Tesla Slashes Model 3, S & X Pricing In China: Up To $51,000 Less

[TMC Staff]

Yuan the base (price) drops. Telsa vehicles are now a lot cheaper in China. Yesterday saw the introduction of the $35,000 Model 3 in the U.S. and reductions in prices of all variants of the mid-size sedan, as well as Model S and Model X. But the changes made to the company’s sales structure — moving all...
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[P100D_Me]

Actually what the title of this thread should be is "Current owners just got robbed by Tesla".

This is possibly the worst thing I've ever seen any company do to existing customers. I'm going to talk in my local currency, imagine you just took delivery of a $250,000 2018/19 P100D Model S (that was our local price two weeks ago), then you wake up to the news that the exact same car is now $165,000 (the Model-X is even worse, an $85,000 price drop), not because of anything else but Tesla's own decision to drastically drop the price - regardless of why they did it, they did it.
I understand prices fluctuate (usually up), but this is not a fluctuation, this is total disregard for anyone that purchased an S or X in the last two years because now their cars through normal depreciation should still be selling for more than a brand new one, but they just tanked.
It's bad enough that Telsa can't manage to be able to release software where everything actually works frustrating the heck of our owners, then to devalue our cars that much overnight is just another kick in the bollocks.
Before my warranty expires I will be selling this car because, well, why would you own a Tesla out of warranty!, but I'm 100% sure I'll not give them one more cent after they've pulled this stunt.

 

[Verdi]

I will never ever again buy a new Tesla. Fool me once, shame on you. Fool me twice, shame on me.

 

[iamronwahl]

Actually what the title of this thread should be is "Current owners just got robbed by Tesla".

This is possibly the worst thing I've ever seen any company do to existing customers. I'm going to talk in my local currency, imagine you just took delivery of a $250,000 2018/19 P100D Model S (that was our local price two weeks ago), then you wake up to the news that the exact same car is now $165,000 (the Model-X is even worse, an $85,000 price drop), not because of anything else but Tesla's own decision to drastically drop the price - regardless of why they did it, they did it.
I understand prices fluctuate (usually up), but this is not a fluctuation, this is total disregard for anyone that purchased an S or X in the last two years because now their cars through normal depreciation should still be selling for more than a brand new one, but they just tanked.
It's bad enough that Telsa can't manage to be able to release software where everything actually works frustrating the heck of our owners, then to devalue our cars that much overnight is just another kick in the bollocks.
Before my warranty expires I will be selling this car because, well, why would you own a Tesla out of warranty!, but I'm 100% sure I'll not give them one more cent after they've pulled this stunt.

 

[iamronwahl]

Actually what the title of this thread should be is "Current owners just got robbed by Tesla".

This is possibly the worst thing I've ever seen any company do to existing customers. I'm going to talk in my local currency, imagine you just took delivery of a $250,000 2018/19 P100D Model S (that was our local price two weeks ago), then you wake up to the news that the exact same car is now $165,000 (the Model-X is even worse, an $85,000 price drop), not because of anything else but Tesla's own decision to drastically drop the price - regardless of why they did it, they did it.
I understand prices fluctuate (usually up), but this is not a fluctuation, this is total disregard for anyone that purchased an S or X in the last two years because now their cars through normal depreciation should still be selling for more than a brand new one, but they just tanked.
It's bad enough that Telsa can't manage to be able to release software where everything actually works frustrating the heck of our owners, then to devalue our cars that much overnight is just another kick in the bollocks.
Before my warranty expires I will be selling this car because, well, why would you own a Tesla out of warranty!, but I'm 100% sure I'll not give them one more cent after they've pulled this stunt.

Really sorry you feel that way, but this how technology works and what you're saying is absurd. Its like saying I paid $1000 dollars for a 43" 1080p tv 8 years ago and now you can get on for $200, so you are never going to buy a tv again... Tesla just happens to be advancing so fast that they can drop prices. Sucks you paid so much but this is how things work with everything.

 

[P100D_Me]

Sucks you paid so much but this is how things work with everything.

Ah you must be a Tesla apologist? You've only just joined here, don't have a car in your signature so do you even own a Tesla to know what I'm talking about?

It's not how it works at all 'with everything', to compare a super expensive cars depreciation to a $1,000 TV is crazy. I don't think a P100D was ever 'worth' its asking price, just like an iPhoneX or Beats headphones are 'worth' the asking price. However, certainly in the case of a P100D there was no alternative so they could price it accordingly (well, that really goes for anything in the S and X range). Show me examples where Apple or Samsung dropped the prices of the current model top end phones by 30% overnight, show me where BMW or Ferrari drops the prices of their cars by 30% overnight. I wish BMW would drop the price of an M5 by 30%
I'm mad because this is just bad business practice towards customers that have supported the company up to this point. I purchased my car second hand so the original owner had already taken the depreciation loss so my pain isn't there. Aside from the fact I now have to call my insurance company on Monday and update my policy. I feel really bad for the unfortunate buyer that just had their car delivered in February 2019, or February 2018 for that matter, seriously, think about how you'd feel.
We aren't taking an 8 year time line, we are talking a matter of weeks where the cars are instantly worth 30% less than what they were, I've never seen that happen in the automotive world before, you might see that in retail stores but it's usually because the company is about to fold and they need to get rid of stock.
And all this so they can afford to sell more 'cheap' (eg, less profit) base spec Model 3's? They can't handle the current situation with service delays, lack of spare parts and inconsistent build quality, how is any of that going to get any better when the low profit Model 3's start to enter the market at the numbers they are hoping? I think they would have been better off abandoning the idea of the affordable EV (eg, the $35K Model 3) if it meant closing down stores and slashing the prices of the high profit cars and burning many people in the process.

 

[vangot]

I totaled my Model S last October due to a seizure (see my separate post) and have been put on a driving restriction until this May. However I bought a new LR model 3 in late December to capture the fed tax benefit. What adds insult to injury for me is that I haven’t even been able to drive this shiny new car sitting in my garage yet and the price keeps dropping on it way more than I would have expected just on depreciation alone in the last 2 months! I should have waited until the spring before sinking all that money - but who would have guessed Tesla’s business practice could be so harsh to their loyal long-standing customers? Ouch Tesla, really ouch.

 

[ac_power]

Even at retail stores there is a "best price" policy which offers refund to match new lower price within 30 days.
If TSLA can afford such discounts on new sales, would be reasonable to pro-rate them back for couple years and offer partial refunds to recent buyers.

 

[GoTzillaR]

Price reduction is getting madness in China and Taiwan now. Since China is Tesla's next target market, this is NOT good.

 

[Ludalicious]

Be allot cheaper building cars in China and selling them there too instead of shipping ones from the U.S.

Great business decision for Tesla.... Terrible decision by this trade war B.S.... Hey guys lets start taxing vehicles entering the U.S.... China.. No problem lets also tax them too.... "Tesla" Hmmm lets just start making cars their and selling them there too...

Good on Tesla. Most people take these decisions personal. Its strictly business IMO...

 

[Zorak03]

Stupid move. Chinese are currently mass protesting my blocking Tesla Stores and Superchargers.

 

[Ludalicious]

It's a vehicle that's based on technology. Clearly these vehicles will loose value as technology becomes cheaper and evolves. Same thing can be said for television's. This is comical... listen if you are worried about losing money dont buy one of the most expensive mass produced 4drs on the planet.

 

[TexasTeslaRacing]

It’s only temporary. Prices will go back up.

 

[P100D_Me]

Stupid move. Chinese are currently mass protesting my blocking Tesla Stores and Superchargers.

Is there any media coverage on this? I hope there is TBH, whoever came up with the idea to slash the prices like they did is a reckless fool with no regard for what it's done to the companies reputation.

Clearly these vehicles will loose value as technology becomes cheaper and evolves.

Not 30% - 40% overnight, that is unacceptable.

 

[Ludalicious]

Considerate it a sale price. Allot of manufacturers do this if they have year end inventory. This isnt anything new. How do you think they get rid of their 2018s when 2019s just arrived on the lot. 40% seems excessive but hey... that's business buttercup

 

[P100D_Me]

40% seems excessive but hey... that's business buttercup

Happy for you that you can be so flippant about money.

 

[Ludalicious]

Happy for you that you can be so flippant about money.

No problem.... If you need a hug I'm here for you.... And even more happier others dont need to spend the ridiculous amount of money some of us did.... Yes in life you can be happy for others even if it means some of us loose money.... That's FIRE

 

[ggnykk]

Is there any media coverage on this? I hope there is TBH, whoever came up with the idea to slash the prices like they did is a reckless fool with no regard for what it's done to the companies reputation.


Not 30% - 40% overnight, that is unacceptable.

I did the calculation. Prices definitely didn't drop 30 or 40% like you described. If you are talking about the US prices, the price cut in the most extreme case is only about 15%, vast majority of the cuts are 10% or less.

 

[GoTzillaR]

I did the calculation. Prices definitely didn't drop 30 or 40% like you described. If you are talking about the US prices, the price cut in the most extreme case is only about 15%, vast majority of the cuts are 10% or less.

This thread is about the price reduction in China and yes, it is that much on P models.

 

[GoTzillaR]

Is there any media coverage on this? I hope there is TBH, whoever came up with the idea to slash the prices like they did is a reckless fool with no regard for what it's done to the companies reputation.


Not 30% - 40% overnight, that is unacceptable.

Here you go, https://electrek.co/2019/03/04/tesla-owners-protest-price-cuts/