Teslas future looks bleak tainted

[buster84]

This is not a thread directly talking about the recent 20k to 30k loss in value current tesla owners have faced over the last 72h. We already know that anyone who bought before the price change is screwed and not than Lilly won’t be buying another Tesla or tesla product again.

This thread is about the future of all tesla owners. Think about it, dealers all over America are sitting on billions in losses caused by Elon musks drastic price reduction. He always raised prices by 1-3k a quarter but now surprised the world with 8-13k overnight cuts not dropped out over a few quarters. You can almost guarantee that car dealers won’t be douped or ripped off again by Elon musk.

Here are some serious questions for new buyers.

1) when making your purchase are you afraid that won’t musk could drop the price again by another 10k in a few months? If he did it once he could do it again.

2) what will you do with your tesla is dealers STOP taking them as trade ins and buying them outright? If you have no one to sell your car too then your $50,000 purchase is worth $0.

3) do you trust in Elon Musk direction to fix the company and plan to continue buying their products or are you done with tesla for good after this?

As for me, What he did to ever car owner and dealer overnight is enough to collapse the entire used tesla market to where no one will buy these cars and I’ll definitely not be buying any of his cars in the future after this. I’ll just drive my current m3 until it dies or gets totaled.

 

[cmy4x4]

WOW! If you bought your Tesla as an investment, then sorry about your luck. However, I think the majority of people bought their cars for transportation and got the best electric vehicle available at the time. The competition is heating up and NOBODY can see the future. Kudos to those that are able to take advantage of the current prices.

 

[E90alex]

I think this will definitely make third party dealers more weary to take in Teslas or will end up severely lowballing on trades in the future. Dealers were printing money with used Teslas and I suspect many were mass ordering new ones just to resell.

Although I doubt Tesla can lower the prices even more without taking a big loss on each car.

 

[buster84]

Kudos to those that are able to take advantage of the current prices.

Kudos to those who spend 50k to not be able to find a dealer to ever touch a used tesla again. It had nothing to do with it being an investment or loosing its value it has to do with the fact that he dropped it drastically over night destroying the used car maket and destroying his reputation that could lead to no one being able to sell there cars even if you purchase it a year from now. Its the outcome that comes after that matters more than anything. BTW no other car in existance has ever droppd more than 10k in value overnight. It just doesnt happen because it can destroy a brands reputation overnight and scare dealers into never touching teslas again.

I also wouldnt be suprised if banks drop him because of the massive losses they will have over people letting their cars get repod over loosing 20-30k in value.

 

[SteveM3Perf]

This will be last weeks news soon!
Within a few months it will all be forgotten by those who know now.
Many more people won’t even know the history of Teslas pricing policy - they will just look at car prices at the time they are looking to buy a car.
If they are happy with the price at that time - they will buy.

 

[Black306]

OK, you got burned. That doesn’t mean Tesla and the industry is going to crumble. There are people that are happy of the price drop; people that are on the verge of getting one. As for the people that already have them, only the ones looking to sell/trade in are pissed. I’m still looking to enjoy this car for at least 5 more years, more likely 7+ since I typically keep cars for 10+ years. I’m also happy that the prices dropped cause that’s a sign the Cybertruck will be sold at a lower price. To think a $50k purchase will go to $0 cause of a price drop from the manufacturer is not realistic.

 

[buster84]

OK, you got burned. That doesn’t mean Tesla and the industry is going to crumble. There are people that are happy of the price drop; people that are on the verge of getting one. As for the people that already have them, only the ones looking to sell/trade in are pissed. I’m still looking to enjoy this car for at least 5 more years, more likely 7+ since I typically keep cars for 10+ years. I’m also happy that the prices dropped cause that’s a sign the Cybertruck will be sold at a lower price. To think a $50k purchase will go to $0 cause of a price drop from the manufacturer is not realistic.

This thread is not about me getting burned its about the future of tesla. Do you really think car manufactures will take teslas as a trade in after this? You really think that they will say Elon Musk took millions from us over night by doing what the entire car industry has never done over night to a cars value... Dealers will either not touch teslas again or they will lowball them so low that youd only get 20k for your new car. Id bet that carmax, carvana, and vroom took the biggest hits. The other low budget dealers could be put out of bussiness from this and the mid grade dealers wont touch teslas as a trade in.

As it is now all dealers are lowballing all teslas right now, its already started. Its only a matter of time before they stop accepting them as trade ins.

 

[losvedir]

The market, uh, finds a way. You're right resale values will probably incorporate a risk premium, but they certainly won't fall to zero.

I got a new Model 3 in December so I'm a little bummed, but still happy with the car. I'd still consider Tesla for my next one (especially now that prices are more reasonable!).

I think this analysis misses that due to accelerating production the cumulative used market is not that important relative to new sales. Tesla has so far sold 3 million cars total. It expects to sell that many more in less than two years.

 

[Black306]

This thread is not about me getting burned its about the future of tesla.

BS. You got burned, so tell us how. There is a lot of emotion in your post. Sure there are dealers that will take a major financial hit, but if there is money to be made, dealers will try and make it. I'll say it again, thinking a $50k car will go to $0 is unrealistic; there is still a market for Teslas.

 

[bjhinkle]

Tesla will buy your car via trade in. Including Teslas. There’s no scenario where 50k is now 0. Maybe a big burn on instant depreciation, but not a total loss for those buying for the purpose of just selling it.

The people I feel the most sympathy for are those that bought in the first 2 weeks. Tesla should have done the price cut on Jan 1, or continued the holiday discount til the price cuts.

 

[Apprunner]

This thread is not about me getting burned its about the future of tesla. Do you really think car manufactures will take teslas as a trade in after this? You really think that they will say Elon Musk took millions from us over night by doing what the entire car industry has never done over night to a cars value... Dealers will either not touch teslas again or they will lowball them so low that youd only get 20k for your new car. Id bet that carmax, carvana, and vroom took the biggest hits. The other low budget dealers could be put out of bussiness from this and the mid grade dealers wont touch teslas as a trade in.

As it is now all dealers are lowballing all teslas right now, its already started. Its only a matter of time before they stop accepting them as trade ins.

It depends on how long you keep your car. The issue is different for people that want to trade in their car in 1 or 2 years but makes much less difference for those that keep their car for 5-7 years. The average ownership period is about 5 years so dealers will be willing to accept trade-ins on those as those prices are probably much more stable and much lower.

 

[buster84]

Tesla will buy your car via trade in. Including Teslas. There’s no scenario where 50k is now 0. Maybe a big burn on instant depreciation, but not a total loss for those buying for the purpose of just selling it.

The people I feel the most sympathy for are those that bought in the first 2 weeks. Tesla should have done the price cut on Jan 1, or continued the holiday discount til the price cuts.

Tesla was always the biggest low baller for there trade ins. When it was selling for more used than new at all the other dealers tesla still offered 10k under the new price. They will never give anyone a reasonable price because thats how greedy they are and always will be when it comes to used cars. Sure your 50k might not be $0, but its more than likely going to be 30k with 500 miles and 20k with 10k miles.

Im not sure why people think that dealers will just accept these huge losses and move on. They will take the loss and avoid future losses by not buying used teslas. I actually had two quotes on my car from carvana and carmax for 33k ish. I redid the quotes to see if anything has changed and carvana shows that its stumped. and carmax is requiring me to bring the car in for a person to value it now. This means that the offers i got yesterday dropped to newer lows today and they dont want you to see it online and hope that you'd accept a bad offer in person. The damage is just starting to roll out, all new buyers will take just as big of a hit as old buyers.

 

[SteveM3Perf]

Even if Tesla don’t sell another car - they still will make more than $2 billion per year from their Supercharger network!
This will grow even more as they allow other manufacturers cars to use their charger.
What other car company sells you the car plus the “fuel” to power it!
Tesla is the car maker and oil company all in one - frankly genius!

 

[buster84]

Even if Tesla don’t sell another car - they still will make more than $2 billion per year from their Supercharger network!
This will grow even more as they allow other manufacturers cars to use their charger.
What other car company sells you the car plus the “fuel” to power it!
Tesla is the car maker and oil company all in one - frankly genius!

The stock market sure doesnt think so. Even after his price change the market didnt react with a rally. The little blimp rise that we saw was from shorts covering because they had no idea how the stock would react.. By next week once the shorts feel comfortable again they will pile back on and tesla will go down yet again.

 

[SteveM3Perf]

The stock market sure doesnt think so. Even after his price change the market didnt react with a rally. The little blimp rise that we saw was from shorts covering because they had no idea how the stock would react.. By next week once the shorts feel comfortable again they will pile back on and tesla will go down yet again.

Sadly - the majority of Tesla stock owners are simply there to quickly buy & sell to make a quick buck - rather than to long term invest in an innovative & disruptive technology company.
Tesla stock has replaced cryptocurrencies as a way for people to try and get rich quick!

 

[losvedir]

Also, it's worth considering how this applies to the Bolt EUV. In order to bring back consumer confidence after the battery recall disaster, GM dropped prices $6500, which is a roughly equivalent drop in percentage terms.

I don't lurk on Bolt forums so I don't know if there was similar wailing and gnashing of teeth. I would assume not, since the used market for Bolts wasn't so ridiculous beforehand, but who knows.

What I do know is that as a non-Bolt owner they became a screaming good deal and we strongly considered buying one. From our perspective, the price drop was nothing but good news. We settled on a Tesla but recommended the EUV to my sister, who did buy one and has nothing but good things to say about it.

This goes back to my original point about not overweighting the few burned folks (myself included!) when thinking about the effect of this price drop. It's nothing but good news for new customers and they *probably* won't be thinking about their immediate resale value. They'll just be happy with getting a good car for a great value.

 

[buster84]

Also, it's worth considering how this applies to the Bolt EUV. In order to bring back consumer confidence after the battery recall disaster, GM dropped prices $6500, which is a roughly equivalent drop in percentage terms.

I don't lurk on Bolt forums so I don't know if there was similar wailing and gnashing of teeth. I would assume not, since the used market for Bolts wasn't so ridiculous beforehand, but who knows.

What I do know is that as a non-Bolt owner they became a screaming good deal and we strongly considered buying one. From our perspective, the price drop was nothing but good news. We settled on a Tesla but recommended the EUV to my sister, who did buy one and has nothing but good things to say about it.

Bolts burned down peoples houses and risked death.... HUGE difference as to why they were forced to drop prices. I bet there selling under the cost to make it.

As for

This goes back to my original point about not overweighting the few burned folks (myself included!)

A few burned folks.... You do realize they burned 100% of their customers prior to the price reduction. Every car ever made by tesla took a huge dip in value. Every car, every model year made and thats why dealers are screwed the most. They will rebel against taking these as cars as trade ins espeically this year. No way they would risk being burned twice in the same year.

 

[ItsNotAboutTheMoney]

Used market prices went stupidly high, so instead of letting others take the profit, Tesla took it and fattened its margins. (No matter that Musk talked about supplier price pressure, the real reason for the price increases was glaring.)

Supply v demand has tipped back to supply, used prices had already fallen from the highs, and the Model Y didn't get the SUV MSRP in the IRA, because it's not an SUV so shock-horror the prices been cut.

Besides, in a more general sense, EVs are currently expensive and prices were forecast to fall significantly during this decade, in an expanding an increasingly competitive market, so expecting that EV prices wouldn't fall back to near or below pre-disruption levels is quite naive.

 

[richrootes]

I don’t care. I’ve bought plenty of things over the years that have become way cheaper some time after I made my purchase

Just after I got my Model S, all sorts of new and possibly better features were announced, but I was (and still am) so happy with the car and the way it performs, it didn’t bother me

Tesla’s move here could actually be quite smart. If dealers won’t take trade ins any more, the only way to sell is privately or back to Tesla. Your trade in then gets stripped of software features you paid for, and then possibly purchased again by the next owner

The price reductions could also be due to the world getting back to normal - sometimes reducing the price of an item makes it fly off the shelves or allows a whole new strata of people to buy it

As for dealerships getting burned or going out of business - who really cares? They’ve done enough damage over the years with their sharp practises

 

[Tiger]

In capitalistic economy, supply and demand will determine whether someone will buy your car, not the experience of being burned. There will simply be new carsellers if the old ones are skimping. All money originates from arbitrage, there is no escape.