-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
PSA: MY price increases by $1K
- Thread starter kwhguzzler
- Start date
SilentWarp
Member
<insert favorite political figure/party to blame>
I doubt there are any new specs. Profits are at an all-time high, so I have a difficult time accepting the never-ending list of excuses for price increases. Whether being gouged by a dealer with markup, or by Tesla with price increases, this is the world we live in now, with no end in sight. Seems like a hundred years ago I was upset that 3 weeks after my delivery the MY price dropped $3K. Now the price is $8K higher than I paid. Pretty much convinced I'll be driving my MY until the wheels fall off, because I just can't see paying $8K more (and climbing) for the same vehicle that in my opinion was priced the most accurately at $49K + destination. And at least where I am, used MYs are at least $5K higher than a new one, which I also find absurd as dealer markups. With many statistics saying that greater than 50% of the US living 'paycheck to paycheck', I can't see how Tesla can sustain orders for a $60K+ car at this rate. I don't know which stats to believe anymore...
I doubt there are any new specs. Profits are at an all-time high, so I have a difficult time accepting the never-ending list of excuses for price increases. Whether being gouged by a dealer with markup, or by Tesla with price increases, this is the world we live in now, with no end in sight. Seems like a hundred years ago I was upset that 3 weeks after my delivery the MY price dropped $3K. Now the price is $8K higher than I paid. Pretty much convinced I'll be driving my MY until the wheels fall off, because I just can't see paying $8K more (and climbing) for the same vehicle that in my opinion was priced the most accurately at $49K + destination. And at least where I am, used MYs are at least $5K higher than a new one, which I also find absurd as dealer markups. With many statistics saying that greater than 50% of the US living 'paycheck to paycheck', I can't see how Tesla can sustain orders for a $60K+ car at this rate. I don't know which stats to believe anymore...
pepperoni
Member
<because Tesla can>
The sky high demand and limited production rate probably remain the biggest factor. Tesla has driven the cost of making their cars down to an average of $36K per car, so there is already considerable profit margin to absorb inflationary increases. Of course it is possible this is a reaction to the recent spike in nickel prices caused by Russia’s latest escapes in Ukraine. I believe I saw an estimate that this could add an extra $1K to EV costs if these prices stick, which matches Tesla’s latest price hike.
The sky high demand and limited production rate probably remain the biggest factor. Tesla has driven the cost of making their cars down to an average of $36K per car, so there is already considerable profit margin to absorb inflationary increases. Of course it is possible this is a reaction to the recent spike in nickel prices caused by Russia’s latest escapes in Ukraine. I believe I saw an estimate that this could add an extra $1K to EV costs if these prices stick, which matches Tesla’s latest price hike.
I have a feeling that people buying the MY are not the ones living paycheck to paycheck.
Agree, but there isn't an endless supply of people who aren't. There is a limit to who can afford a $60K+ vehicle in the US. And the size of the group who can afford is smaller than the group who cannot. Cheap ICE vehicles will be the only option for the larger of the two groups, and that outcome I argue is misaligned with Tesla's 'old' point of view of a world of sustainability.
Given that Tesla is now prioritizing orders with FSD dramatically (May vs. Dec for a MY), this is a revenue grab. Their margin per vehicle dwarfs any other manufacturer. I just personally choose to not participate in what I feel is taking advantage of the buying public at this point.
The Model Y is 1000% not worth the $70,000+ you will be paying after tax, title, and license. What a joke. I'm starting to lose a ton of respect for Tesla and seeing them for what they are...price gouging opportunists. Think of this, last time housing, automobiles, gasoline, groceries were all this expensive, the global economy collapsed in on itself. This time, the US is $40 trillion in debt. I hope you are all prepared for what comes next. There won't be a soft landing and the bazooka has already been shot with all the Covid relief and now billions in funding for Ukraine.
MY prices have gone up by, what, $10K in under 18 months? And still, people are still lining up to get on a lengthy waitlist to buy-up every single one. Demand for EVs is at an all-time high, and Tesla is the only company able to fulfill that demand. The investment they made in themselves, including the billions they have sunk into Giga Texas and Giga Berlin without a penny of revenue coming from either factory yet is largely due to the revenue they've generated and the profit they've captured.
Frankly, I'm surprised this hike didn't come sooner, and I expect it'll happen again in 2Q, possibly 3Q22 at the latest. The doubling of worldwide Nickel prices just made every Model's battery pack $1600 more expensive in a week, I think I read online yesterday.
I sincerely don't see this as "gouging". That's when a company jacks a price on a product you have to have because they own a monopoly on it. None of us has to have a Tesla, or even an EV. We choose to get one. If the price is too high, we pass and consider other options, simple. The price you pay is the result of an ongoing negotiation between the maker and the market. If the market won't bear a specific price and sales decline, the maker has to offer more or charge less. If the opposite is true - as it most definitely is for Tesla - then they can and should adjust their price upward to whatever the market accepts as a fair price until their supply and our demand equalize. If people are willing to pay more, and the increased revenue helps the company fulfill demand now and in the future, why shouldn't they?
Tesla is not a non-profit. If the market will bear a higher price, the company can and should adjust to that price, IMO.
Frankly, I'm surprised this hike didn't come sooner, and I expect it'll happen again in 2Q, possibly 3Q22 at the latest. The doubling of worldwide Nickel prices just made every Model's battery pack $1600 more expensive in a week, I think I read online yesterday.
I sincerely don't see this as "gouging". That's when a company jacks a price on a product you have to have because they own a monopoly on it. None of us has to have a Tesla, or even an EV. We choose to get one. If the price is too high, we pass and consider other options, simple. The price you pay is the result of an ongoing negotiation between the maker and the market. If the market won't bear a specific price and sales decline, the maker has to offer more or charge less. If the opposite is true - as it most definitely is for Tesla - then they can and should adjust their price upward to whatever the market accepts as a fair price until their supply and our demand equalize. If people are willing to pay more, and the increased revenue helps the company fulfill demand now and in the future, why shouldn't they?
Tesla is not a non-profit. If the market will bear a higher price, the company can and should adjust to that price, IMO.
Mateo83
Active Member
I just double checked. You are correct. Guess I got lucky that they let me keep the old price.
SWIPE
Member
I predict more $1K+ price increases each of the next two months. Truck hauling prices are going to add costs for Tesla and all businesses across the board among many of their “inflated” expenses related to fuel prices.
Pretty freaking amazing they are not paralyzed by the Chip crisis. When I picked up my new MYP the Manager said they’re doing 30-45 deliveries a day!!
Pretty freaking amazing they are not paralyzed by the Chip crisis. When I picked up my new MYP the Manager said they’re doing 30-45 deliveries a day!!
boulder.dude
Member
Tesla has no real competition still. They might have by now except for the chip shortage, which Tesla has navigated 10x better than other car companies.
When they do have competition someday, the prices will stop hiking.
When they do have competition someday, the prices will stop hiking.
The MYP is absolutely worth it when you compare it go other performance vehicles, especially when you take into account dealer markup. The LR... not so much imo
Similar threads
- Question
