I almost ordered a dual motor Model 3 for $60,500 yesterday and finally pulled the trigger today, but the price is now $62,500. Although I realize that price increases are up to the manufacturer, an advance warning that a price increase was coming would have been better for customer relations. Unpleasant surprises should not be part of the ordering process.
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Surprise Model 3 Price Increase
- Thread starter mhpayne
- Start date
I think it’s horrible. I’m getting things in order to order and the price point keeps rising. I’m a Tesla fan but bring it back down.
Demand for dual motor and 0-60 decrease by 1 second is inelastic at the 5K price point.
Jedi2155
Model 3 has Arrived.
s...I didn’t do good in Econ
Inelastic = Demand curve doesn't respond to price changes (example gasoline)
Elastic = Demand curve follows price changes (example luxury goods)
Going by memory.
Basically Tesla wanted to reduce demand for AWD by shifting it to RWD. They thought raising it to 5k would impact it. It didn't. So now they're trying 6k.
lairdb
Member
Close. Inelastic demand changes less than the price change. Elastic demand changes more than the price change.
If the price of gas doubles, demand will not be cut in half. It will be cut by some, as people curtail unnecessary travel, but not by half, since much travel is necessary. Gas demand is inelastic.
If the price of romaine lettuce doubled, demand would drop by more than half, since people would switch to bibb or arugula or chard or etc. Easy substitution tends to feed elasticity.
Then there's Veblen goods and Giffen goods...
Thomas Edison
Active Member
I don’t think they raised the price to reduce demand, they raised it because of the demand.
JTwo - I agree.
I posted this on another thread today:
"Today a notice arrived that new LR, RWD M3 are available right now!.
What gives? Has the marked dropped on RWD, non performance new M3 Tesla's?
I might consider the offer at a reduced cost ..... say the $35k that they got everyone so excited about, but do not sell.
I'm sorry .... but it's a "bait and switch" scheme."
I'm guessing the RWD market has softened considerably. Tesla assembled all those vehicle in July, and now has them stored on lots.
I posted this on another thread today:
"Today a notice arrived that new LR, RWD M3 are available right now!.
What gives? Has the marked dropped on RWD, non performance new M3 Tesla's?
I might consider the offer at a reduced cost ..... say the $35k that they got everyone so excited about, but do not sell.
I'm sorry .... but it's a "bait and switch" scheme."
I'm guessing the RWD market has softened considerably. Tesla assembled all those vehicle in July, and now has them stored on lots.
Or they ran out of parts to make AWD/P and created new RWD rather than leave the line idle?
