I actually wonder if it’s a move to squeeze out the weaker up and coming competitors. Basically use the shrinking demand, worse economy, to throw their cash pile at this. Take a hit on profits and create competition that the smaller folks just can’t compete with at a 40-50k price point. Akin to the Walmart model.
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Tesla screwed us
- Thread starter carpendj
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First post here.
I guess most of us are naïve since I don't think anyone saw this coming. If the Y was considered a SUV for tax credit I don't think the price drop would have hapened.
This post is from someone who bought a MY one month ago. That same car today would be $12,000 less out of pocket PLUS a $7,500 tax savings. So it cost me $19,500 more 30 days ago. Sad.
thesmokingman
Active Member
They've been saying they are cutting prices since Q3 earnings report. Then again in Nov during the Twitter Spaces talk, going as far as saying reduce margin to zero if they had to in order to raise/increase sales during a recessionary period, ie. 2023. Once yall saw the deep cuts in China, that should have been a huge hint.
Elon Musk Joined a Twitter Space and Had THIS to Say About Tesla
Elon Musk joined a Twitter space and spent about 2 hours answering questions about Tesla. Here is what he had to say.
www.torquenews.com
Tesla's aggressive pricing strategy was explained by Elon Musk last month
Tesla CEO Elon Musk actually provided an early explanation about the company's new pricing strategy last month.
www.teslarati.com
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Aren't used Mach Es and pretty much anything used tanked recently? Even before this Tesla price cut? It sounds like a ton of used car dealers are in a massive world of hurt currently. Unless Tesla is paying top dollar for used cars, it seems like no difference like on the upside where folks sold used cars for more and paid more for cars, this is the opposite where used cars are less, and Tesla just cut prices so cars are less too.
If you look up that other old thread from like June 2022 about this exact thing of what happens if Tesla cut prices, I'd say 80% had the same mindset that it was impossible or it'd be a slow gradual cut. This being a Tesla forum, it's very biased and one sided. Maybe not exactly the same, but like when shorts put their own $$ at risk to short, it might be wise sometimes to at least see what someone else sees since the 80% might be wrong sometimes, especially when they/we/everyone is very biased.
A lot of any negative idea is quashed here pretty quickly. Sorry to hear about the sudden drop in equity which has some effect if a car is totaled, etc...but you weren't the only one.
They've been saying they are cutting prices since Q3 earnings report. Then again in Nov during the Twitter Spaces talk, going as far as saying reduce margin to zero if they had to in order to raise/increase sales during a recessionary period, ie. 2023. Once yall saw the deep cuts in China, that should have been a huge hint.
Elon Musk Joined a Twitter Space and Had THIS to Say About Tesla
Elon Musk joined a Twitter space and spent about 2 hours answering questions about Tesla. Here is what he had to say.
Tesla's aggressive pricing strategy was explained by Elon Musk last month
Tesla CEO Elon Musk actually provided an early explanation about the company's new pricing strategy last month.
Even though it was mentioned, people like see what the choose to see. Also, no one knows "when" or if this will happen and assuming if inventory never built up, this may never have happened actually.
Mach E owner here.
Yes. But I'd be careful drawing conclusions about why.
Ford dramatically increased prices on the 2023 models. They didn't really add any features, more like changed what features are available with what trim. The cheapest MME with a long range battery is now a Premium for $68k, was selling for around $52k last year.
My plan was to upgrade my Select to a Premium this year, but it was hard to justify the $14k difference. Then people started to notice prices were going down for used inventory, especially on Carvana and Carmax.
My guess is this is more Ford Fatigue than the economy. No one liked seeing the prices jacked. The MME not a bad car, but you could get a Porsche Cayenne for the cost of a Premium with all features selected. Luxury pricing runs counter to the brand.
The difference between legacy auto and tesla is everyone at tesla pays the same price. You can walk into a ford stealership and buy the exact same car as the guy before you bought and pay more or less. They have been doing it for years and people never know if they got screwed or not.
ucmndd
Well-Known Member
Post-reduction prices ARE normal prices.
The crazy run-up in the last couple years was NOT normal. Anyone who thought the Model Y was ever a $66k car was fooling themselves big time.
ucmndd
Well-Known Member
Oh, I did! I’ve been watching the Tesla game for a long time. This was inevitable.
They had no choice but to make their volume models eligible for the tax credit. The massive run up in prices over the past two years was completely unsustainable. $66k for a base Model Y was and is complete lunacy.
ZenRockGarden
Active Member
So... don't sell you car - just enjoy it.
MSM pitched it that was because they like to anthropomorphize stories about hardware and corporations. It seized the human attention.
But Elon has said the mission is not about crushing the competition, it’s about encouraging it so as to reduce the impact of climate change.
There’s some evidence he was BS’ing about this mission being his motivation
But still this is almost certainly a straightforward supply/demand business decision.
Tesla has algorithms for this and economists at hand to predict the shirt-term state of the economy, which Elon has talked about.
Right on the $66k. Price drop was unrelated to tax credits.Oh, I did! I’ve been watching the Tesla game for a long time. This was inevitable.
They had no choice but to make their volume models eligible for the tax credit. The massive run up in prices over the past two years was completely unsustainable. $66k for a base Model Y was and is complete lunacy.
expectations of making money, or increasing value, in a vehicle is a denial of history and reality.
a bubble popped. happened before, will happen again.
if you don't need to sell it (and only a very few might), then use it, abuse it, it's a CAR.
Ohh I totally agree with you on that one. guessing what the consumer will pay is a whole different ballgame. 250,000 dollar hummer ev.
tesla would never do that. Actually tons of people flipped and sold their tesla reservations and cars. You ain’t seen nothing wait till the cyber truck hits.
Any electric suv under 80k and produced in the USA qualifies for this credit. Any electric car under 55k qualifies. That’s why the s and x do not qualify. This was passed in the summer. It says it on their website guys. Anyway cars are not investments. It’s the bottom line. Anyone who picked up in the last few months knew about this.
everyone who follows tesla saw this coming.......they did it in china months ago. But I admit I didn't see a 23% dump, maybe an initial 10-15% and then smaller incremental drops. Don't be surprised if we don't see another 10-15% dive again. Remember the model 3 was supposed to be 35K initially, "model2" 25K, CT 39k. If Musk really did intend to make vehicles at those prices then who knows......hard to get inside that guys head to see the chaos.
I'm still waiting for another price drop before i get a Model Y. Maybe after march =P
Just watch inventory and look at it like a staring contest. This is easy if you aren't in a rush for a car. Sorta like housing prices. If cars piles up, they may cut again. There are certainly still a lot of $55k+ MYs right now.
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