Tesla drops prices on X/S $20k. All colors free. Bye bye resale

[ginmqi]

Tesla isn't really any better. They jacked up prices last year which is similar to adding dealer markups. The difference is Tesla owns its dealerships while franchised dealers are largely independently owned.

Tesla has now essentially removed those markups (and more). The starting price of an MS Plaid at the beginning of the year was $137,440 and is now only $91,630. A drop of over $45,000 or 33% in just nine months!

wow so it started 137k.

It's now at 89,990. All colors are now also included in the price without additional charge.

 

[DB288]

after the pandemic there was a huge supply chain issue and a relative scarcity of supply…

prices went through the roof…

MSRP of non-tesla stayed the same but dealers were charging 65k for cars with a 52k msrp…

if you bought during that crazy period…you paid a premium that is now gone…

 

[tesluv108]

Man that plaid x or s is so sexy right now. Too bad I paid booko bucks for my s p90d. Lol oh well, at least the roof opens

 

[85vett]

Yes, I'm proposing that it would be illegal or have a reasonable approach where if price drops than within a reasonable 1000 or less and within a month you should get a price match. Like any other purchase you make, if price drops you can easily get a price match.

And if the price jumps after you buy something, you're going to pay the increased amount, right? For instance if you bought your car 1/20/21 would you want to give Tesla another $10K because the prices all jumped $10K that week. Nope, didn't think so.

Price match on "any other purchase"? This isn't Walmart and a $400 TV. Heck, I can't think of but maybe a couple companies that would give the consumer money back a couple weeks after they made a purchase if the price dropped. I remember several back in the 80's and 90's but almost none today. But, can you name a car company that does this?

I bought a M3P last year at the sum of $65K (no FSD, no EA). Just a regular performance with Red paint. That same car is nearly $20K less today after the tax incentives, or even just about $12K in general. So, yes, I get the frustration of buying a car high and seeing the prices plummet. This whole Tesla price roller coaster thing is why I didn't order an S last month and actually ordered an Audi S5. Now, with the slash in the S, I'm considering canceling the S5 and going S again as the S was never worth $90K to me, but at $75K it's a lot closer to the actual value I perceive in it.

The only thing that should be illegal is price fixing across industries. A company is well within their right to adjust pricing based off market changes and business needs.

 

[Jeremy3292]

Some people aren’t gunna like this, but if you’re paying $100k for a car you should:

1. Be wealthy enough to not be concerned about “resale value”
2. Smart enough to know that a car is not an investment and is simply an expense of living

Otherwise you’re just broke trying to look rich and then it is a problem. Remember “value” is all perception. No one had a problem paying COVID prices for vehicles the last few years also bc if you did, you wouldn’t have bought it.

Additionally, interest rates are 3x what they were a few years ago. Makes selling a $100k+ Model S/X untenable.

 

[f308gt4]

I agree with you guys, but I have to say it still hurts. I didn’t buy my Plaid a couple months ago. I picked it up on Wed. The part that really hurts is that I was originally supposed to pick it up on Saturday. Had I stuck to the original plan, I would have saved myself $10k. But Telsa kept texting me every day that my car is available and that I could reschedule for an earlier date. So I went ahead and completely rearranged my schedule so that I could pick it up on Wed afternoon. Then on Thursday night, they drop the price by ~$10k. Ouch.

I did text the dealer, but they said they couldn’t do anything. I even suggested that I’d be willing to split the difference if they gave me a credit on the Zero-G wheels, which are about $5k. Nope.

I understand both sides. But it still sucks. $10k is still a decent amount of money for me.

 

[vishnumrao]

Oh boy. Another 10K drop on the X and I will bite. Damn. So close yet so far.

Edit: not trying to rub it in or be insensitive. I lost money on my Y. But it is what it is.

 

[WhiteOnWhiteMY]

I enjoy all the people who tell others not to be upset that their car is suddenly experiencing a $20k price drop overnight and that it's their fault for feeling that way. Was the writing on the wall that Tesla needed to drop prices? Yes. However, my feelings haven't changed since the 3/Y price drop almost a year ago. Tesla determines the final sale value of the vehicle, one of the very few manufacturers with that control. No other manufacturer changes the MSRP of vehicles quite like Tesla. If there is a market adjustment, the dealership is the one that does that, not the OEM. At least in that situation, the amount you are paying over MSRP is outlined and clear. With Tesla, no one truly knows the actual value of these cars because the base value changes on the moods of Tesla's executives after their morning coffee and financial call.

This is an unfortunate realization of the direct-to-consumer business practice. It leaves many people who expected a standard depreciation curve to apply to their asset as they had with almost every previous car they owned.

I hate dealerships as much as the next guy, but man, at least I can appreciate how this has been handled by many of the other OEMs.


Congrats to those who are going to be able to take advantage of these lower prices, you win, for now.

 

[ucmndd]

I enjoy all the people who tell others not to be upset that their car is suddenly experiencing a $20k price drop overnight and that it's their fault for feeling that way.

Is anyone actually saying this?

I’d be upset too. But I’d not think I’m owed anything or that an actual crime has been committed or that we need to change the law to address it like others chiming in here.

 

[AMPd]

Is anyone actually saying this?

I’d be upset too. But I’d not think I’m owed anything or that an actual crime has been committed or that we need to change the law to address it like others chiming in here.

A company LOWERING the price on their product during times of high inflation and people are actually suggesting the government step in and create legislation to prevent that… smdh

 

[brkaus]

I paid $112k for my S100D (not plaid) new back in 2017...

 

[El joe]

Wow. Similar thing happened to me last year with the Y price drop.

I feel everyone's pain.

Same thing happened to me previously with the 3 price drop. At least they’re not discriminating. :/

 

[WhiteOnWhiteMY]

Is anyone actually saying this?

I’d be upset too. But I’d not think I’m owed anything or that an actual crime has been committed or that we need to change the law to address it like others chiming in here.

Let me clarify my wording: "People suggesting that they don't have a right to be upset at a company for affecting their car's resale value by arbitrarily lowering their base depreciation value."

Is it legal? Totally.

Is it brand loyalty suicide? IMO, yes.

 

[ks1972]

Let me clarify my wording: "People suggesting that they don't have a right to be upset at a company for affecting their car's resale value by arbitrarily lowering their base depreciation value."

Is it legal? Totally.

Is it brand loyalty suicide? IMO, yes.

I don’t think Tesla cares about brand loyalty, if they did, service won’t suck so bad

 

[WhiteOnWhiteMY]

I don’t think Tesla cares about brand loyalty, if they did, service won’t suck so bad

It'll, unfortunately, be what kills the company. Brand Loyalty is something that the other OEMs have/value and Tesla burns through it almost as much as lifted pickup truck owners burn oil when they roll coal to Teslas lol.

 

[FirstTime22]

I don’t think Tesla cares about brand loyalty, if they did, service won’t suck so bad

You are right, Elon and by result, Tesla - don’t seem to give the slightest **** about customer service, satisfaction or brand loyalty. I hope the chickens come to roost one day and they do something about that.

 

[ucmndd]

Is it brand loyalty suicide? IMO, yes.

I’ve gotta keep saying this apparently: EVERY brand does this, all the time. Just in a much less transparent way. I guess ignorance really is bliss.

 

[WhiteOnWhiteMY]

I’ve gotta keep saying this apparently: EVERY brand does this, all the time. Just in a much less transparent way. I guess ignorance really is bliss.

LOL, no, other established brands do not change the MSRP of vehicles quite like Tesla does. They use other methods that are much less shocking to used car markets.

 

[ucmndd]

LOL, no, other brands do not change the MSRP of vehicles quite like Tesla does. They use other methods that are much less shocking to used car markets.

Do you really think the used car market is blind or somehow bamboozled by new cars that habitually trade for $10k or more under MSRP because of cash on the hood?

Give me a break. Again, this is just ignorant wishful thinking.

 

[WhiteOnWhiteMY]

What even is MSRP?

Yesterday, it was $20k higher. What will it be tomorrow? Who even knows? Why purchase a car from a company that can't determine the value of their cars?

What is below MSRP? What is above MSRP? Rebates do not affect MSRP. Low APR does not affect MSRP. $0 down does not affect MSRP. Trade-in bonuses does not affect MSRP. If MSRP changes multiple times, it isn't a reliable base for anything.