Price Drop $1,100

[jboy210]

I suppose if you bought the car with cash, but most people are financing them.

The referral program was dumb anyways. Some people get roadsters while my friend never even got his wall connector like he was supposed to when I used his code... If the referral program was costing them $1000 a car they should have cut it when they started selling 3's

Did your friend order the wall connector from the phone app? I ordered mine and it took 5 months to get it, but it eventually came. I could have got the non-signature version in a week, but the signature one is so cool.

 

[Knightshade]

You mean if they add more options like air-suspension. But otherwise they will be putting in AP3 hardware which will cost them less than the 2.5 hardware they have now. So I expect more price drops as the the tax credit value goes away.

Elon was pretty clear HW3 cost is the same as 2.5- just a lot more capability.

Another possibility is including autopilot for free soon.

Given the take rate is north of 70% (or was last time we got info on it) that seems like the opposite of a possibility

 

[Glamisduner]

Did your friend order the wall connector from the phone app? I ordered mine and it took 5 months to get it, but it eventually came. I could have got the non-signature version in a week, but the signature one is so cool.

No tesla made some mistake that has his referral marked as invalid. Although I have proof that it is valid. But there is no way to contact the referral hand of tesla other than email, which gets no response.

When I called tesla service they told me I got free supercharging because I ordered in September, which is not correct. I ordered in August using my friends referral to get free supercharging.

 

[gillynova]

I just got my Tesla last week and NOW they announce a price cut of $1,100...

 

[Glamisduner]

Not really. I bought a fully loaded (midnight silver, white interior, EAP, FSD, perf package) P3D+ back in august for $80,500. Since then I have gotten a $5000 refund check and a $7500 federal rebate. So it cost me $68,000. Now that same car costs $71400 (if you add off menu FSD) and has a $3750 rebate, so $67650. So the net price loss is $350 + $700 (the tax/registration difference I paid on 80.5k vs 71.4k).

I also get premium internet for my ownership of the car which is probably worth $500 to $1000 depending on how long I keep it.

Net value wise I've barely lost anything, and even then that's just due to the high sales tax in california on the base price difference

Didn't mean to ignore your post.

lets not include FSD because I don't know what it currently costs off menu. I know it was $3000 when you ordered though.

80,500 minus 3k = $77500 + 7.75% of $77,500= 83,506.25
Now you got $5000 back so 78,506.25 then your counting the tax credit which was $7,500
$71,006.25

Same config no AP is 68,400 plus tax @ 7.75% = $73701 - $3750=
$69,951

The car is now cheaper, and this calculation assumes you paid cash. Since your loan will also have been financed for $9805 more which you will pay interest on for the next 5 years (assumes a typical 5 year auto loan).

lets say you have a 3% auto loan for 5 years:
Assuming you put down 20% on the car ($16,701.25), the Aug buy will pay about $5,218 in interest on the loan,
The current purchase with ($16,701.25) down will pay $4,452.89 in interest at the end of the loan

Aug Purchase total is $76,221
Current Purchase Total is: $74,403.89

In addition you had less money tied-up up front as your not waiting on a tax rebate. Plus you likely got a car with inferior build quality, or went through a ton of hassle getting things repainted or replaced. You will also have higher monthly payments.

I guess the difference isn't as bad as I thought but it's still there.

If you don't count the tax credit (some people don't qualify) the difference becomes much more significant. Really the tax credit shouldn't count since it does not directly deal with teslas profits or price of the car. As they said, it was lowered due to the referral program, not the tax credit.

 

[adhoc]

Despite certain information aspects being asymmetric, I do believe that Tesla does understand price elasticity.

They are lowering prices because they have to, otherwise Q1 would look really bad. The sales center pitch is going to be “we covered the difference (most) of the subsidy loss” so its the same deal.

Tesla dominates the vehicles in its price class but doesn’t dominate the most profitable classes (trucks and suvs) and not yet reaching into the Camry class.

There’s no FSD refund - just honoring lower posted price.

PUPgate wasn’t a luxury that Tesla can afford. Elon ran his mouth off and legal decided best to just pay it and avoid any bad PR.

see, here's what I don't understand...

people here use words like 'elasticity' & 'asymmetric'
then go on to prove otherwise?

tesla does dominate in most profitable classes!
MB/BMW reflected in quarterly the damage of S/3/X
toyota's recent sales decline have been attributed
in large part to model 3...

now a pickup is expected 2019 along with model Y!
if you watched CNBC yesterday, detroit acting only to
protect their bread & butter, chevy introducing a behemoth
new siverado to compete with ford/mopar behemoths?

by all measurements except production/service and cash flow?
tesla is EXCEEDING all expectations and given their
NEED for cash flow, I still don't understand this reduction.

as far as the REFUND tesla did on FSD, they gave back money
they charged at a higher price, hence they REFUNDed $$$.
we can tomato/tomató the words, but they still REFUNDed $$$.

and I do agree, the corporation begrudgingly had to follow the
CEO's ill worded comments surrounding the PUP lowered price.
and they called that one a REFUND too!

isn't tesla NOT producing the SR model due to unprofitability?

I'm not holding my breathe of convincing anyone to a different
point of view, but when your products are selling WELL, and
you are having cash flow/profit challenges along with needing
to increase production on existing models while expanding your
line of products, strangling your pricing structure while confusing
your customers doesn't show knowledge of pricing or marketing.

 

[EricUSC]

Don't forget that Tesla regularly adjusts price in both directions. It's simple supply and demand. Here is the price history of my Model 3 (LR-AWD, Red, White Interior).

LR-AWD: $53k-$54k-$55k-$54k-$53k-$51k, $49.9k
Red: $1k-$1.5k-$2k-$2.5k
White Interior: $1.5k-$1k
Destination: $1k-$1.2k

You can wait and hope Tesla will lower the price, but the opposite may happen and I was feeling pretty good when my configuration was at it's peak price.

From my experience, Tesla will give you the new price of the car or the individual option if it drops before you take delivery, but won't charge you the higher price if it goes up. I ordered my Model 3 on 6/28/18 and took delivery on 11/21/18. When I took delivery, Tesla gave me a price adjustment of -$500 because the price of white interior dropped from $1.5k to $1k despite the the same configuration costing more at delivery time (red paint increased from $1.5k to $2.5k).

 

[Lunares]

Didn't mean to ignore your post.

lets not include FSD because I don't know what it currently costs off menu. I know it was $3000 when you ordered though.

80,500 minus 3k = $77500 + 7.75% of $77,500= 83,506.25
Now you got $5000 back so 78,506.25 then your counting the tax credit which was $7,500
$71,006.25

Same config no AP is 68,400 plus tax @ 7.75% = $73701 - $3750=
$69,951

The car is now cheaper, and this calculation assumes you paid cash. Since your loan will also have been financed for $9805 more which you will pay interest on for the next 5 years (assumes a typical 5 year auto loan).

lets say you have a 3% auto loan for 5 years:
Assuming you put down 20% on the car ($16,701.25), the Aug buy will pay about $5,218 in interest on the loan,
The current purchase with ($16,701.25) down will pay $4,452.89 in interest at the end of the loan

Aug Purchase total is $76,221
Current Purchase Total is: $74,403.89

In addition you had less money tied-up up front as your not waiting on a tax rebate. Plus you likely got a car with inferior build quality, or went through a ton of hassle getting things repainted or replaced. You will also have higher monthly payments.

I guess the difference isn't as bad as I thought but it's still there.

If you don't count the tax credit (some people don't qualify) the difference becomes much more significant. Really the tax credit shouldn't count since it does not directly deal with teslas profits or price of the car. As they said, it was lowered due to the referral program, not the tax credit.

Mine actually came perfect, I didnt have to have tesla do any work on it at all.

My loan is 1.49% so the extra financing cost is very minimal. Also if we are looking at that then we should also include interest gained on $3750 since I get the tax rebate a full year earlier.

Either way the difference is minimal (<$1000) and I got premium internet for 5-10 years (worth at least $500) and most importantly got to drive my 6 additional months compared to someone who buys now.

Basically break even to me, certainly not 20% depreciation

 

[SO16]

Some people are holding out for v3 autopilot hardware. Other people are just stubborn dumbasses.

I don’t understand waiting for v3 when there should be an upgrade path for V2.

 

[SO16]

I don't think they are selling well enough, hence the monthly 1-2k drop in price. It's not a good sign at all.



Even a year of supercharging isn't worth $500 let alone $1100.

In any other case, I’d probably agree that it’s a bad sign. But in this case, Tesla was given flak for being too expensive. So now they try to reduce the price and still get flak.

You know the saying.... damned if you do....

 

[SO16]

And that sounds like no fun at all. And it's also hard on the battery. And it will take longer since the car will throttle charge rate to prevent excessive wear on the battery.

As for them selling well it took 4 months to get a car when I ordered. A friend ordered his last week and he had a vin in 2-3 days. This indicates there is an inventory and they are not selling as quickly as they intended.

And yet during the quarterly meeting there is relatively little inventory. Production speed also increased and many of the reservations are for lower trim cars. There is enough FUD out there. Why add more?

 

[Probllama]

Don't forget that Tesla regularly adjusts price in both directions. It's simple supply and demand. Here is the price history of my Model 3 (LR-AWD, Red, White Interior).

LR-AWD: $53k-$54k-$55k-$54k-$53k-$51k, $49.9k
Red: $1k-$1.5k-$2k-$2.5k
White Interior: $1.5k-$1k
Destination: $1k-$1.2k

You can wait and hope Tesla will lower the price, but the opposite may happen and I was feeling pretty good when my configuration was at it's peak price.

From my experience, Tesla will give you the new price of the car or the individual option if it drops before you take delivery, but won't charge you the higher price if it goes up. I ordered my Model 3 on 6/28/18 and took delivery on 11/21/18. When I took delivery, Tesla gave me a price adjustment of -$500 because the price of white interior dropped from $1.5k to $1k despite the the same configuration costing more at delivery time (red paint increased from $1.5k to $2.5k).

Valid point, I have not thought about how prices of cars and options had increased in the past but as you pointed out it is a supply demand issue and looks like price increases happened when Tesla was trying to ramp production. If they can indeed build 7k cars a week then supply shortage driven price increases seem unlikely going forward. Option prices and bundling structure might change though so again very good point you are raising.

 

[SO16]

I just got my Tesla last week and NOW they announce a price cut of $1,100...

Like practically for everything: prices are subject to change.

 

[GoEV]

I bought my 3 because it's an AMAZING car and there's NOTHING like it.

We have ~12 years to try to really slow global warming and this car at 130MPGe (plus 5 star safety rating and amazing performance) is at least a step towards making this happen.

Sorry, to see Tesla have to drop prices, but I don't regret missing the price drop. If I'd waited, I'd not have been able to drive this amazing car.

Thank goodness there are thousands of people at Tesla willing to lead the way!!!

 

[voip-ninja]

In any other case, I’d probably agree that it’s a bad sign. But in this case, Tesla was given flak for being too expensive. So now they try to reduce the price and still get flak.

You know the saying.... damned if you do....

Once subsidies are gone or nearly gone (Q3/Q4) what will be interesting is to see how many of the higher priced Model 3s Tesla is able to sell compared to direct competitors at the same price point.

BMW sells about 1,000 3 series cars in a month but probably only 50% of those are the higher optioned 330i and 340i (just my guess). If Tesla is selling 1,000 LR DM cars in July of this year in the US market will that be seen as a "failure" by the relentless fake news media?

 

[SJC3]

Didnt read through the 6 pages, but if you went to contract before the price drop and havent taken delivery yet, Tesla is doing the nice thing and honoring the $1100 discount. You should get an updated MVPA...call your ISA if you havent gotten the email yet...they just started updating them last night. Yes, you keep the free supercharging if you got had the referral. Nice work Tesla!

 

[CrazyCoconut]

I think it's great that the lower price points will allow more people to access these great cars. Although a small selfish part of me wishes the P3 is more rare in the wild. It's becoming too common - there are about 30 Model 3s at work, with 3 P3s including mine.