Will We See A CT Price Increase?

[coch]

With numerous signs pointing to mass inflation and prices rising across industrials, it seems likely we will see an increase in the price of the Cybertruck by delivery. Taking that into account, how 'locked-in' is the reservation price? Does Tesla reserve the right to increase prices?

(Although this topic was already being discussed, this is about base price, not FSD)

 

[gigawatt1010]

I have a reservation for a CT as well, and I don’t think Tesla is locked in. If they do increase it, I’m sure a good number of reservation holders will cancel.

PS - nice 356!

 

[coch]

Thanks!

After reviewing the order agreement, it actually is unclear. Although it says the price is subject to change, it suggests that such a price increase is only pursuant to changes in options/ configurations.

"As you may have only configured part of your Vehicle, any pre-order price provided to you in advance of the Final Price Sheet is only being offered to you as an estimate and is subject to change."

 

[DarkandStormy]

With numerous signs pointing to mass inflation and prices rising across industrials, it seems likely we will see an increase in the price of the Cybertruck by delivery. Taking that into account, how 'locked-in' is the reservation price? Does Tesla reserve the right to increase prices?

(Although this topic was already being discussed, this is about base price, not FSD)

Didn't Tesla shift around Model Y pricing after they initially unveiled all the variants? I suppose you could find some posts from several years back to see if initial reservation holders ended up being charged a different price.

Here's what I think is the relevant language from the reservation:

Pre-Order Price, Taxes and Official Fees. The pre-order price of the Vehicle will be confirmed in your Vehicle Configuration and Final Price
Sheet. As you may have only configured part of your Vehicle, any pre-order price provided to you in advance of the Final Price Sheet is only
being offered to you as an estimate and is subject to change. Any pre-order price listed in the Vehicle Configuration will not include taxes and
official or government fees, which could amount to up to 10% or more of the Vehicle pre-order price. Because these taxes and fees are
constantly changing and will depend on many factors, such as where you register the Vehicle, they will be calculated closer to the time of
delivery and indicated on your Final Price Sheet. You are responsible for paying these additional taxes and fees. If you present a check for any
payment, we may process the payment as a normal check transaction, or we may use information from your check to make a one-time
electronic fund transfer from your account, in which case your bank account will reflect this transaction as an Electronic Fund Transfer.

Pre-Order Process; Cancellation; Changes. After you submit your completed pre-order and the options you selected become available in
production, we will invite you to complete the configuration of your Vehicle. We will then issue you the Vehicle Configuration and Final Price Sheet
based on the base price of the model and any options included or that you select. Your Pre-Order Payment covers the cost of these activities
and other processing costs and is not a deposit for the Vehicle. Until your Vehicle is delivered to you, you may cancel your pre-order
at any time, in which case you will receive a full refund of your Pre-Order Payment. Until your final configuration is matched
to a vehicle, you may make changes to your Vehicle Configuration. If you make changes to the configuration of the Vehicle, you may
be subject to potential price increases for any pricing adjustments made since your original Pre-Order Date. Any changes made by you to your
Vehicle Configuration, including changes to the delivery location or estimated delivery date, will be reflected in a subsequent Vehicle
Configuration that will form part of this Agreement. When you take delivery of the Vehicle, we will provide a credit to the final pre-order price of
your Vehicle equivalent to the amount of the Pre-Order Payment you paid. This Pre-Order Payment and this Agreement are not made or
entered into in anticipation of or pending any conditional sale contract.

I underlined what I thought was most relevant. The pre-order price is only an estimate and is subject to change. So until you get a final price sheet from Tesla, they are reserving the right to change the amount owed, it sounds like.

 

[wbhokie]

Didn't Tesla shift around Model Y pricing after they initially unveiled all the variants? I suppose you could find some posts from several years back to see if initial reservation holders ended up being charged a different price.

Here's what I think is the relevant language from the reservation:




I underlined what I thought was most relevant. The pre-order price is only an estimate and is subject to change. So until you get a final price sheet from Tesla, they are reserving the right to change the amount owed, it sounds like.

That's still ambiguous, and a presumptuous interpretation. How they are actually treating it "currently" is that you can make changes to your vehicle up until you lock in, and are subject to price increases (such as FSD) at the time of those changes. That's what happens right now. If you change your configuration, you pay the current FSD price, otherwise you have locked in the pre-existing FSD price. That has been confirmed by Tesla. Based on that, I'd assume (yes, speculation) that your ENTIRE base price is locked in as long as you don't change it (other than adding options). This is how Tesla has also worked historically. They raise or lower prices all of the time and you are usually bound to those prices unless you change your order. Then again that was always with a standard deposit. As you said above, this is not really a deposit. I'd only say the price lock is the same because they are treating it the same with FSD as of now.

Considering all Tesla models have gone down in price over time, and with the demand on EVs getting stronger all of the time, I'd find it highly unlikely that the actual price of the CT will go up. FSD may, but if anything, the truck itself will become cheaper.

 

[ShaneC]

I Really think so, The cheapest cybertruck is about the same price as the standard range Model 3. I cant imagine that a full size truck is that cheap. Tesla has a tendency to do this all the time. I really think that they will not release the 40k version until a year or two after the highest trim comes out. Then they will take it off the website and make it an "off menu" item. Like they did with the 35k Model 3 and the rear wheel drive Model Y

 

[alexgr]

Thanks!

After reviewing the order agreement, it actually is unclear. Although it says the price is subject to change, it suggests that such a price increase is only pursuant to changes in options/ configurations.

"As you may have only configured part of your Vehicle, any pre-order price provided to you in advance of the Final Price Sheet is only being offered to you as an estimate and is subject to change."

My guess is that if Tesla can't meet the price target +/- 3k or so, they will offer a "reduced" capacity option at the advertised price and longer waiting time. The price of the CT is truly fantastic if you compare its specs with other trucks. It's closer to HD2500 than to F-150. So, if specs are close to advertised, I'd easily tolerate a 3-5k price increase, though it's personal and I will be less happy I guess ... maybe half happy half pissed ... or maybe just pissed ... I don't know, but it will depend on how it rides.

 

[alexgr]

I Really think so, The cheapest cybertruck is about the same price as the standard range Model 3. I cant imagine that a full size truck is that cheap. Tesla has a tendency to do this all the time. I really think that they will not release the 40k version until a year or two after the highest trim comes out. Then they will take it off the website and make it an "off menu" item. Like they did with the 35k Model 3 and the rear wheel drive Model Y

CT will have no paint (a significant cost factored in painting process I guess), the interior is minimalist, the major material is shared with SpaceX and produced by/for SpaceX/Tesla at volume, the battery cost will be reduced significantly (compared to early Model 3 - for sure) by the time CT is produced.

So, there are many ways in which the CT will be more cost efficient in production than M3. ... but you might be right and we'll not see lower priced models for a while simply from maximizing profits standpoint.

 

[Uncle Paul]

The only price that really matters is the one you get when you configure your selection.

Pricing that Tesla announces is always subject to change. Steel pricing has almost doubled recently. Imagine that when production starts firmer pricing will be available.

 

[Fred42]

I have no doubt that Tesla will increase CT prices. It remains to be seen whether they will honor prices on existing pre-orders. Hopefully they will. When they have enough production capacity vs. demand, a RWD cheap model is likely. About half of pick-ups are bought by companies and government agencies and low price is often key.

 

[Bridor]

The price of the Cybertruck will go down, not up.

Just my opinion - I may be completely wrong.

Brent

 

[Krazaak]

Even if Tesla honors the base trim prices of the Cybertruck, there's no guarantee there won't be mandatory "premium" options on the early configurations to offset any material cost increases. They may honor reservation prices and simply push you to the back of the line if you're unwilling to pay the upcharge for the options, same as they did on the Model 3.

 

[DarkandStormy]

Even if Tesla honors the base trim prices of the Cybertruck, there's no guarantee there won't be mandatory "premium" options on the early configurations to offset any material cost increases. They may honor reservation prices and simply push you to the back of the line if you're unwilling to pay the upcharge for the options, same as they did on the Model 3.

I believe Elon mentioned they may do some colors, but I'm guessing those will cost extra. Upgraded wheels (if they exist)? Extra. There has been a lot of chatter about various things they could add on - I'm sure all of them will cost more money.

 

[mark95476]

Yup. People reserve a CT and they get a price.

Suppliers work the same way and there are many in Tesla's ecosystem that have been doing this for years or decades. Tesla commits to buying a set amount of product or material in a contract (for a set number of quantity or units/year) and they get a price.

The price has and will fluctuate, as with anything else. The MY's price dropped $3k shortly after I got mine at the end of June, 2020.

The only price that really matters is the one you get when you configure your selection.

Pricing that Tesla announces is always subject to change. Steel pricing has almost doubled recently. Imagine that when production starts firmer pricing will be available.

 

[alexgr]

I believe Elon mentioned they may do some colors, but I'm guessing those will cost extra. Upgraded wheels (if they exist)? Extra. There has been a lot of chatter about various things they could add on - I'm sure all of them will cost more money.

Nothing compares to Porsche's "Electric Sport Sound" option just for $500!

 

[ThomasD]

US stainless steel prices inch up; July price increase said looming​

Stainless steel prices in the United States rose this month due to higher surcharges, with market participants broadly in agreement that mills will implement a July base price increase.
American Metal Market’s assessment of Type 304 and Type 304L stainless cold-rolled sheet rose by 2 cents to $1.40 per lb and $1.42 per lb fob mill respectively on Monday June 11, and Type 316L stainless cold-rolled sheet gained by 1 cent to $1.85 per lb.
Prices for Type 304 and Type 304L stainless coiled plate both rose by 1.5 cents to $1.24 per lb and $1.26 per lb...

 

[snikt]

The pricing for the Cybertruck really doesn't make any sense compared to the Model 3 or Y. Technically the CT Dual-motor has more range, is faster, has the larger screen, adaptive air suspension, etc.. and is cheaper than the Model Y ? Nearly the same price as the Model 3 LR AWD now.

Sedans and Trucks are usually very far apart in pricing, especially similarly equipped

 

[alexgr]

The pricing for the Cybertruck really doesn't make any sense compared to the Model 3 or Y. Technically the CT Dual-motor has more range, is faster, has the larger screen, adaptive air suspension, etc.. and is cheaper than the Model Y ? Nearly the same price as the Model 3 LR AWD now.

Sedans and Trucks are usually very far apart in pricing, especially similarly equipped

I agree. Unless the cost of the paint shop and stamping is high comparative to using easy-to-weld easy-to-bend SS. The actual number of parts and production steps in the Cybertruck can be drastically smaller than for a traditional vehicle. Also, new battery tech is going to make the ranges longer and prices lower; I'd expect that the Model Y will be about 400 miles and cheaper next year. IF (and this is a big IF) Tesla can deliver on a truck with 300 mile range with 6.5" bed and 3500 lbs payload capacity AND with the Air Suspension for $50k, that will be a total market killer. And I don't even know if Ford will be able to survive after that.

 

[snikt]

I agree. Unless the cost of the paint shop and stamping is high comparative to using easy-to-weld easy-to-bend SS. The actual number of parts and production steps in the Cybertruck can be drastically smaller than for a traditional vehicle. Also, new battery tech is going to make the ranges longer and prices lower; I'd expect that the Model Y will be about 400 miles and cheaper next year. IF (and this is a big IF) Tesla can deliver on a truck with 300 mile range with 6.5" bed and 3500 lbs payload capacity AND with the Air Suspension for $50k, that will be a total market killer. And I don't even know if Ford will be able to survive after that.

Even if it does hit all of those things I think the styling will be a killer for probably many people. This is just a guess but the people looking at F150s, Rams, etc.. aren't going to be interested in the CT

CT is going to be for like the techy people or maybe the cool construction dad who wants a truck

 

[Physicslawyer]

I can't imagine how they will deliver at the quoted specs and price, but I'm hopeful!