Prices just Dropped

[jebinc]

I imagine it has more to do with the US Federal tax credit halving again than the deliveries. Once the federal credit is gone, prices should stabilize.

I might be able to agree with your statement, if the price drops were around $1800 - but, it appears many are reporting more than a $5000 hit. Do those members just not understand or did the math incorrectly?

 

[shiftkenny]

P3D+ is the Performance Model 3 PLUS the Performance Upgrade Package (bigger brakes, 20" wheels, 0.39" lower suspension)

P3D- is the Performance Model 3 MINUS that package.... (and was discontinued last year in the US, but is now offered in the UK- and it's unclear if it's coming back in the US or not at the moment)

Maybe I'll wait a couple more weeks to find out if this is possible.

 

[willow_hiller]

I might be able to agree with your statement, if the price drops were around $1800 - but, it appears many are reporting more than a $5000 hit. Do those members just not understand or did the math incorrectly?

It might not make sense from an individual consumer's perspective, but I can see how the price changes make sense from Tesla's perspective. Consumer demand elasticity increases as the vehicle's price increases, so you can capture about the same amount of demand off of SR+ purchasers by dropping the price $900 after losing a $1,800 tax credit, where you need to make up for it completely for the LR with a discount of $2,000, and then you need to make the performance price really competitive to convince people to upgrade.

 

[mreynolds767]

I might be able to agree with your statement, if the price drops were around $1800 - but, it appears many are reporting more than a $5000 hit. Do those members just not understand or did the math incorrectly?

Outside of the performance add-on the price drop is in line with the tax credit drop (which no other brand got hit with so they are just keeping the car competitive)
The only other way (outside of performance) to see more of a drop, is due to the Pearl White painting changing from extra to standard. It was announced as changing to white so not a surprise but most expected a new flat white. At some point that may happen and the pearl white goes back to extra cost.
As far as the larger performance drop, the new pricing seems more in line with the pricing in the UK so while no one here expected it ; there was precedent.

 

[jebinc]

It might not make sense from an individual consumer's perspective, but I can see how the price changes make sense from Tesla's perspective. Consumer demand elasticity increases as the vehicle's price increases, so you can capture about the same amount of demand off of SR+ purchasers by dropping the price $900 after losing a $1,800 tax credit, where you need to make up for it completely for the LR with a discount of $2,000, and then you need to make the performance price really competitive to convince people to upgrade.

Yep, agree 100%. I only wish they would do something “off menu” for recent purchasers that is “sleeves off the vest,” so to say. For example, a LR AWD owner might get a free software upgrade, like P3D acceleration from 0-20. Just an example for illustrative purposes.

 

[brkaus]

$200/mo is tangible. Yes it’s my fault but seems like this is super drastic. Most consumer tech does not cost $60,000. I won’t be planning on trade in value as I hope to have this car for a very long time but it’s just the fact that the same car (with AWD) can be had for significantly less just weeks to months later for most. Still feels like the people that allowed Tesla to keep operating are getting a raw deal. Like I said though, hopefully this means Tesla can continue to sell more cars and improve and in 10 years I can buy a new one for cheaper. I don’t believe they need to continue to lower prices this much but clearly they know better than I do about what they need to do to survive.

A friend of mine purchased an almost identical M3 about 2 weeks after I did, talked to a different salesman, dealer incentives have changed, etc. He paid about $8k less than I did for my $60k car. Yes, I'm referring. to a BMW M3 I purchased a few cars back.

edit to add: And my "deal" was rated as a reasonable deal at the various online pricing places of the day.

 

[mikemi]

I just took delivery of a AWD white with FSD last Thursday. I called Tesla today to get a price adjustment (difference is $3410). Agent said she will create a case and I will see the refund in 30-45 days. She mentioned I will get an email with a case number. My plan is to call and verify the info on the case once I receive the email. But I am concern the 7 days will pass and I will miss the option to just simply return the car.

How does one start the return process? Who do I call?

 

[jebinc]

I just took delivery of a AWD white with FSD last Thursday. I called Tesla today to get a price adjustment (difference is $3410). Agent said she will create a case and I will see the refund in 30-45 days. She mentioned I will get an email with a case number. My plan is to call and verify the info on the case once I receive the email. But I am concern the 7 days will pass and I will miss the option to just simply return the car.

How does one start the return process? Who do I call?

"Ghost Busters"? jk

You can call the SC, I think. Open a chat session on the Tesla site to get an official answer to that very important, and timely, question. Good luck!

 

[dsgerbc]

Consumer demand elasticity increases as the vehicle's price increases

That's what they teach in econ101, but it in the real world it doesn't hold much. People going for performance don't have much else to choose from, and the top-trim Taycan that'd be comparable is gonna be way more $$$. This is not standard economics, this is Silicon Valley economics. Going for market share at every opportunity. I imagine some production bottlenecks got solved, they want to sell more cars profit be damned, they cut prices. Rinse and repeat ad infinitum.

 

[brkaus]

I would offer that you may care when the day comes for you to sell or trade your M3. We look forward to reading your future post on how happy you were with your trade in value - just sayin....

If I trade/sell and purchase another Model 3 I'm still about the same. My cost of purchasing a new car goes down too.

 

[brkaus]

Yep, agree 100%. I only wish they would do something “off menu” for recent purchasers that is “sleeves off the vest,” so to say. For example, a LR AWD owner might get a free software upgrade, like P3D acceleration from 0-20. Just an example for illustrative purposes.

Where do you draw the line? What is a "recent purchaser"? 15 days? 30 days? What about that person. is "recent + 1"?

 

[jebinc]

Where do you draw the line? What is a "recent purchaser"? 15 days? 30 days? What about that person. is "recent + 1"?

Yes complicated, but Telsa could choose to do the "illustrative" software upgrade to "all" prior purchasers, offer it to just "some" - up to the cut off date (whatever they choose), implement a "sliding scale" for Telsa "Store" credit or refunds (this would be similar to the class action law suit settled for Model S owners, previously - there, the longer you were without the functionality, the more money $$$ you received, etc.). It's not clean, I agree, but having an unhappy base/following isn't ideal either. Telsa could put the "brains" to work to come up with something to appease those not happy, or as happy (call it a "customer retention" incentive)… Look, we all (or mostly all) call our cellular, cable, XM, etc. companies when unhappy and receive all kinds of discounts (especially when suggesting cancellation) - this is just how it works these days. Telsa can come up with "something," I'm sure. Just sayin'

EDIT: And I'm not whining about my $2,200 three week hit, just trying to propose a "win-win" (hoping that Tesla monitors these forums)...

 

[KG M3]

QUOTE="ChrisH, post: 3836781, member: 14191"]I have a LR RWD with EAP which no longer exists but the AWD version is like $10,000 less than my car was at purchase time last summer. That’s like 17% less. That’s ridiculous. For people who stretched financially to buy this car that’s like a $200/mo difference in the payment. Yes I know some manufacturers do sales big enough to match this type of chance but not as a standard price and not many. It stings a lot. Good for new potential buyers I suppose but I could now buy a performance model for less than my car. Ridiculous.[/QUOTE]

It may be time for a sanity check.

Last July purchase price for LR RWD with EAP was $56k including Homelink and delivery.
Upgrade to FSD got you up to $59k.

Federal deduction of $7500 gets you to a net cost of

$48.5k for EAP
$51.5k for FSD​

Today, LR AWD with AP is $50.5k including Homelink and delivery
Upgrade to FSD got you to $56.5k.

Federal deduction of $1875 gets you to

$48.6k for AP
$54.6k for FSD​

The closest "apples to apples" comparison of net cost is the FSD version, where the change to AWD increased the net cost $3.1k. If you value AWD at $4k, you can make an argument that costs went down by about $1k.

Today's net cost for an AWD and AP is about the same as last summer's RWD and EAP.

Given that the majority of buyers do qualify for the Federal rebate, I don't see anywhere near the shift that was mentioned above. Something is ridiculous.

​

 

[mikemi]

"Ghost Busters"? jk

You can call the SC, I think. Open a chat session on the Tesla site to get an official answer to that very important, and timely, question. Good luck!

I called and spoke to another agent. He said he can see the case number and that it has been processed. He gave me the case number but I asked for a screenshot of the detail so I would have it on record. He said he couldn’t do that and that I just need to trust him.

I don’t have a warm and fuzzy on this. Once 7 day is passed, I have no power to do anything.

 

[jebinc]

I called and spoke to another agent. He said he can see the case number and that it has been processed. He gave me the case number but I asked for a screenshot of the detail so I would have it on record. He said he couldn’t do that and that I just need to trust him.

I don’t have a warm and fuzzy on this. Once 7 day is passed, I have no power to do anything.

I think you're okay having a case number (and knowing what that case number is). So, go enjoy your ride and stop fretting?

 

[PURE NRG]

I think you're okay having a case number (and knowing what that case number is). So, go enjoy your ride and stop fretting?

Agreed - no point in worrying about something you have no control over. Most people haven't been offered anything yet, so you're ahead of the game as far as I can tell. I, myself, have reached out to my Delivery Specialist who could only promise to look into it and get back to me, no promises.

 

[kchau]

Pricing just reflected in my order page.

 

[dsgerbc]

I don’t have a warm and fuzzy on this. Once 7 day is passed, I have no power to do anything.

Use that leverage to get a definite answer, with a credible threat of return. I'd return and reorder on day 7, without a firm written/e-mailed promise.

 

[jebinc]

Use that leverage to get a definite answer, with a credible threat of return. I'd return and reorder on day 7, without a firm written/e-mailed promise.

I had thought if you exercised your 7 day return right, you agree Tesla will not sell you another car for 12 months. If that is true, @mikemi needs to know that part of the story too.

 

[trm2]

I had thought if you exercised your 7 day return right, you agree Tesla will not sell you another car for 12 months. If that is true, @mikemi needs to know that part of the story too.

That appears to be for Europe only.