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Surprise Model 3 Price Increase

Discussion in 'Model 3' started by mhpayne, Aug 2, 2018.

  1. mhpayne

    mhpayne New Member

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    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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  2. kengchang

    kengchang Member

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    Tesla never announced anything ahead
     
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  3. MXWing

    MXWing Active Member

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    Tesla finally figured out what a lot of people figured out:

    Demand for dual motor and 0-60 decrease by 1 second is inelastic at the 4K price point.
     
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  4. ebmcs03

    ebmcs03 Active Member

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    Man. I wish I got dual motor now.
     
  5. Kkainth

    Kkainth Member

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    Such hot garbage!! Wish I ordered my car last week! :(
     
  6. timk225

    timk225 Active Member

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    There's no '"surprise" about Model 3 price increases anymore......:eek:
     
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  7. Ron2andia

    Ron2andia Member

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    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.
     
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  8. MXWing

    MXWing Active Member

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    Demand for dual motor and 0-60 decrease by 1 second is inelastic at the 5K price point.
     
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  9. P85_DA

    P85_DA Supporting Member

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    s ;):eek::oops:...I didn’t do good in Econ :(
     
  10. Jedi2155

    Jedi2155 Model 3 has Arrived.

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    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.
     
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  11. MXWing

    MXWing Active Member

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    Look honey! Hardly any difference between cost of AWD and P!

    Elasticity is roughly a measure of consumer demand in response to price changes.

    Not sure if it’s really a driver for RWD but more leaving money on table.
     
  12. lairdb

    lairdb Member

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    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...
     
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  13. Dana1

    Dana1 Supporting Member

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    I haven’t looked at an order screen since May so this might be a silly question...is it exactly the same car? No color change?
     
  14. P85_DA

    P85_DA Supporting Member

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    Lol I thought @MXWing was the only Economist on TMC :oops:
     
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  15. Thomas Edison

    Thomas Edison Active Member

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    who knows, we might even see it go to 7k.
     
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  16. kengchang

    kengchang Member

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    Quoting myself again :cool::cool::cool:
     
  17. JPUConn

    JPUConn Active Member

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    More likely to require a premium paint, premium wheels or more costly white interior to get AWD if the true goal is to drive sales to RWD to move that inventory.
     
  18. JTwo

    JTwo Member

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    I don’t think they raised the price to reduce demand, they raised it because of the demand.
     
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  19. Stirfelt

    Stirfelt Member

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    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.
     
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  20. MXWing

    MXWing Active Member

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    Or they ran out of parts to make AWD/P and created new RWD rather than leave the line idle?
     
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