Price hike

[GRiLLA]

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.

Definitely, my depreciation over three years has been £300/month, add £30/month more for insurance. The salary sacrifice through my employer would have costed my twice that monthly.

Clearly it's always going to be more expensive as lease companies that don't make profit tend to not last very long.

 

[Jason71]

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.

and Googles was "Don't Be Evil"............ until it wasn't.

 

[AnthonyLR]

and Googles was "Don't Be Evil"............ until it wasn't.

Well, let's put it this way. If Elon has some nefarious alternative plans he is not sharing with us, he is about to gain control of Worldwide energy generation (solar with autobidder), have millions of self-driving cars on the road, have legions of AI robots, and build a new civilisation on Mars. As well as put chips in brains. Nothing to worry about.

 

[yessuz]

Well, let's put it this way. If Elon has some nefarious alternative plans he is not sharing with us, he is about to gain control of Worldwide energy generation (solar with autobidder), have millions of self-driving cars on the road, have legions of AI robots, and build a new civilisation on Mars. As well as put chips in brains. Nothing to worry about.

no, really. each and every business aims to make money. you can declare all you want, but in the end of the day is to make money.

 

[AnthonyLR]

no, really. each and every business aims to make money. you can declare all you want, but in the end of the day is to make money.

There is absolutely no doubt Tesla needs to make money. It needs to do that to scale massively and accelerate the transition to renewable energy. But Tesla has no plans to pay a dividend. It's keeping its cash and reinvesting. Hiring the best people, R&D, new factories. The usual yada yada. None of this is possible if they make losses. Just see how far Rivian and Lucid get.

Elon Musk says Tesla rivals Rivan and Lucid are doomed if they don't cut costs

Elon Musk knows a thing or two about running a car company that has nearly gone bankrupt.

www.businessinsider.com

 

[Zilla91]

he is about to gain control of Worldwide energy generation (solar with autobidder), have millions of self-driving cars on the road, have legions of AI robots, and build a new civilisation on Mars. As well as put chips in brains. Nothing to worry about.

I reckon there’s a better chance of me winning the EuroMillions jackpot than any of that ever happening in my lifetime

 

[Rooster6655]

he is about to gain control of Worldwide energy generation (solar with autobidder)

If he wasn't messing around with Twitter I think 43b worth of solar panels could have made a big difference in the world!

 

[Toblerone]

If he wasn't messing around with Twitter I think 43b worth of solar panels could have made a big difference in the world!

Are we thinking 4 or 5 solar panels for each of Earth’s 8bn inhabitants?

 

[Kenners]

I was lookong at the little electric Honda, was 27k when it launched, that has gone up 10k, % wise more than a Tesla, and that only goes a hundred miles and change.

I would say you have to look at current pricing as part inflation, part supply chain disruption but also a move to lock in customers (they must have 6-9 month pipeline of orders) that they might lose as incomes continue to get squeezed. People more likely to go ahead if they think they are getting a deal, even if it feels expensive. Note Elon is worried about recession. And margins were already pretty good. So its not all lithium and cobalt prices.

If we get a recession we will quickly be back to a world of depreciating car prices, although EVs will still hold up better than a Range Rover.

 

[Rooster6655]

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.

There is of course a premium segment in every industry, however beyond range/batteries I would consider Porsche, Mercedes and Audi more premium than Tesla right now. Customer service, reliability and ability to support their current products makes Tesla not comparable to Apple, I actually suspect that their customer services is going to be taken over by AI as I feel like I would get more sense out of an AI chat bot at times than dealing with their sms system.

 

[GRiLLA]

There is of course a premium segment in every industry, however beyond range/batteries I would consider Porsche, Mercedes and Audi more premium than Tesla right now. Customer service, reliability and ability to support their current products makes Tesla not comparable to Apple, I actually suspect that their customer services is going to be taken over by AI as I feel like I would get more sense out of an AI chat bot at times than dealing with their sms system.

TBH I would say that Tesla's service model is very like Apple's. Heavily proceedurised, as long as you follow the rules then it's all slick, but falling outside the policies means you'll end up simply without service. I'm not sure if I would call either a high quality service like BMW, Mercedes etc (don't get me started on Audi), but then I'm not really paying the same as you would with those companies.

 

[Rooster6655]

TBH I would say that Tesla's service model is very like Apple's. Heavily proceedurised, as long as you follow the rules then it's all slick, but falling outside the policies means you'll end up simply without service.

Yes both are similar trying to be efficient, the biggest difference is when having a problem is Apple has staff and management in place to deal with issues, people who can take responsibility and deal with issues there and then, with Tesla on the other hand it takes a lot more work

 

[JonB]

Not sure why you're complaining about Tesla Service. No questions asked and my car is booked in. Sure, sometimes it is harder than it might otherwise have been (not my experience, but I acknowledge that others have had different experiences). But compared to going into a traditional dealer and having to argue the toss over some minor defect like rattles or paint issues, I found Tesla to be far better.

Regarding the Tesla mission statement, Tesla absolutely has to make bucketloads of cash to implement it. There is no other way (unless Musk becomes President and even then he would be battling the partisan politicians in Congress for every dollar).

 

[Jason71]

unless Musk becomes President and even then he would be battling the partisan politicians in Congress for every dollar).

Fortunately he is not eligible to run, so we don't have to worry about that.

 

[Zilla91]

Yikes. Was thinking the other day of getting a Model Y to replace my ICE car… don’t think I’ll be doing that any more

On second thoughts, sod it, you only live once.

 

[Zilla91]

Ha, it’s not even been a day and it’s already jumped back September - November. There was me thinking I wouldn’t be thinking about it until next year

 

[delta0]

US prices have gone up again so inevitably UK will too.

 

[Lord Farquad]

US prices have gone up again so inevitably UK will too.

Was this on the 24th of Jun? They’ve only recently gone up (last week). What’s increased and by how much??

 

[delta0]

Was this on the 24th of Jun? They’ve only recently gone up (last week). What’s increased and by how much??

It was the base model Y going up by $2k

 

[MrT3]

It was the base model Y going up by $2k

I think it escaped the last increase so it’s just play catch up rather than being the start of another wave of increases.