Thinking about joining legal action on recent massive price cut

[NewTMSMan]

Interesting thread.... I am willing to bet no one, and I mean no one, was effected by the price drops more than me. I am not sure I am proud to make that claim, but compared to the sticker price price of the Teslas I own, there is a difference of $77k due to price changes if I were to buy my exact cars today as compared to when I bought them over the past 18 months. Those making the analogy to depreciation are not correct and do not understand depreciation and how that works. Those making a comparison to a drop in consumer electronics prices, particularly when newer models with more features are introduced are missing the point as well.

Essentially Tesla cost me $77k with their price reductions as the market value for the cars I own now will have their value based on the current market price of the exact same model. To be clear I have a Model S P100D - Original Sticker Price as configured - $165k, current price configured exactly the same $125k. Normally with every car I have owned they follow a general depreciation model (luxury / high end cars), 20% year 1, 12-15% Year 2 and 7%-10% each subsequent year. If I follow that model then my P100D should be worth about $122k after 18 months taking the higher of the depreciation model. Who would pay $122k when the exact same car new is $125k. This means I can actually expect my car to now be worth closer to $90k with the new pricing actually setting the starting point now. That means I have lost somewhere in the neighborhood of $30k+ in value due to price changes. The same analogy is true for my 100D X and my M3P.

Now am I going to sue Telsa? No, could not win and even if we could we would get almost nothing. I also am not sure what the basis of the lawsuit would be to be honest.

Am I unhappy that Tesla cost me a lot of money with capricious pricing decisions? Yes definitely I am not happy. Love the cars, but if it is going to cost me 45% depreciation over 18 months that may not be a price I am willing to pay in the future. Over $4k per month of depreciation cost for my P100D, I'll lease a McLaren 720s and put the $1k savings per month in my pocket.

 

[Uncle Paul]

I have been watching the pricing on used Tesla. Not sure I am seeing the massive reduction in pricing in the used marketplace than people are moaning about.

 

[Mjch]

With the recent major price reduction, I feel like I'm hit with the penalty for being a few months earlier adopter.

Not sure if I'd line up at the stores overnight or put reservation money.

I bet many of you, the loan balance is higher than how much you can buy the cars right now. Even with the tax credit refunds.

I can't even imagine how recent S or X owners feel right now.

You can easily disregard by saying 'that's how business works' but US is a country with lawsuits with a few MPG difference.

If there's no compensation gesture from Tesla, I'm willing to join a party with legal action. Do any of you know which firms are cooking up those ideas?

 

[Mjch]

Musk always thanked model s and x owners for making it possible to build cheaper version Teslas, shamelessly he slapped them all by reducing prices. My loan is much more than what my car worth brand new now, forget about my big down payment and few monthly payments.
To add fuel to the fire I paid almost $6000 for the ridiculous Auto pilot less than two months ago that now is selling for 3000,
The largest loss comes when we want to sell the car as this reduction will greatly reduce resale value,
I am ready to fight and already talk two attorneys looking for others to join and file a class action lawsuit,

 

[SunCharged]

Ryan, stop embarrassing yourself... your illiteracy is showing. Deprecation - Wikipedia

​

Believe me FlatSix911 I’m all too familiar with the arrogance of the German car crowd. I’ve owned 4 Porsches, a BMW, and a Merc. I see where you are coming from and I’m glad to be past that. Generally the EV crowd is a friendly bunch, except you.

Tell me, when you’re at a supercharger. Does your nose come down far enough for you to see others and consider engaging in pleasant conversation?

 

[focher]

I am ready to fight and already talk two attorneys looking for others to join and file a class action lawsuit,

If you truly spoke to two attorneys, perhaps you can share the basis for a lawsuit. Any lawyer would have stated the legal basis for damages, so why don’t you share it with us? Because there is a difference between “I’m upset that the new prices are less than what I paid or the resale value of my car” and actual legal liability.

By the way, with all the talk about loss of value due to the price reductions - Tesla was also affected with any current leases or CPO vehicles they are trying to sell.

 

[SunCharged]

Musk always thanked model s and x owners for making it possible to build cheaper version Teslas, shamelessly he slapped them all by reducing prices. My loan is much more than what my car worth brand new now, forget about my big down payment and few monthly payments.
To add fuel to the fire I paid almost $6000 for the ridiculous Auto pilot less than two months ago that now is selling for 3000,
The largest loss comes when we want to sell the car as this reduction will greatly reduce resale value,
I am ready to fight and already talk two attorneys looking for others to join and file a class action lawsuit,

I can understand the frustration. I’m just not sure this is something that one could sue for and win. At the very least, you as an unhappy customer, confirms that their business strategy (or lack of) is not going to keep consumers loyal for long.

 

[BoerumHill]

Musk always thanked model s and x owners for making it possible to build cheaper version Teslas, shamelessly he slapped them all by reducing prices. My loan is much more than what my car worth brand new now, forget about my big down payment and few monthly payments.
To add fuel to the fire I paid almost $6000 for the ridiculous Auto pilot less than two months ago that now is selling for 3000,
The largest loss comes when we want to sell the car as this reduction will greatly reduce resale value,
I am ready to fight and already talk two attorneys looking for others to join and file a class action lawsuit,

Congrats on your first post, GLWS

 

[BoerumHill]

Musk told the world what he was going to do 12-1/2 years ago.

They should def be sued for following through on it.

The nerve of these people, bringing an affordable EV to the masses.

 

[FlatSix911]

Believe me FlatSix911 I’m all too familiar with the arrogance of the German car crowd. I’ve owned 4 Porsches, a BMW, and a Merc. I see where you are coming from and I’m glad to be past that. Generally, the EV crowd is a friendly bunch, except you.

Tell me, when you’re at a supercharger. Does your nose come down far enough for you to see others and consider engaging in pleasant conversation?

Glad to see you change your tune... let me know when you attend a future PCA or Tesla event and we can chat anytime.

 

[mattjs33]

mod note: 8 posts moved to snippiness. Terms like "fanboy," "troll," and "imbecile" are personal attacks and not permitted here. I understand emotions are high on this topic, and opinions are strong. But please either address the topic constructively or move on from this thread. The latter is probably the healthier option..

I used to love reading "Snippiness", because it's hilarious.

Looked through it just now, I think maybe you've become a bit too heavy-handed.

Personal attacks are one thing but keep in mind sometimes there's truth to things you don't like.

Can't believe you're censoring "fanboy". Are we really that thin-skinned? Wouldn't many here freely admit to being one?

 

[ohmman]

Can't believe you're censoring "fanboy". Are we really that thin-skinned? Wouldn't many here freely admit to being one?

When it is used as an ad hominem attack to dismiss an argument, it’s counterproductive. Similarly, calling someone a troll is a personal attack that doesn’t address a post. It improves discourse if members address the post, or just ignore it completely if there’s no constructive response that doesn’t include name calling.

Note that most of the stuff in snippiness comes from other forums and other moderators. I only moderate Model 3, Tesla Energy (never a snippy comment), and now Model Y (though nothing has been moved out of that forum yet).

 

[Upscaleman]

Musk always thanked model s and x owners for making it possible to build cheaper version Teslas, shamelessly he slapped them all by reducing prices. My loan is much more than what my car worth brand new now, forget about my big down payment and few monthly payments.
To add fuel to the fire I paid almost $6000 for the ridiculous Auto pilot less than two months ago that now is selling for 3000,
The largest loss comes when we want to sell the car as this reduction will greatly reduce resale value,
I am ready to fight and already talk two attorneys looking for others to join and file a class action lawsuit,

Good luck with that. Not only will you lose but, if I were Tesla, I'd file a suit against you for abuse of process and malicious prosecution for bringing that joke of a junk case in the first place.

 

[Upscaleman]

"This will be the biggest case of false advertising since I sued the makers of 'The Neverending Story'."

- Lionel Hutz, Esq.

 

[Silver Rocket]

With the recent major price reduction, I feel like I'm hit with the penalty for being a few months earlier adopter.

Not sure if I'd line up at the stores overnight or put reservation money.

I bet many of you, the loan balance is higher than how much you can buy the cars right now. Even with the tax credit refunds.

I can't even imagine how recent S or X owners feel right now.

You can easily disregard by saying 'that's how business works' but US is a country with lawsuits with a few MPG difference.

If there's no compensation gesture from Tesla, I'm willing to join a party with legal action. Do any of you know which firms are cooking up those ideas?

How do the ICE car companied like Ford, etc. hable that? They don't!

 

[Culblu1]

With the recent major price reduction, I feel like I'm hit with the penalty for being a few months earlier adopter.

Not sure if I'd line up at the stores overnight or put reservation money.

I bet many of you, the loan balance is higher than how much you can buy the cars right now. Even with the tax credit refunds.

I can't even imagine how recent S or X owners feel right now.

You can easily disregard by saying 'that's how business works' but US is a country with lawsuits with a few MPG difference.

If there's no compensation gesture from Tesla, I'm willing to join a party with legal action. Do any of you know which firms are cooking up those ideas?

I hope your kidding. This is a ridiculous post! If you bought a tv, and it had a price cut 2 months later, would you sue? Or if you bought a can of corn at Albertsons, and it was on sale in the next flyer, would you sue then too? This post is disgusting! I hope an I.C.E. car gives anybody who would even THINK about joining this “legal” action, a. door ding that you see every time you walk up to your car.

 

[NRGrin]

Did your Audi go down in value because you bought a vehicle that has a well known terrible resale value? Or because Audi started selling options on the A8 they havent delivered to current customers yet at a discount to new customers?

Not all Audis have terrible resale. S4’s for example do very well in the used market. EVERYONE knows the big luxury sedans lose a ton of value, quickly.

No offense, but your understanding of this shows the intelligence of someone who would not only drop $100k on an A8, but also admit they lost that much money! LOL

No offense taken because I’m not that stupid. I bought the Audi A8 used with only 24K miles and saved $60,000!!

My comparison was in response to complaints from the previous poster that the Model S declined in value faster than BMW, MB and Audi.

I was just showing how quickly the A8 depreciated and what a great deal I got on it.

 

[Argoniii]

I guess we should all sue computer manufacturers as well. When you buy a 10,000 super Napster gaming computer it will be a 5k or less machine in 2 years. Or maybe Sony for the playstation or Xbox for the early buyers that had to get the useless camera and microphone.

Electronics and batteries always go down in price as manufacturing increases. In Teslas case they built factories to reduce costs and passed it on to their customers. Early adopters often pay more.

 

[Upscaleman]

He couldn't hear you from his safe space.

 

[happyzod]

Interesting thread.... I am willing to bet no one, and I mean no one, was effected by the price drops more than me. I am not sure I am proud to make that claim, but compared to the sticker price price of the Teslas I own, there is a difference of $77k due to price changes if I were to buy my exact cars today as compared to when I bought them over the past 18 months. Those making the analogy to depreciation are not correct and do not understand depreciation and how that works. Those making a comparison to a drop in consumer electronics prices, particularly when newer models with more features are introduced are missing the point as well.

Essentially Tesla cost me $77k with their price reductions as the market value for the cars I own now will have their value based on the current market price of the exact same model. To be clear I have a Model S P100D - Original Sticker Price as configured - $165k, current price configured exactly the same $125k. Normally with every car I have owned they follow a general depreciation model (luxury / high end cars), 20% year 1, 12-15% Year 2 and 7%-10% each subsequent year. If I follow that model then my P100D should be worth about $122k after 18 months taking the higher of the depreciation model. Who would pay $122k when the exact same car new is $125k. This means I can actually expect my car to now be worth closer to $90k with the new pricing actually setting the starting point now. That means I have lost somewhere in the neighborhood of $30k+ in value due to price changes. The same analogy is true for my 100D X and my M3P.

Now am I going to sue Telsa? No, could not win and even if we could we would get almost nothing. I also am not sure what the basis of the lawsuit would be to be honest.

Am I unhappy that Tesla cost me a lot of money with capricious pricing decisions? Yes definitely I am not happy. Love the cars, but if it is going to cost me 45% depreciation over 18 months that may not be a price I am willing to pay in the future. Over $4k per month of depreciation cost for my P100D, I'll lease a McLaren 720s and put the $1k savings per month in my pocket.

Tesla really screwed over their earliest (and richest) customers with all the recent price drops. I guess it's a lesson learned to everyone. Lease, don't buy!