Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Price hike

This site may earn commission on affiliate links.
With the M3 prices pushing towards £50k I wouldn’t be surprised if Tesla introduce a their new baby/smaller in a few years, priced at a “budget friendly” £40K price point.

They’ll retain healthy margins. More customers get to drive a Tesla and with the smaller batteries Tesla will see increased revenue from their super chargers.
Been rumoured for quite a while now:

 
Been rumoured for quite a while now:

Only way to meet the masterplan, there is no way Telsa can scale the way they are targeting with such a narrow product offering, something ID3 sized would be perfect for them, cybertrucks outside the US will only ever be a niche.
 
I think I paid £43.5k for my Model 3 LR with tow hook back in Sept 2019. List was then £47k and the PICG was £4.5k. Happy days ! Mind you, it was still £10k more than a fully-speced BMW 340i Touring run-out model that I was sorely tempted by. Glad I didn’t go down that route with fuel prices what they are today.
 
Last edited:
If you are worrying about brand car prices right now than I would say you are doing very well for your self, and really there is nothing for you to worry about :).

I don't know about very well, but well enough - I was more sort of saying that I wasn't 100% sure that I wanted to pay that much for the car at £50k and right now I'd probably look elsewhere.

I guess that's the idea though, to push away potential customers like me and ease the wait times.
 
I think I paid £43.5k for my Model 3 LR with tow hook back in Sept 2019. List was then £47k and the PICG was £4.5k. Happy days ! Mind you, it was still £10k more than a fully-speced BMW 340i Touring run-out model that I was sorely tempted by. Glad I didn’t go down that route with fuel prices what they are today.
That is when I got mine. The PIG was £3.5k and they were just over £46k after the grant
 
With the M3 prices pushing towards £50k I wouldn’t be surprised if Tesla introduce a their new baby/smaller in a few years, priced at a “budget friendly” £40K price point.

They’ll retain healthy margins. More customers get to drive a Tesla and with the smaller batteries Tesla will see increased revenue from their super chargers.
Longer term they do need to have a lower priced option in the future for higher uptake as £50k for a SR is going to hit the boundaries for many people on a strict budget. In the short term whilst they can sell everything they make it makes sense for them to keep price high but I wish they would stop making cars and use the parts to supply their service centres, rather than claim the parts are out of stock for months!
 
is £50k really going to be a problem? It's a big number, but how many people are buying these cars outright? When you consider the salary sacrifice cost, etc and petrol going up by crazy amounts, I'd be surprised if people are still saving money even with the increased monthlies.
 
is £50k really going to be a problem? It's a big number, but how many people are buying these cars outright? When you consider the salary sacrifice cost, etc and petrol going up by crazy amounts, I'd be surprised if people are still saving money even with the increased monthlies.

With high resale values currently and with Tesla, purchasing out right seems to be the best cost effective way to own a Tesla, yes resale values are higher now but I expect this to continue for a while. I don't have any example numbers but I suspect over the past 3 years salary sacrifice and lease options will have cost more than someone who personally financed the cars and then sold it. In this respect the higher purchase price is likely to have an effect on organic sales for the car, Tesla know this and is just one of their methods to manage their sales.

For those that do decide to lease/salary sacrifice then I suspect the monthly price changes will probably not make a huge difference compared to the saving in fuel as you mentioned.
 
  • Like
Reactions: Garry TheBiz
Longer term they do need to have a lower priced option in the future for higher uptake as £50k for a SR is going to hit the boundaries for many people on a strict budget. In the short term whilst they can sell everything they make it makes sense for them to keep price high but I wish they would stop making cars and use the parts to supply their service centres, rather than claim the parts are out of stock for months!
Apple has done just fine sitting at the high end of the market with huge margins letting the various Android manufacturers fight over the £100-400 segment.
I can see that being the future for Tesla. Maybe more volume was or still is their plan but while there are shortages of materials, which there will be for a while, maximising the return on each battery you can make with higher end cars makes more sense. I would think that any plans for an "M2" will be sitting on a drawing board somewhere behind the Cybertruck, Semi, Roadster and lots and lots of MY/M3s.
 
  • Like
Reactions: Durzel
My Dec 21 LR White / White with tow hitch is now £59k. I think I paid £51k, which I thought was too much at the time. I never thought I'd ever spend over £50k on a car, that being a kind of psychological barrier fo rme. But I sold two other cars in the roaring second hand market (thanks, Cazoo!) which covered the cost entirely. I'd baulk at £59k though!
 
Apple has done just fine sitting at the high end of the market with huge margins letting the various Android manufacturers fight over the £100-400 segment.
I can see that being the future for Tesla. Maybe more volume was or still is their plan but while there are shortages of materials, which there will be for a while, maximising the return on each battery you can make with higher end cars makes more sense. I would think that any plans for an "M2" will be sitting on a drawing board somewhere behind the Cybertruck, Semi, Roadster and lots and lots of MY/M3s.
Tesla is not interested in low volumes. The mission is to promote renewable energy. Elon has specifically stated he does not want to make cars that only the rich can afford. At the moment production is constrained so there is no point offering a lower priced option when they cannot produce enough high priced ones.

When Elon was asked on the last earnings call about the $25k Tesla (now needs to be inflation adjusted to the $35k Tesla!) he answered by saying that everyone was underestimating the importance of Full Self Driving. I think that means Robotaxis which are specifically designed to be Robotaxis, and which Tesla may well not sell to the public but fund its own fleet. Sounds crazy, but well within the realms of possible outcomes.
 
I thin their mission is to make money, really..
Well, you can always say Elon is a liar, but if you believe his words to be truthful he has said that the way to look at the good Tesla has done for humanity (looking back from the distant future) is to ask by how many years did Tesla accelerate the transition to renewable energy. Elon feels the transition is inevitable, he just wants to accelerate its happening. The "make money" part is a by-product of making products consumers want to buy that are superior to existing offerings.

"Tesla’s Mission: To accelerate the world’s transition to sustainable energy." It is their mission statement.
 
  • Like
Reactions: Exy1 and KennethS