Yep, I agree. Only exception is with Elon wanting to always shake things up, I could see if he got production costs, battery costs, and supply chain costs down, I could see him maybe lower prices or come out with an even more affordable variant.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
What will happen to current owners once Tesla drops the price of new Y's?
- Thread starter YNoVA
- Start date
jebinc
Well-Known Member
Prices will not be reduced. Instead, they will add value with features or functionality. Or announce a less expensive new model.
JimBob 909
Little Red Raven
In 2019 they dropped the price of the Model S drastically. That's when we bought and rec'd lifetime supercharging also. However, in this day & age I doubt that will happen again. Prices will stabilize as more competition enters the market. Not every buyer wants minimalist interior. I don't love our 2022 Model X because of no stalks and shifting and open glove compartment is on the computer screen. I had actually ordered a 2020 just before production stopped for the refresh.
The price increases now are trying to project what the costs will be when they fulfill current orders.
For me, once I drove an EV, I knew I could never go back to ICE cars. Fast and tons of power. Fun to drive, no waiting for a shift to restore acceleration.
And regarding the charging network, if you can charge at home, you have a dedicated gas pump. Also, Tesla is expanding their network rapidly. And it looks like Tesla now wants to support other EV brands and that should let them expand even faster and replace the old-line gas companies like Shell, Mobile, etc.
popgodazipa
Member
On most things I would agree but the model S saw a steady price drop in the latter years before the refresh. I saw an article where Musk said prices now are embarrassing for Tesla.
We shall see
I owned a Tesla M3AWD and loved it - sold it for a profit last summer(wish I hadn’t). That said I could never drive that car on road trips to rural places because of the unavailability of Tesla L3 chargers. I would like to replace my wife’s Ford Edge with the MYLR I have on order but I don’t think the MY can make the trip from where we live is SC Kansas to family in Central South Dakota, especially during winter…lack of sufficient range and charging stations. When driving locally the Tesla will be great…but road travel in rural areas is pretty sketchy…. I can’t even drive from Wichita to Santa Fe NM or Pueblo, CO in one day...no level 3charging in between here and there. It will come in time…but $60,000 is a lot to spend on transportation that is limited. I love the way power is delivered in EVs, but a 200 mile realistic highway driving range in rural areas is very limiting. At this point I’m having second thoughts about the MY purchase. Maybe Elon will come up with a buy up option for a 400 mile range MY….
What's with all the gap insurance salesmen here? Never heard so much talk of this before. If I'm upside down on a loan and change vehicles gap insurance is no help.
Only scenario it might help is being upside down in equity and having the vehicle totalled. All other scenarios I lose the cost of the premiums. Tesla's often hold value very well. Scenario where gap insurance helps just seems super rare. Why do I need to gamble that gap insurance might help? I'm gonna finance all I can with a car as I'd rather invest that cash. But I have enough to pay if some rare event happens and I'm way upside down needing to pay off a totaled car or buy something else.
Only scenario it might help is being upside down in equity and having the vehicle totalled. All other scenarios I lose the cost of the premiums. Tesla's often hold value very well. Scenario where gap insurance helps just seems super rare. Why do I need to gamble that gap insurance might help? I'm gonna finance all I can with a car as I'd rather invest that cash. But I have enough to pay if some rare event happens and I'm way upside down needing to pay off a totaled car or buy something else.
What's with posters saying inflation is going to cool off (sure it might).... and that will lead to lower prices???
That's not how inflation works. If inflation drops to 0% it doesn't mean Tesla prices go down. It means they stay the same.
2019 Tesla prices are gone, same as a nickel loaf of bread and a quarter for a gallon of gas.
Yeah I'd expect inflation goes way down because 9% is insanely historically high.
But that doesn't mean we will see rapid Tesla price deflation....
That's not how inflation works. If inflation drops to 0% it doesn't mean Tesla prices go down. It means they stay the same.
2019 Tesla prices are gone, same as a nickel loaf of bread and a quarter for a gallon of gas.
Yeah I'd expect inflation goes way down because 9% is insanely historically high.
But that doesn't mean we will see rapid Tesla price deflation....
ucmndd
Well-Known Member
Well, yeah. That’s precisely the scenario gap insurance exists to cover.
Kind of like the only scenario where term life insurance might help is if you die.
phigment
Member
A couple months ago I asked a Tesla sales rep about pricing and inflation and they replied as follows:
That reply basically states that quoted price is present value inflation adjusted for delivery in the future... about 1 year.
Quote = present value * (1 + inflation)
If inflation is magically adjusted down, then the quoted value will drop.
I was skeptical of their reply, but maybe there is some truth to it. Look at the relative pricing of perf Y vs long range Y and the estimated delivery window. Perf Y has a fairly low premium on the long range version and a much closer delivery window. Perhaps that premium is smaller now because the delivery date is nearer, creating a lower inflation adjustment.
I guess a flaw with that argument is that you'd expect a price drop if a configuration change modifies estimated delivery date. I.e. the website gives the same base price for a MYLR with black or white interior, even though the page estimates 3 months earlier for the white interior car.
Last edited:
historically, you are correct but this is a different kind of inflation. Some of it is normal type of inflation and other parts of it is supply chain related which once production of chips etc in China gets back to normal, prices will go down as well. My nephew works in the autonomous driving industry and he was talking about boards costing 3x normal and a wait time of a year.
One thing that does come down in price when manufacturing gets ironed out is electronics (look at TVs now) so I suspect at some point elons part costs for some components will go way down. Not sure if he will lower the price at that point unless the demand significantly decreases. This could happen to a point with interest rates climbing. Who knows?
Basically trying to call wether prices go down is about as easy as trying to predict our stock market right now. There are just too many unpredictable factors.
Sounds like you are just ahead of the area's infrastructure.
With Ford, GM, and other pushing hard to become EV first vendors. And Tesla starting to charge 3rd party vehicles and displace Shell and Mobile, hopefully your infrastructure will be more like the West Coast has. By me there are 7 Supercharge locations in within 10 miles. And for long distance there are massive Superchargers being built/expanded on the interstates. Such as along I-5 the main route between San Francisco and Los Angeles. One of the many Superchargers along that route is Harris Ranch being expanded to 80 Superchargers. Hopefully this will become common place soon.
Last edited:
Correct. The rate of increase in prices is cooling off.
The thing that will decrease Tesla prices is competition. If Tesla sales start to drop they will offer limited time price decreases, free Supercharging, referral incentives, etc., and lower priced models.
"A tesla sales rep" would likely be one of the absolute last people I would ask about "pricing and inflation". They are only different from regular dealership salespeople in that they dont make direct commission from their sales like a BMW salesperson might. Other than that, they tend to say "whatever" just like every other car salesperson.
Yes, that's a great analogy.
I have a million dollar life insurance that costs about $22 a month.
How much financial distress for my family would having some negative equity in a car compare to my death?
How much is gap insurance cost and how much benefit could that provide?
The gap insurance product just sounds like a horrible investment, similar to buying an extended warranty on a couple hundred dollar purchase. Generally only the poor and financially unsound individuals buy such products.
Gap insurance is $40/yr through my auto insurance provider. I think it's worth paying for that peace of mind incase my car gets totaled.
Similar threads
