Why are there so many new Plaid inventory cars showing up lately?

[danp]

I've been tracking new inventory cars as they show up, and noticing batches of Plaids almost daily, in various locations across the US. None of them are demos, as supposedly the stores aren't allowed to offer test drives until sometime in Q1. According to the SAs I've talked to, they are all cars that people couldn't or didn't accept deliveries on, but it's hard to imagine that given the volume.

Could be that Tesla is making too many to keep up with actual demand, or that demand for Plaid shrank unexpectedly. Anyone have any more hypotheses or insights?

 

[2101Guy]

Most likely a combination of factors. Some people placed orders for multiple cars in different configurations hoping that one would arrive faster. They then cancelled the other. Another factor are people sometimes reject a car for various reasons, including large defects, small defects, or couldnt get the financing they thought they could get. Some people rejected because they got tired of waiting for months, and went with another vehicle. Some people are out of the country this time of year and couldnt take delivery if they wanted to.

Reason why its disproportionate towards Plaids is that far more Plaids have been built than LR's.

 

[danp]

Most likely a combination of factors. Some people placed orders for multiple cars in different configurations hoping that one would arrive faster. They then cancelled the other. Another factor are people sometimes reject a car for various reasons, including large defects, small defects, or couldnt get the financing they thought they could get. Some people rejected because they got tired of waiting for months, and went with another vehicle. Some people are out of the country this time of year and couldnt take delivery if they wanted to.

Reason why its disproportionate towards Plaids is that far more Plaids have been built than LR's.

That all makes sense.

I have an LR on order with June delivery, and hoping to actually start seeing some LRs show up in inventory so I could get it sooner. Otherwise I might be too tempted to push the order button on one of the Plaids.

 

[ucmndd]

Seems like Plaid availability has been more or less immediate for a while now. We’re also at the point in the quarter where they just start throwing out inventory anywhere they can to get deliveries before the end of the month.

 

[jebinc]

Plaid build quality and owner issues posted on various social media platforms may also be contributing to the slow down in demand - while production is still going ball-to-the-walls (as in dodge balls).

 

[SoCal Buzz]

I've been tracking new inventory cars as they show up, and noticing batches of Plaids almost daily, in various locations across the US. None of them are demos, as supposedly the stores aren't allowed to offer test drives until sometime in Q1. According to the SAs I've talked to, they are all cars that people couldn't or didn't accept deliveries on, but it's hard to imagine that given the volume.

Could be that Tesla is making too many to keep up with actual demand, or that demand for Plaid shrank unexpectedly. Anyone have any more hypotheses or insights?

Remember that huge parking lot of dusty cars sitting for months in the drone footage??

 

[David29]

Plaid build quality and owner issues posted on various social media platforms may also be contributing to the slow down in demand - while production is still going ball-to-the-walls (as in dodge balls).

That point speaks to a thought I had upon reading this post. If there is a quantity of Plaids on hand, and none in the showrooms or available at the stores to test drive, the only reason I can think of is that having one for people to look at or drive would not increase sales! In other words, the ones now available might turn off the prospective buyers. Maybe because of defects, or maybe the showroom shopper is not expected to be too keen on the yoke and the new stalk-less interfaces, or Tesla thinks they might be turned off by some other design aspect or feature. The people ordering without seeing a car are probably the enthusiasts, the early adopters, the folks who need no convincing. Just a thought....

 

[jebinc]

Remember that huge parking lot of dusty cars sitting for months in the drone footage??

But the VIN are much newer than what would have come from that Fremont "Bastard's" lot.... Many are NF 2022 VINs....

 

[ucmndd]

Plaid build quality and owner issues posted on various social media platforms may also be contributing to the slow down in demand - while production is still going ball-to-the-walls (as in dodge balls).

I think that’s silly. How long are these batches of inventory cars sitting for? Sure doesn’t seem to be that long. They’re actively raising prices and choosing to manufacture Plaids instead of clearing the year+ backlog on LRs.

You don’t do that with cars that aren’t selling.

 

[jebinc]

I think that’s silly. How long are these batches of inventory cars sitting for? Sure doesn’t seem to be that long. They’re actively raising prices and choosing to manufacture Plaids instead of clearing the year+ backlog on LRs.

You don’t do that with cars that aren’t selling.

Time will tell, I suppose. Will be interesting to see if there are 2021s and 2022s still available in quantity after the New Year. Also, if there are any special incentives offered for the 2021s, like free SuC for a year, or something like that. Not sure it's "that" silly....

 

[danp]

Time will tell, I suppose. Will be interesting to see if there are 2021s and 2022s still available in quantity after the New Year. Also, if there are any special incentives offered for the 2021s, like free SuC for a year, or something like that. Not sure it's "that" silly....

Yeah, it's telling that they are not pulling any of the typical demand levers like supercharging, premium connectivity, or referrals. My guess is that it's a combo of more delivery conflicts due to holidays (and that strict 3 day delivery window), maybe along with some intentional over supply of the Plaids because they do end up selling and presumably have the highest margins.

 

[WilliamG]

Yeah, it's telling that they are not pulling any of the typical demand levers like supercharging, premium connectivity, or referrals. My guess is that it's a combo of more delivery conflicts due to holidays (and that strict 3 day delivery window), maybe along with some intentional over supply of the Plaids because they do end up selling and presumably have the highest margins.

There's also (at least to some degree!) the fact that this is not a cheap car...

 

[Snerruc]

Looks like there are 20 or so available in Florida. That seems like a lot, and they’re 2021s on 19 inch wheels.

 

[CapeOne]

There's also (at least to some degree!) the fact that this is not a cheap car...

The Plaid isn't a cheap car but nor was the P100D five years ago. It carried a base price of $134,500 ($127,000 after tax credit) or about $154,900 ($146,300 after tax credit) inflation adjusted. The new Plaid has a base price of $129,990 even before any potential/upcoming tax credits.

It is also interesting to note that while Tesla has increased the base price of the MS LR by 19% over the past five or so months, the Plaid base price hasn't been increased at all.

 

[AMPd]

The Plaid isn't a cheap car but nor was the P100D five years ago. It carried a base price of $134,500 ($127,000 after tax credit) or about $154,900 ($146,300 after tax credit) inflation adjusted. The new Plaid has a base price of $129,990 even before any potential/upcoming tax credits.

It is also interesting to note that while Tesla has increased the base price of the MS LR by 19% over the past five or so months, the Plaid base price hasn't been increased at all.

I believe you’re wrong, the plaids original base price was 119k.

 

[MorrisonHiker]

The Plaid isn't a cheap car but nor was the P100D five years ago. It carried a base price of $134,500 ($127,000 after tax credit) or about $154,900 ($146,300 after tax credit) inflation adjusted. The new Plaid has a base price of $129,990 even before any potential/upcoming tax credits.

It is also interesting to note that while Tesla has increased the base price of the MS LR by 19% over the past five or so months, the Plaid base price hasn't been increased at all.

I believe you’re wrong, the plaids original base price was 119k.

Tesla increases Model S Plaid price by $10,000 just ahead of first deliveries

Tesla has increased the price of its brand new Model S Plaid by $10,000 just a day ahead of its...

electrek.co

 

[CapeOne]

I believe you’re wrong, the plaids original base price was 119k.

I said over the past five months or so.

Yes, when Tesla originally announced the refresh MS there was to be a Plaid ($119,990) and a Plaid+ ($149,990) but it didn't work out that way. In June, they consolidated the line (cancelled the Plaid+) and the official base price of the Plaid became $129,990 which is the same price it is today. Meanwhile, the price of the MS LR increased 19% from $79,990 to $94,990.

 

[AMPd]

I said over the past five months or so.

Yes, when Tesla originally announced the refresh MS there was to be a Plaid ($119,990) and a Plaid+ ($149,990) but it didn't work out that way. In June, they consolidated the line (cancelled the Plaid+) and the official base price of the Plaid became $129,990 which is the same price it is today. Meanwhile, the price of the MS LR increased 19% from $79,990 to $94,990.

You said the base price of the plaid hasn’t been increased at all, but ok.

 

[strider]

I think it's a combination of things. I believe people are waiting to see if BBB is passed which would give them access to tax credits. Also, Tesla seems to be having problems building MX (most likely supply chain problems for things that are unique to MS). So to keep the line running they are building MS and putting them into inventory.

 

[CapeOne]

You said the base price of the plaid hasn’t been increased at all, but ok.

Ok. My entire sentence was meant to refer to that "past five months or so" period.

Anyway, between cancelling the $149,990 MS Plaid+ in early June and keeping the MS Plaid base price at $129,990 over the past five or so months while increasing the MS LR 19% during that time, it just made me wonder if there was also a lack of expected demand factor here when it came to the Plaid.

Are more people simply starting to balk at higher priced Teslas? Has the performance of even a base MS reached a level adequate for most buyers and thereby makes Plaid level cars less necessary/desirable?