Pricing strategy for 2023?

[arbitrage000]

Today’s 3/ Y price matches the true value of the cars. The MYLR is a 50s car and not worth $66K.

Agreed.
A friend has an ID4 on order, no ETA. Just a few days ago he was itching to switch to get one of the MYLR sitting in inventory. I told him not to even think about that at the current price. I told him that even my March 2022 pricing was IMO overpriced and June 2022 onwards pricing was crazy for this car.
He woke up to a nice surprise this morning and he may snag a MYLR for $8K less than I did. I think this price increase was a little over the top but I do think the price is reasonable now for the car you get.

 

[WyoDude]

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.

You were saying….

 

[boulder.dude]

Lots of earlier posts on this thread stating that the December cuts were temporary, inventory had plummeted, and price reductions were unlikely. Can those folks please chime in here?

 

[Snow Drift]

Lots of earlier posts on this thread stating that the December cuts were temporary, inventory had plummeted, and price reductions were unlikely. Can those folks please chime in here?

I'm one. At the time I believed it all.

The December cuts were based on a looming Federal Credit, that was true.

Inventory at the end of the quarter did sell. Cars for sale now may not have been available in 2022 (December or January builds). The IRS made them more expensive by calling the Model Y 5 Seater a car.

Price reductions were unlikely. Companies don't normally reduce prices that much. The IRS screwed it all up.

I was wrong. Enjoy a new Model Y for a great price.

 

[acpd]

I was saying for a while that $66k for MY is absurd. On multiple occasions, I was called out by few that I had an agenda. . blah.. blah..

Even I didn't expect this deep price cut. I was expecting sub $55k MY but I thought that would be 279 mile version.

 

[fonger]

I was wrong also, I said there will be a price cut of some sort, maybe a lesser model...I did not anticipated this steep of a cut in.

 

[Wahiawahi]

I expected the price of the M3 to be lower. I wouldn’t be surprised if they dropped it again.

 

[matthewsjl]

Lots of earlier posts on this thread stating that the December cuts were temporary, inventory had plummeted, and price reductions were unlikely. Can those folks please chime in here?

I was one of these too - but the facts are that with the end of year discounting Tesla pretty much sold all the MY and M3 they had to sell (available inventory was hovering under 100 cars for the whole of the US for the MY at the end of year). That proved that a $60k price point for a MY LR would work - and I didn't expect a discount greater than this but once Tesla proved demand at $60k, I expected the price to be at this level now Austin is pumping out MYs.

It is very clear that the current price cut is to make the MY5 qualify for the Federal Tax Credit which opens up a lot more buyers. It's going to get interesting if the Federal rules are streamlined and if the MY could be classified as an SUV with an $80k cap. If that happens, I think prices rise to the $60k mark for the MYLR.

 

[Mike7564]

You were saying….

Hahahhaaaa

 

[Mike7564]

Lots of earlier posts on this thread stating that the December cuts were temporary, inventory had plummeted, and price reductions were unlikely. Can those folks please chime in here?

I know. Crickets.

Alas, lost way more money on TSLA position than I gained on my order discount.

Next steps, mark my words, is they will offer more add on features for those who can pay more/don’t qualify for the tax cut. Matrix, maybe HD radar, nicer interiors, etc. akin to a touring/tech package.

 

[Mike7564]

I'm one. At the time I believed it all.

The December cuts were based on a looming Federal Credit, that was true.

Inventory at the end of the quarter did sell. Cars for sale now may not have been available in 2022 (December or January builds). The IRS made them more expensive by calling the Model Y 5 Seater a car.

Price reductions were unlikely. Companies don't normally reduce prices that much. The IRS screwed it all up.

I was wrong. Enjoy a new Model Y for a great price.

Props to you for putting yourself out there. Prob no one expected this magnitude/speed though. Myself included.

 

[eleison]

I expected the price of the M3 to be lower. I wouldn’t be surprised if they dropped it again.

Sandy Munro says tesla can reduce the price of a model 3 to $30k (I think it's for the standard version?). This was in a podcast a month ago. This was after he did a analysis on the cost of materials and labor.

To really know how low tesla can go, we need more accurate information on the cost of a model 3 or model y. However, knowing how focused tesla is on cost savings and being hyper efficient (heck, tesla still saves money by not advertising) , I think how much tesla can lower the prices of their products by will surprise a lot of people.... even me... remember tesla bought a "giga" mold to help build their cars. They custom ordered it and it was the biggest mold being used, bigger than any manufacturer's.

Now imagine being other car manufacturers that don't have the ability to lower prices as much without incurring a lose.

 

[tangible1]

You were saying….

I guess Elon thinks a recession is looming.
either way, this is a market share grab for the ages, and people should dump the other car OEM stocks.

 

[tangible1]

Lots of earlier posts on this thread stating that the December cuts were temporary, inventory had plummeted, and price reductions were unlikely. Can those folks please chime in here?

I guess Elon thinks a recession is looming.
either way, this is a market share grab for the ages, and people should dump the other car OEM stocks.

 

[tangible1]

I was saying for a while that $66k for MY is absurd. On multiple occasions, I was called out by few that I had an agenda. . blah.. blah..

Even I didn't expect this deep price cut. I was expecting sub $55k MY but I thought that would be 279 mile version.

I guess Elon thinks a recession is looming.
either way, this is a market share grab for the ages, and people should dump the other car OEM stocks.

 

[tangible1]

Hahahhaaaa

I'm happy to be wrong for the benefit of many!

 

[eleison]

I guess Elon thinks a recession is looming.

Elon has been saying either we are in a recession or there's going to be one for months now.. i cant remember exactly... it's on Twitter...

 

[tangible1]

Elon has been saying either we are in a recession or there's going to be one for months now.. i cant remember exactly... it's on Twitter...

Twitter and the real world are two different things, but Elon has backed it up.

 

[tangible1]

As a reservation holder who punted on the $7.5k because I believed 2023 pricing/features would be more favorable…. Hate to say “I told you so” as I grin at the updated pricing email.

As a shareholder, it obviously sucks and probably doesn’t bode well for the rest of the year.

hey, you bet on yourself. congrats.
It's a very bold move on the part of Tesla to drop pricing that dramatically and should buy both more fans as well as customers.
I pity the position Ford GM and Stellantis etc are now in. Not only a competitor with a better, proven product, but also one with a serious ability to deliver.

 

[PNWLeccy]

It'll be interesting to see the new MYAWD price, my guess is $49,990.

View attachment 895194
Well everyone, here's Tesla pricing strategy for 2023. Sux for us recent buyers.

New prices for missing models that I saw in inventory before they disappeared:

• M3 LR : $49,990
• MY AWD: $50,990

I feel like the step up to M3LR prob makes sense for some (+86mi, +$6k) but the step down to MY AWD makes no sense (-50mi, -$2k)