Tesla cuts car prices by up to $5,000 in USA and China

[mo.dilwar]

Tesla has cuts Model 3, S and X prices by up to $5,000 in the USA and China.

Cant see any price changes in the UK. But if the price reduction is to stimulate new car sales after the lockdown maybe we will see price cut in the UK soon ¯\_(ツ)_/¯

Tesla cuts car prices by up to $5,000

 

[j1mgg]

That would be good for the cars over £50k to combat the removal of the grant.

 

[Durzel]

M3P is comfortably over that threshold, and M3 LR and SR+ are already under.

I'd say there's a zero percent chance of Tesla dropping £7k off the price of the M3P, particularly as they only lowered the price in USA and China by $2,000 on the Model 3.

 

[chrisgrogan2]

In Germany I have a MX on order and it looks like it would be about 2000 euro cheaper now. However, free super charging is not given anymore. I know I won't super charge that often, but it is a nice perk to have and great as a resale incentive.

 

[Jason71]

Given the current exchange rate they may not be keen to eat into profits further. Especially if the BIK changes mean there is still strong demand anyway

 

[Gamemeister]

Another couple of points for consideration is the VAT removal of EU vehicles that was rumoured as part of a recovery package. I know the UK wont be part of the EU when/if this even materialises but maybe the UK could follow suit to make its internal automotive market attractive?

Final point on where a potential price cut could occur is via the US trade deal being negotiated. But isnt there a 10% tariff on US cars to EU? Im sure trump will be eager to cut this to zero.

Tesla may not have not the margin available to cut prices in the UK just yet. So hopefully one of the two happen. Either one will give them a few thousand to play with for which hopefully can be passed on to the consumer.

 

[Gamemeister]

Another couple of points for consideration is the VAT removal of EU vehicles that was rumoured as part of a recovery package. I know the UK wont be part of the EU when/if this even materialises but maybe the UK could follow suit to make its internal automotive market attractive?

Final point on where a potential price cut could occur is via the US trade deal being negotiated. But isnt there a 10% tariff on US cars to EU? Im sure trump will be eager to cut this to zero.

Tesla may not have not the margin available to cut prices in the UK just yet. So hopefully one of the two happen. Either one will give them a few thousand to play with for which hopefully can be passed on to the consumer.

I ment VAT removal on EV vehicles in EU. apologies

 

[gangzoom]

In Germany I have a MX on order and it looks like it would be about 2000 euro cheaper now. However, free super charging is not given anymore. I know I won't super charge that often, but it is a nice perk to have and great as a resale incentive.

The Model X had a starting price of £64K back in 2016 (just as the Giga Factory came online), its essentially the same car today but with a bigger battery. Given all advances Tesla have made with production efficiency, lower battery cost, and the fact Tesla boasted profit margins of 20%+ per car in 2016, the S/X should be CHEAPER now than in the past, but that's sadly not the case.

The current S/X are cash cows - margin must be 30%+ on these cars, Tesla can easily slash prices to boost demand but they don't need to as the 3/Y generate most of demand these days.

Might be a good time for buyer though if Tesla need to shift stock, Tesla have done some pretty big inventory discounts for end of quarter results before so we'll probably the same again this year.

 

[Godsense]

In Germany I have a MX on order and it looks like it would be about 2000 euro cheaper now. However, free super charging is not given anymore. I know I won't super charge that often, but it is a nice perk to have and great as a resale incentive.

I'm didn't think it was transferable these days?

 

[Exy1]

Perhaps when the inventory cars stop disappearing within hours of appearing they may consider reducing prices.

 

[Okrib]

Prices on the Model X seem to have dropped (and they have removed free Supercharging).

Was pricing one up last week (long range, black, 7 Seats, white leather) and it was £94k odd.

Now pricing up at £89k.

 

[Fellsteruk]

One thing I’ve learnt with Tesla and pricing... it’s flops all over the place just have to go with it, never try to predict it or make sense of it because mostly it never makes sense.

 

[DMC-Orangeville]

The prices dropped in Canada, too.
$7000 ($CDN) for S and X, $3000 for 3.
The $CDN has dropped vs the $US since the pandemic started, so it's not a currency issue. I would suspect you will see a drop in the UK soon.