We should be expecting used Tesla model S and X prices to go down

[MinDee246]

Tesla reduces prices on Models S and X amid stock slump
Check this out Tesla fam!
New MS and MX are reduced $3k in price effectively today. (which is ~4%)
So prolly the price of used cars will go down ~10%

 

[tix]

Why?

 

[Iceh8r]

When the stock takes a beating like this and Elon writes an internal email saying they only have 10 months of money left there’s no telling what they may do. I’m hoping for more cpos soon can buy another model s but they may be holding them back to push us into new model 3s.
Hopefully at the end of this quarter I’m july they will bring back more Cars at good prices.

 

[Brando]

Good time to check Tesla web site.

- upgraded Model S/X (code named "Raven" upgrade motors & range ?)
- even used ones are getting lifetime FREE Supercharging
- previous owners still get Ludacris upgrade on Performance Versions FREE, right??
- FSD down to $6,000 (AP is included now days)
- prices on new one down couple of thousand dollars
- end of quarter deals might be part of the reason why??

Time for a serious look?

 

[deonb]

When the stock takes a beating like this and Elon writes an internal email saying they only have 10 months of money left.

He wrote no such memo.

 

[Uncle Paul]

This price decrease will most likely NOT lower resale value. Simply is adjusting pricing to compensate for the $1,750 reduction in the tax credit coming end of June.

More likely reason for older cars demanding less money will be the improvement in range and the inproved adjustable suspension. Free Supercharging for life is a huge demand level. People really like that (even if they do not use it a lot). Something fantastic about pulling up to a Supercharger on a long trip and getting a FREE charge.

All these enhancements and lower pricing is going to give all those competitors the fits.

 

[MinDee246]

Check out Tesla website dude! Free supercharging is back lol!
We will see huge price drop in value of used car (at least by 7-10%)

 

[Brando]

Free Supercharging seems ONLY for Inventory new & used - not for Custom Orders

oh man, you can't assume anything ... careful reading - and I guess verify.

 

[Iceh8r]

He wrote no such memo.

This most recent dive may be caused by investor concern about Tesla's debt levels (the company had $10.3 billion in debt at the end of March and sold $1.6 billion in convertible bonds this month) and a leaked, internal email in which CEO Elon Musk said a capital infusion of over $2 billion would last for only 10 months at recent spending rates, said the Morningstar automotive analyst David Whiston.


Tesla keeps getting hammered and if the beating doesn't stop, it may need another tech giant like Apple to save it, experts say

 

[clyjr]

These aren't collector cars, you should always expect the value of used cars to go down...

 

[GMan324]

He didn't say they only have 10 months of cash left, this is the false narrative the media is putting forward that is driving down the stock. He said the capital raise would be used up in 10 months if they kept burning money at the rate the did during the 1st quarter. What you are missing is that they have the same amount of money in cash as they got during the capital raise and they aren't burning through money at that high rate anymore. We often see emails like this from him to motivate the employees to work hard, innovate, and be ultra efficient.

 

[deonb]

This most recent dive may be caused by investor concern about Tesla's debt levels (the company had $10.3 billion in debt at the end of March and sold $1.6 billion in convertible bonds this month) and a leaked, internal email in which CEO Elon Musk said a capital infusion of over $2 billion would last for only 10 months at recent spending rates, said the Morningstar automotive analyst David Whiston.

Tesla keeps getting hammered and if the beating doesn't stop, it may need another tech giant like Apple to save it, experts say

1) You should not ever refer to Business Insider for anything. The only function of that site is to take stuff out of context to shorten it and slap ads on it - they do no actual research or even writing.

2) Here is the full memo:
Read the email Elon Musk sent to Tesla employees calling for 'hardcore' control of expenses

He was referring to the fact that they'll burn through $2b.4 at Q1 rate ($233m/month) if they don't cost cut. However, they don't just have that $2.4b - they had $2b in the bank so now they have $4.4b. So in the most generous cases you can say they have "18 months" left.

But that's still not what he said either. His point was to cut costs... actually, just go read his original memo. Trying to extrapolate things is what causes problems in the first place.

 

[Sunshine State]

I spoke with an owner advisor today and the Free Supercharging offer on inventory cars only applies to the original owner.

 

[MinDee246]

bump

 

[Iceh8r]

I’m guessing as soon as this quarter ends and they deliver as many model 3 as they can there will be a nice trickle of used cars into the cpo program and we will be able to hunt some decent game starting in July. 70 cars should turn to 1000 used model s by July 10. Anyone agree?

 

[MinDee246]

I’m guessing as soon as this quarter ends and they deliver as many model 3 as they can there will be a nice trickle of used cars into the cpo program and we will be able to hunt some decent game starting in July. 70 cars should turn to 1000 used model s by July 10. Anyone agree?

cant agree more w you brother. Still on the hunt after that "couple seconds" lost , which really hurts me.
However, i decide to drop more- around 42-44k to get a facelift 2016 S85 or S90 AP doesnt matter

 

[ksquaredman]

70 cars should turn to 1000 used model s by July 10.

Has there ever been a time when there were 1000 used cars for sale in the U.S.?

Also, everything being exactly equal, should I expect to pay about $3000 more buying through Tesla because of the warranty they have as opposed to a private party sale?

 

[erik_k]

everything being exactly equal, should I expect to pay about $3000 more buying through Tesla because of the warranty they have as opposed to a private party sale?

With Tesla adjusting prices on new cars so much this year there’s still a lot of volatility.
There’s no way to say whether you’ll pay more buying through Tesla Used vs private party. Tesla Used is somewhat methodical about regular price reductions until a particular car sells. There are many cases where private party sellers are asking way too much for a particular car when there are better deals with Tesla Used

 

[Iceh8r]

A few months ago it was 1200 (January)and I believe around 400 when I purchased 2 months ago. They def have the cars. Maybe using them as loaners? I doubt they are savvy enough to turn them into taxis or volume sell them out of the country or some other creative idea. Much easier to just sit on them and then slowly start letting them out.

FYI, people on this forum value the Tesla cpo warranty at 2-3k.
Two months ago when I bought my 2014 s60 with autopilot for 31500$ (which was an awesome price) the same cars without the cpo Tesla warranty were going for 36k or more at dealers. So the cpo prices would just kill anyone else. And on top they gave me $3000 more for an old truck then it was worth. Now the dealer prices are about the same, but not much available from Tesla. I liked everything about the car/experience/service so much I’d love to buy another cpo.

Has there ever been a time when there were 1000 used cars for sale in the U.S.?

Also, everything being exactly equal, should I expect to pay about $3000 more buying through Tesla because of the warranty they have as opposed to a private party sale?

 

[JPUConn]

I spoke with an owner advisor today and the Free Supercharging offer on inventory cars only applies to the original owner.

Correct. Also it only apples to S and X inventory that has the “old” drive train and suspension. If you want a car with the longer range (model 3 front motor) and active suspension the best you’ll get us referral miles