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Price drop X75D 4/17
- Thread starter geddon_jt
- Start date
Also, I think lowering the price sets a dangerous precedence. Makes me, as an existing owner, worried about resale. Are they going to drop it more based on cheaper batteries or to increase sales? Places even more doubt and hesitation in prospective buyers who are waiting for better tech - or now - a better deal/lower price.
I would have preferred them charging less for options or include an option as standard. E.g. The overpriced PUP or overpriced wheels.
I would have preferred them charging less for options or include an option as standard. E.g. The overpriced PUP or overpriced wheels.
Yinn
Active Member
It doesn't hurt to ask. I know Tesla has honored price changes in the upgrade path.
Our 60D was purchased prior to the $2000 price increase last year. Tesla then reduced our upgrade price to a 75D by $2000. Now that the price has dropped, our upgrade path to a 75D is only $2000 (vs $7000 previously, $9000 prior to that) Effectively making our 60D purchase price + upgrade to 75D the same cost as the outgoing 60D.
Of course if they wanted to be jerks, they could say your order is point in time, you're free to re-order and lose your deposit as well.
I think it's in preparation for the Model 3. They've been pretty honest about what a Model 3 is, and isn't. I think there are a lot of people on the fence currently waiting for a cheaper option and have built the 3 to be something it isn't meant to be. Some will be disappointed when they realize Elon was telling the truth - the S is a much better car with the latest technology. This, in my opinion is another method of pivoting the potential lost sales into a successful and proven Model S instead. Especially if the 3 starts piling up options to be in the mid $50-low$60k range. Getting rid of the S60 allows there to be a bigger gap between the two cars with a price difference that makes sense.
Reciprocity
Active Member
i agree. People holding out for a high-end Model 3 might seriously consider the lower end Model S. And this just joining the party who cant wait 18 months because they just reserved, the Model S is looking very nice now. I thought this type of price change would have happened closer to the end of the year with the 2170 pack and thousands of model 3s in the wild stirring new demand. But I guess they decided to do it sooner to better leverage the existing demand. I think it was Elon who said that for every 5k you lower the price, the addressable market goes up by 10x. Its hard to know how big the addressable market is for the lowest end Model S as you cant just take the entire 100k S/X they sell today because the price ranges so much. But either way, it just got 5x bigger? Maybe it can add 30k-40K S/X over what they projected for Q1/Q2 of 47k-50k.
I seems like Tesla does not care about existing customers. They even dropped the price of the 90D and I can configure the same vehicle I purchased only a few months ago for $2000 less. How about all those poor guys that paid $7000 to upgrade to their batteries and now the cost is a fraction of that cost.
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JonathanDandrea
Member
Would Mercedes or BMW cut you a check if they offered a fall discount to promote sales and you had bought in the summer? Keep things in perspective
Yinn
Active Member
I disagree, existing customers have the option to upgrade at a cost of $2,000 now. I would say that shows they care about existing customers. You can't very well expect Tesla to refund you $5,000 because you bought earlier. Those are point in time.
JonathanDandrea
Member
So its fair that customers that bought a 75D last month just took a $3000 hit on their resale? This is not a temporary sale this is the new price. This is Tesla's way of trying to get people to move from Model 3's to a Model S but they dont care about hurting their existing customers to gain new customers.
Cool, I did the same, let's keep each other apprised as to this so we can make sure both of us are treated consistently since we're both in the same boat. It seems unfathomable to me they would not honor the new price, since if you refuse delivery it will go into inventory and sell to another customer at the new price.
My DS has forwarded my e-mail to the sales person. I probably will still take delivery since the difference between the non-refundable deposit and the price drop is only $500 + time and I don't want to wait no longer!
Yinn
Active Member
Considering Tesla manages to have a higher than industry average for resale value, I would think so. So while it stinks for you, it seems to be working overall. Tesla Model S sells faster as used car — and for more money — than peers do, study finds
Tesla also isn't the only one to do it, supply & demand drives pricing. It isn't even new to this economic cylce:
Fiat: Fiat planning price cuts in U.S.
VW: VW Lowers Jetta Price of Entry for 2015, Doesn’t Want You to Buy That One
Nissan: Nissan Prices to Drop on 7 Popular Models - Autotrader
Mercedes: Mercedes-Benz Lowers MSRP on 2010 Sprinter Van
Ford EV: Refreshed 2017 Ford C-Max Energi Gets $4,650 Lower Price, Now From $27,120
Another Ford EV: Exclusive: Ford to lower Focus Electric MSRP by $6,000 - LeftLaneNews
As an existing customer, again I disagree. The value of my 60D is still pretty strong, especially if I pay the $2000 to upgrade it to a 75D. I would argue that as an existing customer, this change increased the value of my car in the past 24 hours. It sucks for you, and you can rant. But a blanket statement to say they don't care about their customers is a bit much.
When was yours built? My Dec delivered AP2 MS60D, checked this AM and confirmed the upgrade cost was $2000.
Just thought of something, we would also be paying a higher registration tax if they do not lower the price on our already in production/built car.
In your case you benefited because for a small price your 60D can now be a current 75D and can be sold as a 75D, Others are not so lucky so its hit or miss.