Predictions for Model 3 pricing after Model Y released?

[hocr]

I know resale values of the Model S was affected by the Model 3, but how about the retail price of Model 3 after Model Y is released?

Seeing the Performance Model 3 drop 10K in a year, I assume the Y will also see similar drops over time and therefore trickle to other models

 

[glide]

It’s going to go down. Despite what Elon says, vehicles don’t appreciate. Especially when competition is introduced into the marketplace.

Do people honestly expect anything different to happen?

 

[WilliamG]

It’s going to go down. Despite what Elon says, vehicles don’t appreciate. Especially when competition is introduced into the marketplace.

Do people honestly expect anything different to happen?

Nobody can say for sure. Teslas aren't just ordinary cars in any way.

 

[Tony_YYZ]

The used X market will take a hit for sure. I don't see the 3 being hit too hard but I imagine there will definitely be a lot less new 3 sales compared to the Y.

 

[hocr]

Right, I've never seen a company drop an advertised price so dramatically. You can expect the base price to go up usually YoY on the same car model for ICE manufacturers.. but Tesla is so young. Exciting times..

 

[hocr]

The used X market will take a hit for sure. I don't see the 3 being hit too hard but I imagine there will definitely be a lot less new 3 sales compared to the Y.

Yep, we love our SUV/cross overs here. I hope the Y takes off!

 

[ewoodrick]

Right, I've never seen a company drop an advertised price so dramatically. You can expect the base price to go up usually YoY on the same car model for ICE manufacturers.. but Tesla is so young. Exciting times..

You have to be kidding! You've never seen a $15,000 off plastered on a car at a dealer?

 

[ewoodrick]

I know resale values of the Model S was affected by the Model 3, but how about the retail price of Model 3 after Model Y is released?

Seeing the Performance Model 3 drop 10K in a year, I assume the Y will also see similar drops over time and therefore trickle to other models

That's why the Y is priced higher. It keeps the separation and doesn't cannibalize the sells as badly. The Model Y and the Model X will be similar type of concept, a bigger version of the car before.

The Model X and Model Y had a lot of people getting a car that would have rather had a cheaper one if available. While there's definitely some folks buying Model 3s when they'd rather have a Model Y, it's not the huge price differential that exists between the S and 3.

But what everyone seems to forget is that all of the cars so far have been part of a big experiment, a part of Elon's master plan. The S and X were built explicitly to bootstrap the company into the Model 3 and other models. The "experiment" is learning how to ramp up production with brand new production concepts and then determining what the real costs of production is. Hence the "right sizing" of some of the models. And a big realization that at this time, screw options, we have to produce a LOT of cars.

 

[hocr]

You have to be kidding! You've never seen a $15,000 off plastered on a car at a dealer?

That's at the (dealer) reseller on specific cars not at the manufacturer MSRP level. Of course manufacturers offer rebates and incentives from time to time. But rarely advertised to the general public

 

[ewoodrick]

That's at the (dealer) reseller on specific cars not at the manufacturer MSRP level.

And that's because you never see the real dealer price. There's a LOT of funny money exchanges to hide the price and indeed, the manufacturer can create a kick-back or deal which lowers the cost to the dealer and the opportunity to lower the cost to the consumer.

Tesla doesn't have this ability to present these hidden number as manufacturers and dealers do. People keep getting upset over a practice that is quite common, just hidden from the consumer.

Remember, you aren't dealing with the manufacturer when buying other cars.

So indeed I stand by my point, manufacturers change their prices ALL the time, hence the signs $15,000 OFF!!

 

[TMThree]

It’s going to go down. Despite what Elon says, vehicles don’t appreciate. Especially when competition is introduced into the marketplace.

Do people honestly expect anything different to happen?

For new vehicles? Absolutely. Because the price of vehicles almost always goes up. You are forgetting that with a 10+ year timeframe, inflation plays a major role.

When Musk said he wanted a 35k Model 3, that really means around 38k in today's money.

The original Hayabusa was a $9999 motorcycle when it came out. It's 50% more today and the bike is basically keeping up with inflation at that pricing.

The only question you should be asking: Will my job increase my pay to match the rate of inflation?

 

[MXWing]

It’s like pissing into the wind with some mindsets here but there is 1 for 1 correlation between loss of subsidies and lowered prices to sustain sales at given volumes.

When Musk said he wanted a 35k Model 3, that really means around 38k in today's money.

I need to run a master class on economics here at tmc.

The $36K SR was 42K worth of value when adjusting for inflation. Still people complained.

 

[AcuraDude]

Yep, we love our SUV/cross overs here. I hope the Y takes off!

Exactly. I wonder if they will even discontinue the Model 3 in the US. Everyone here loves little crossovers, while sedan production is slowing and even discontinued in some cases. Plus alot of Model 3's will be getting traded in for the Y, so the used Model 3 market will have a ton of affordable 3's available...unless of course they appreciate every year.

 

[japhule]

Just the ones with FSD will appreciate