 will really be mass market priced. If the S was "mid priced" at it's original $50k for the 40kwh and ASP is actually 100k, then the targeted $35k for the Gen3 is probably more likely $70k, which really isn't achieving Elon's stated goal of a mass market car
Doesn't give much hope that Gen3 will really be mass market priced. If the S was "mid priced" at it's original $50k for the 40kwh and ASP is actually 100k, then the targeted $35k for the Gen3 is probably more likely $70k, which really isn't achieving Elon's stated goal of a mass market car
lolachampcar
Well-Known Member
Tesla hit it out of the park with MS and the price is rising to the value they are providing.
G3 needs to be designed to that $35K price point. If it stays there after they start shipping will purely be a function of demand.
G3 needs to be designed to that $35K price point. If it stays there after they start shipping will purely be a function of demand.
hmmm I doubt that. IMO this is purely for profits, nothing else. I highly doubt that someone who wanted a P85 will revert to an S85 just because of a small $3500 price increase. However, if you didn't notice, you are allowed to "uncheck" the spoiler and alcantara headliner, but it does not reduce the price. So it's a way for them to force people to pay for something they don't want , a two-fold profit increase -> either (a) they order it, spend more, and more profit per car or (b) they order it, uncheck those options, and tesla makes an even bigger profit per car.
Gizmotoy
Active Member
It's funny to me that you also split the two apart, but made the exact opposite argument as brianman. Yours was more convincing, though. This increase provides zero benefit for production simplification since, as you noted, you can remove all the bundled items if you choose (though you still pay for them).
I think a 35% increase in the cost of the P85 upgrade is bound to affect demand. Quite simply, that's a huge increase. Look at how often people on here get talked into upgrading from the S85. I think that upsell just got a lot harder. At the same time, the people who were always going to get a P85, like myself, would just swear and go ahead with it anyway.
mknox
Well-Known Member
Just happened to notice the bundling options are different between the Canada and US site. In Canada, they've gone back to letting you order the Dual Chargers and HPWC separately.
I do remain curious about how Tesla implements our mandatory DRLs in non-Tech Pkg cars since the Canadian Tech Pkg specifically calls out the DRLs.
I do remain curious about how Tesla implements our mandatory DRLs in non-Tech Pkg cars since the Canadian Tech Pkg specifically calls out the DRLs.
