I still see January - March 2023.
It's been same for a while. What changes do u see?
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Pricing strategy for 2023?
- Thread starter Mike7564
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It's been same for a while. What changes do u see?
December was a response to last year's EoY cluster, caused by the BBB Legislative anticipation of a tax rebate (that didn't happen).
So many people tried to delay deliveries into 2022 that Tesla had a problem making deliveries.
THIS YEAR, Tesla decided to build inventory and provide incentives.
Those incentives were CASH NOW vs a Tax CREDIT in 15 months. Plus SuperCharger access.
You did see that for what it was, right? I don't know how else to bring you up to speed.
Tesla no longer moves cars between SCs I've been told. So if you order a MYLR7 with tow in Orlando and there's an exact config like that in Miami... TOO BAD!
So inventory nearby (not exact at your location) is meaningless. It will be produced at Fremont or Austin and shipped to your location.
So inventory nearby (not exact at your location) is meaningless. It will be produced at Fremont or Austin and shipped to your location.
Those incentives last year weren't tied to the tax credit. Tesla made the amounts match in the US probably for psychological reasons and in case anyone was holding out, but they did price cuts in Canada. They did price cuts across various European countries, they did price cuts in China, they offered free supercharger miles and insurance discounts and whatever else. They're offering big discounts in Singapore right now.
It's amusing because if you brought Elon in here, he would school us all on the impacts of pricing. I can't remember his exact quote about this recently, about how much your customer base is cut down by $xxxxx price increase. In the middle of last year, he was on record calling the current prices "embarrassing".
But there are also other implications here though with price cuts potentially devaluing financed cars right now and putting the loans underwater and then further devaluing the used market, which has of course already come way down. It's kind of a tough spot to be in with needing to also massively ramp production in this environment.
It's amusing because if you brought Elon in here, he would school us all on the impacts of pricing. I can't remember his exact quote about this recently, about how much your customer base is cut down by $xxxxx price increase. In the middle of last year, he was on record calling the current prices "embarrassing".
But there are also other implications here though with price cuts potentially devaluing financed cars right now and putting the loans underwater and then further devaluing the used market, which has of course already come way down. It's kind of a tough spot to be in with needing to also massively ramp production in this environment.
Unless you have insider contacts
But even insiders get blindsided - like the $3750/$7500 cut in prices in Dec.
What I'm seeing is high inventory right now, in my local area, as high as December before the discount, keep this up and it'll be more discount in 2 months.
At the end of the day you do agree that if the consumers chose not to buy then the price go down. Therefore the consumers do have a say in pricing.
ZenRockGarden
Active Member
Yep - simply the December-tax-rebate-anxiety cycle unwinding as expected
with Tesla MY having sold as much as all other EV's combined in 2022 (see Electrek yesterday)
with no other manufacturer able to deliver serious quantity (same source)
with tax rebates becoming available
with EoY overhang inventory still in the mix (as I've discussed - response to 2021 EoY tax nonsense)
I think it's a little early to be pronouncing your wishful price reductions.
Business doesn't necessarily follow Economics 101 - prices can rise as well as fall with demand reductions.
Fixed costs don't decline, and inflation is raging. Tesla is building factories and needs cash.
It can happen but it's way early to pitch that idea, unless you're just wishing for someone to lend credibility to you.
I'm not that guy.
insiders that 'leak' without permission get sidelined or fired.Unless you have insider contacts
But even insiders get blindsided - like the $3750/$7500 cut in prices in Dec.
Tesla is very tight.
ucmndd
Well-Known Member
As they always do at the beginning of every quarter given Tesla’s well-established logistics pattern. This is not a sign of anything demand related.
I feel like we're just going in circles,
Let's just state facts, Tesla has been able to increase priced because of demands, when demands went away, aka December, they discounted to sell. December demands was affected by the rebate.
Come January, inventory is high again, I'm see 30+ in my local area, folks are waiting for Tesla to figure out how to get to the 55k for the tax rebate, what do you think will happen again? Will Tesla continue to pile up inventory or will they again discount to unload inventory? Will history repeats itself?
Anyone who want a Tesla but doesn't need a car right away should wait, buying now you're already paying 7500 more than someone did in December.
Let's just state facts, Tesla has been able to increase priced because of demands, when demands went away, aka December, they discounted to sell. December demands was affected by the rebate.
Come January, inventory is high again, I'm see 30+ in my local area, folks are waiting for Tesla to figure out how to get to the 55k for the tax rebate, what do you think will happen again? Will Tesla continue to pile up inventory or will they again discount to unload inventory? Will history repeats itself?
Anyone who want a Tesla but doesn't need a car right away should wait, buying now you're already paying 7500 more than someone did in December.
What do folks here consider local? 50 miles, 100 miles? I see 150 (seems to like this #) MY within 100 miles from me. I see 197 (within 100 miles) in the bay area. I'm of the camp that if the Tesla MY doesn't get the new EV tax credit and Tesla doesn't cut prices, 2023 Q1 numbers will be pretty bad. 2022 Q4 numbers wasn't affected as much I don't think supply wise.
A good question is would anyone buy a car now or suggest a close family/friend to buy a car right now at this price point?
A good question is would anyone buy a car now or suggest a close family/friend to buy a car right now at this price point?
ZenRockGarden
Active Member
There were also tons of idiots like myself who either removed hold or placed new order in the last 10 days of 2022 hoping to get it before EOY, lol. That'll have impact on the backlog, but many may end up cancelling (losing $250 in the process of course) the order. It's not a good time to buy right now unless you absolutely need a vehicle, and even worse if your delivery estimate is beyond March as Tesla may only qualify for $3,750.
The MYAWD price is disappointing but at least it seems there'll be more good deals on Tesla CPO cars.
The MYAWD price is disappointing but at least it seems there'll be more good deals on Tesla CPO cars.
Dec 2023 should be another interesting month, the IRA has a provision that in 2024 the credit will be at the 'Point of Sale', I would imagine that those who are about to take delivery in Dec might want to push that to Jan to get the credit upfront vs waiting for tax season.
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