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What will happen to current owners once Tesla drops the price of new Y's?

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I went to the shop the other day. Normally the Pringles I buy are £1.60 and on offer for £1. Today they are £2 and on offer for £1.65. What happens when the prices goes back down to £1 on offer. Should I call up the shop and request my 65p back?

Silly to even suggest it. The price is the price based on the current materials cost and demand/supply.
 
"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.
Well, they were paraphrasing Elon from the Q1 CC
So, our prices of vehicles ordered now are really anticipating supplier and logistics cost growth that we’re aware of and believe will happen over the next 6 to 12 months. So, that’s why we have the price increases today because the car ordered today will arrive, in some cases, a year from now.
 
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I went to the shop the other day. Normally the Pringles I buy are £1.60 and on offer for £1. Today they are £2 and on offer for £1.65. What happens when the prices goes back down to £1 on offer. Should I call up the shop and request my 65p back?

Silly to even suggest it. The price is the price based on the current materials cost and demand/supply.
Lol. I paid $15 for hand sanitizer a year ago. Wow did I get hosed. Pringles and Hot Fries are good at Any price!
 
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.
The thing that could decrease prices across the board is central banks around the world aggressively hiking interest rates to reduce demand and bring it more in line with reduced supply, and this has an outsized impact on large financed purchases like houses and vehicles. While we're in this period of shifting monetary policy, basically the entire auto industry is pumping billions into new factories and increased production that could start rolling out at the least opportune moment in the last 40 years or so.

Existing rules about price increases over time can be thrown out the window right now, probably few if any of us here have existed as adults in a period like this. As well, we know that markets tend to overcorrect in both directions and we're coming out of what might have been the craziest period ever for vehicles -- people were actually flipping used vehicles and even factory orders for profits. Three years ago, just driving a car off a lot meant a huge depreciation hit.

Logic suggests that after such a crazy run up, we should see a correspondingly-crazy decline. I guess time will tell, but my money would be on central banks aggressively hiking until their goal is achieved. If prices don't come down because demand hasn't come down enough, they'll hike again. And they'll hike until something breaks, then they'll start easing off a bit.

IMHO anyone waiting for a price decrease on Teslas is living in a fantasy world. Used car prices will likely come down somewhat. This is not real estate. With waiting lists approaching a year for new Teslas, prices will not soften until Tesla has excess inventory over demand.
I see people getting MYPs and M3Ps in 2-3 months in delivery threads here, they're almost the same price as the LR versions now.

And I think high trade-in values are propping up deliveries, the number of used Model Ys listed on Tesla's site is high and the number of Model 3s listed is obscene


People are dumping their 0-3 year old previous models into the used market for new factory orders and paying whatever small difference there was between the trade-in value and the new price.

I bet Tesla is listing all the used models with FSD so they can incentivize new factory orders among people who don't want to pay for FSD, and then they'll start removing FSD to make it seem like prices have come down $12k.
 
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The thing that could decrease prices across the board is central banks around the world aggressively hiking interest rates to reduce demand and bring it more in line with reduced supply, and this has an outsized impact on large financed purchases like houses and vehicles. ....
I guess we will find out. However, I think as long as the payment does not rise 200+/mo most people that use loans will buy. I am old enough to remember 10+% loans on cars and 14% on homes. People still bought both then. And you could make 10-11% on loan repurchase agreements from banks.
 
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The Model Y won't stay at this price forever. What would happen to the owners whom bought at 65k+ if Tesla decreases the price of the car back down into the 50k range? Those owners would lose a lot of money if they totaled their vehicle and their insurance only gives them a check for 45k while they still owe 60k in the vehicle. Doesn't seem like a good time to buy any car right now as the bubble has to pop at some point.
Well, no one’s forcing you to buy a car right now, are they? Feel free to wait for that price drop.
 
Well, no one’s forcing you to buy a car right now, are they? Feel free to wait for that price drop.


At the rate Tesla is building cars, everyone will be owning one in the future. If people stop buying, what happens to the excess capacity? Serious question. We have people screaming to get more cars out of the factory doors.... but there will be a point of market saturation for a certain car segment. Tesla wants to electrify the world, but there are only so many people in the world that can afford +$60k cars. Stock holders want to flood the market because they want TSLA to be worth its valuation. What TSLA is worth right now reflects the future value. In the future people think Tesla will be the #1 automaker. But that can't happen until lower cost cars come about.

Since tesla cars have high profit margins -- the most of any car manufactures, will Tesla simply lower the price of existing cars when they have taken over the high end car market to sell to the lower end market (which they can because of the high profit margins), or will they make a "cheaper" car which will cost tesla more money to design and build because new machines will have to be bought or reconfigured. In other words, would a "cheaper car" be really more "cheaper to build"? Every car needs a certain amount of metal... certain amount of batteries, etc.. After a while, building and designing a "cheaper" car wouldn't be worth it because the cost to make the "cheaper" car would be about the same cost to make a model 3 or Y.

Just my 2 cents. Basically, I feel Tesla will have to lower their prices. There just isn't enough people that are willing to fork over $60k for a car and the stock market demands Tesla make the most cars of any other car companies. TSLA valuations are high as compared to other car makers. Tesla cannot be a niche car manufacturer like Mercedes or BMW.
 
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At the rate Tesla is building cars, everyone will be owning one in the future. If people stop buying, what happens to the excess capacity? Serious question. We have people screaming to get more cars out of the factory doors.... but there will be a point of market saturation for a certain car segment. Tesla wants to electrify the world, but there are only so many people in the world that can afford +$60k cars. Stock holders want to flood the market because they want TSLA to be worth its valuation. What TSLA is worth right now reflects the future value. In the future people think Tesla will be the #1 automaker. But that can't happen until lower cost cars come about.

Since tesla cars have high profit margins -- the most of any car manufactures, will Tesla simply lower the price of existing cars when they have taken over the high end car market to sell to the lower end market (which they can because of the high profit margins), or will they make a "cheaper" car which will cost tesla more money to design and build because new machines will have to be bought or reconfigured. In other words, would a "cheaper car" be really more "cheaper to build"? Every car needs a certain amount of metal... certain amount of batteries, etc.. After a while, building and designing a "cheaper" car wouldn't be worth it because the cost to make the "cheaper" car would be about the same cost to make a model 3 or Y.

Just my 2 cents. Basically, I feel Tesla will have to lower their prices. There just isn't enough people that are willing to fork over $60k for a car and the stock market demands Tesla make the most cars of any other car companies. TSLA valuations are high as compared to other car makers. Tesla cannot be a niche car manufacturer like Mercedes or BMW.
Concern trolling for the win!
 
My concern is the opposite.

My insurance renewal is coming up and my policy pays the lowest of the price I paid and the replacement cost.

I paid CAD$65k for my Y SR with hitch and taxes. The same vehicle in Canada today is $81-86k plus tax.

Since this never happens, my broker has gone looking for the answer. I know that of coverage for this does exist it will cost me a bit more, but I'd rather pay than not have a Model Y if it does get totalled. I wouldn't be able to make up the $25k (with tax) gap.

The payout would cover my entire loan with some cash left over, but the gap between another Y, even SR, would be too big to make up.

A price drop would help in this case.
 
I admire the relentless optimism, but jumping on this proposed EV tax credit is premature and wouldn't mean price cuts aren't coming even if it went through in its current form with no changes (spoiler: it won't)

Benefits of these tax credits and the other items rolled into the bill would be skewed largely in the favor of the competition. GM needs more credits, Toyota needs more credits, and the legacy OEMs would be getting funds to support retooling their current facilities to produce EVs and that would give them more flexibility in pricing aggressively.

There will be price and income limits on these credits, and I have a feeling they would end up being more conservative than the numbers currently touted ($80k limit for SUVs, $55k limit for cars, $150k individual income limit and $300k household).


Beyond that we need to wonder about dynamics around the consumer reaction and when these credits would come into effect. For example if the credits don't come into effect until the start of next year, people will be holding off on buying and could exacerbate effects of the interest rate hikes in the interim
 
And I think high trade-in values are propping up deliveries, the number of used Model Ys listed on Tesla's site is high and the number of Model 3s listed is obscene


People are dumping their 0-3 year old previous models into the used market for new factory orders and paying whatever small difference there was between the trade-in value and the new price.

I bet Tesla is listing all the used models with FSD so they can incentivize new factory orders among people who don't want to pay for FSD, and then they'll start removing FSD to make it seem like prices have come down $12k.


Wow... that's a lot of Used Tesla's. I can remember, IIRC, a year or two; they barely had any used Tesla's. It's going to be an interesting 6 months. High inflation, and now we are in an official recession. The housing market is all wacked up...

Tesla does not seem to have supply issues in getting parts to make new cars. I think their wait time for a model Y was 12 months a year ago.. that seems to be going down. Tesla seems to be a company that can efficiently turn out new cars.... but demand seems to be softening. Other car companies seem to still have supply issues like Honda and Toyota. Fun times.
 
Not a troll. You still haven't answered the question. How will tesla electrify the world if their cars are so expensive that only well to do people can afford them?

While Jesus was in Bethany in the home of Simon the Leper, a woman came to him with an alabaster jar of very expensive perfume, which she poured on his head as he was reclining at the table.
When the disciples saw this, they were indignant. “Why this waste?” they asked. “This perfume could have been sold at a high price and the money given to the poor.”
Aware of this, Jesus said to them, “Why are you bothering this woman? She has done a beautiful thing to me. The poor you will always have with you, but you will not always have me.” —Matthew 26:6-13

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While Jesus was in Bethany in the home of Simon the Leper, a woman came to him with an alabaster jar of very expensive perfume, which she poured on his head as he was reclining at the table.
When the disciples saw this, they were indignant. “Why this waste?” they asked. “This perfume could have been sold at a high price and the money given to the poor.”
Aware of this, Jesus said to them, “Why are you bothering this woman? She has done a beautiful thing to me. The poor you will always have with you, but you will not always have me.” —Matthew 26:6-13

View attachment 833790
Cool story.