jgd108
Member
I'm tempted to pull the trigger and buy another RWD LR since the full federal discount is on and it's guaranteed at this point you get it this year. Who knows there might be "hidden" discounting end of this month / Q3..
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Surprise Model 3 Price Increase
- Thread starter mhpayne
- Start date
eprosenx
Active Member
This is how car pricing works. Manufacturing capacity is actually pretty fixed (very limited things that can be done to ramp capacity). So price is the outlet used to adjust demand. The major manufacturers do this on a monthly basis. This is what factory incentives are. If they are backing up certain types of vehicles in the yards and at the dealerships then the factory can provide free financing or rebates to clear those out. Also, the dealerships themselves will be more aggressive on vehicles they have too many of.
This is supply/demand economics at work. Tesla is working to keep all their assembly lines full and to maximize profit. This is what all companies do.
Prices will come down when demand slacks or production capacity increases.
Eventually the model 3 will have versions that are very economical I think once Tesla has enough capacity to make a lot of them and initial demand is satiated (and other manufacturers have legit competition to put pressure on Tesla).
Tesla is reducing the demand on AWD while increasing the demand on RWD/P
voip-ninja
Give me some sugar baby
Don’t you already have your car?
How are these price increases affecting you other than increasing your resale value?
Uncle Paul
Well-Known Member
The prices of Tesla vehicles, accessories and options change all the time.
That is why the exact moment you place your deposit determines your delivered price.
Sometimes Tesla will make a price decrease retroactive, but sometimes not.
Like most everything else, such as the price of a gallon of gas. You might pay one price on your way to work in the morning, but see an even lower price at the pump on your way home. (realize not a good example for Tesla owners).
That is why the exact moment you place your deposit determines your delivered price.
Sometimes Tesla will make a price decrease retroactive, but sometimes not.
Like most everything else, such as the price of a gallon of gas. You might pay one price on your way to work in the morning, but see an even lower price at the pump on your way home. (realize not a good example for Tesla owners).
Jedi2155
Model 3 has Arrived.
You guys are probably right, I was mistaken when I said I they were trying to reduce AWD demand.
What I meant to say was that they were trying to balance the demand between AWD and RWD more which is what others have already said.
No company wants to reduce demand on their product, but rather try to increase overall sales. Too many people would rather wait to get an AWD than a RWD right now based on the current pricing.
What I meant to say was that they were trying to balance the demand between AWD and RWD more which is what others have already said.
No company wants to reduce demand on their product, but rather try to increase overall sales. Too many people would rather wait to get an AWD than a RWD right now based on the current pricing.
ℬête Noire
Active Member
This is my guess, well not flat ran out but production is constrained. So shake the tree and see what falls out. If demand remains high at $6000 that's okay, because now they've got extra cash to cover the increased cost of bumping up that part supply rate. If demand eases off that's okay too because they'll still keep the line busy moving RWD and getting revenue on the books.
I lack confidence that demand will be in-elastic going $5K -> $6K. I wavered a bit at $4K because of the RWD's %5 better highway range (at the time it was feared the AWD penalty was closer to 10%) but ultimately made my choice in confidence. It would have been a tough call if I'd delayed until the $5K bump. Maybe I'm an oddball but I probably would have bailed at $6K, I expect they'll get noticeable movement here.
Curious thing though now is this now makes the step from AWD to P only $9K. Could be trying to draw purchasers up to that step? Represents a fairly sizable lowering of the mental barrier dropping that step from $11K to $9K.
EDIT: My guess as to why the misread this initially was when they tested the order waters for a couple hours in May people that were ordering didn't have much confidence that they'd get their AWD before the Fed Tax Credit stepped down to $3750. I know I was going to pass if there was a risk it was going to cost me $5000 + $3750. But then they finessed the Tax Credit and that took all the risk out, I was pumped for $5000 initially until the range numbers came out.
4 digit and not a five digit incremental move.
I guarantee Tesla pulls some stuff end of year to only guarantee P models for end of year delivery for those who decide over Thanksgiving dinner they want a Model 3.
Also expect way fewer rejects for minor paint and scratches as well.
voip-ninja
Give me some sugar baby
Haha @timk225 still has PTSD from his victimization by Tesla.
He’s still resentful at being forced to buy his Model 3.
Bizarre that anyone can claim Tesla is making them do anything.
See below. Yes, mind control forces are at work..!
Pittsburgh non-owner, reserved in the first 10 minutes on 3/31. Got my configuration email a few weeks ago. I didn't place an order for a 3, because I don't need or want the outrageously overpriced options, the LR battery and PUP interior. Then Tesla announces that the $35,000 configuration that Elon promised us won't "be available" for another year.
After some thinking, I decided to go with a CPO Model S instead, but after missing the order on one car, and not being approved for enough financing on another, I started working the numbers. If I got a $45K CPO S, kept it a year, then bought a $35K Model 3, then between depreciation and paying loan fees and sales taxes twice, it wouldn't be much of a good deal.
So, very begrudgingly, I will order my 3 as is with the $49,000 configuration that is being forced upon us. Only thing I need is an ok from the finance place, so I should know by monday or tuesday about that.
Tesla is reminding me of when I lived in the SFV in Los Angeles for several years, and you couldn't go near some supermarkets or 7-11's without some panhandler trying to get change off of you. Tesla is the panhandler now. They are saying "Want a 3? Fine, but you can only have one if you order these extra options that are mostly PROFIT for us".
The word "option" implies that these items are OPTIONAL. Forcing us to get them to get the car is not optional.
Tesla, for your greed, I feel that you owe me more for my $49,000. Maybe a performance upgrade so that my 3 can pull sub 4.5 0-60 runs and high 12's in the quarter mile. At least that's something.
Some of you may be saying that I should just keep my current car and wait to order a 3. True, but at the moment I have a guy lined up to buy my current Challenger R/T at a price nearly $2K over the "excellent" condition value on kbb. I think he has lots of money and he likes the car. So if I don't sell to him, I will lose thousands by selling to anyone else.
First World Problems!
Jedi2155
Model 3 has Arrived.
Technically, they only increased it by 1k, because it was 5k originally, then reduced to 4k, and returned it back to 5k, and now its 6k. Its actually $2700 because they increased the delivery fee to $1200 as well.
If Tesla wants to shift sales to RWD they need to offer a snow wheel/tire package the with tires that people want (either Michelin X-Ice XI3 or Nokians). Then do some tests of the RWD using that snow tire package to show that traction/stopping in at least 4” of snow and ice is not an issue. That will help soothe people who think they need AWD for winter traction reasons.
voip-ninja
Give me some sugar baby
I don’t think they want to shift sales. They want to maximize profit. Until there’s a pull back on dual motor at the current price they’ve priced it too low.
Well, Tesla is shifting sale to RWD which Tesla can deliver before Q3 ends
What are you talking about? They very much MADE me buy my car. They produced a car that is beautiful, powerful, incredibly safe, quiet, clean, and full of features and improvements made via OTA updates. Then they sold it at a price that was within my capabilities to buy. So yes, they MADE me buy it.
