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Tesla cuts car prices by up to $5k
- mcot2 6y agoBesides the economic slowdown I suspect some of this is also the Model Y is eating into sales of the other 3 and this price adjustment is mostly to differentiate them a bit more.
- brianwawok 6y agoMakes sense. Model Y is picking up steam. I doubt they are selling 100% production of the other models (Y is eating a bit into sales of all 3). S and X are both in need of a refresh, they have worse battery tech than both the 3 and Y and missing some of the cool Y features (heat pump, octovalve). Current wait is 8-12 weeks on a Y, and only a week or two on the rest. In line for my first Tesla (a y). It has been a very different car buying experience!!
- new_realist 6y agoIf you expect reliability and quality, you also find the ownership experience to be different. I have owned three.
- dvdbloc 6y agoPlease elaborate
- new_realist 6y agoOne X was a lemon and spent months in the shop. The second X was better but still needs a warranty repair every few months. The 3 is better still but has had six or seven service visits.
- andrewmunsell 6y agoAnecdotally, my father has had an early (2018) 3 for the last 2 years and hasn't had any issues. The only service done so far has been recall work for the frunk latch (I guess he doesn't use it much and didn't notice the defect that the recall was supposed to fix).
- brianwawok 6y agoThe reliability stats disagree with OP. So I wouldn’t read too much into his single data point. Especially wrt the 3. The X def had some issues around the falcon wings etc.
- andrewmunsell 6y agoEven Elon has said they may have gone too far with the X, and that it was their faberge egg. I would love to have an X purely for the "cool" features like the automatic & falcon doors, but there's just so many failure points (and, of course, the cost).
- brianwawok 6y agoYah for sure. Which is sad because I really want a car the size of the X. But at like 55-65k. Basically a Y+. I don’t need falcon wings nor rocket speed.
- amcoastal 6y agoGood luck! Tesla's are marvels of technology, but the lockdown they have on maintenance and repair -- which includes extremely high costs -- is enough to shy me away until we get a 'right-to-repair' law.
- beamatronic 6y agoI would just settle for a full pipeline of replacement parts!
- revnode 6y agoYou are absolutely right, but it's also not as bad as it was before. You can now buy "unrestricted" parts. Before, you couldn't even buy an air filter.
- deleted 6y ago[deleted]
- FireBeyond 6y agoThanks to legislation, not to Tesla's magnanimous nature. Several states (notably, MA) had to wave increasingly large sticks at Tesla to get any traction there. You couldn't even buy a screw from their online ordering system. "Price: Not listed". "Order: Contact Tesla" (who would then say "not available to you". Even their service manuals. Make an appointment, in MA. Pay a fee. Go to a specified location, weeks later. Go into a room with paper and pencil, no cameras, phones, or computers allowed. Be given a time limit.
- lazyjones 6y ago> Current wait is 8-12 weeks on a Y, and only a week or two on the rest. Here in Europe it's August for all of S/3/X.
- brianwawok 6y agoYou are waiting for Berlin to go up right? Or is that next year?
- lazyjones 6y agoS/3/X come from the US (partly assembled/finished in the Netherlands AFAIK).
- radicalbyte 6y agoThe Y isn't even coming out in Europe for another year. That's probably good because it's the only viable Tesla for me and I'll probably have the budget for it next year.
- andrewmunsell 6y agoThere's a couple areas where Tesla needs help, and the two I've experience so far waiting for my Y is logistics & customer service. They've had extremely lousy communication so far with the delivery. I was originally supposed to have the car on Memorial Day, but they called the day before saying it wasn't in WA (where I live) yet. When I called back on Memorial Day and asked where it actually was, they told me it got on a truck that morning. Logistically, if they knew the car wasn't getting on a semi anytime soon, why could I schedule a delivery appointment? Yesterday, they re-scheduled my delivery (which is supposed to now be tomorrow) from the service center to a direct home delivery without notifying me. Of course, I had to call them to confirm and ask whether they were going to try and fit a semi truck on the narrow city streets where I live or if they were going to drive the car itself to me, but the delivery specialist has no clue. Hopefully things go as planned tomorrow and there isn't another delay, but the communication so far has been worse than my experience dealing with a regular car dealership. That being said, I'm looking forward to the Y and there's a reason I'm buying a Tesla instead of something else. I can't complain too much since the timing of the delivery (as long as it isn't delayed too much more...) is fantastic since my existing lease ends in a week, but I'm looking forward to actually driving it and forgetting about this headache. If Tesla figures out the logistics & customer support (and QC...), they'll be worlds ahead in the buying experience, but for now most other car dealers coddle you much more (with the exception of the negotiation process).
- dawnerd 6y agoIt seems highly dependent on which service center and who is assigned to you. I places two orders early this year and the first one the guy didn’t really respond to my emails at all but the second one was very responsive and proactive. Regardless they really really need to work on this.
- cptskippy 6y agoAt one point they had CSRs that would manage you and it was similarly unresponsive. Having dealt with automotive service centers for 30+ years, it's just something I've come to expect. Some people are proactive, some people are reactive, and some people just don't give a flip.
- awill 6y agoThe Model S came out in 2012. Surely it's time for a full redesign, or at least a refresh with their existing battery tech etc..
- gpm 6y agoPeople keep talking about batteries getting cheaper, how likely is it that this largely reflects changes in the cost to Tesla to produce these vehicles? On the flip side how likely is it that this is cutting substantially into Tesla's profit margin?
- xoxoy 6y agopricing rarely has anything to do with cost to produce, especially for goods are aren’t perceived as commodities
- mywittyname 6y agoLike how the V8 Mustang is a 10k premium over the turbo four, there's absolutely not a 10k difference in production costs.
- beamatronic 6y agoCheck out the top Porsche 911 vs the bottom. There is a six figure difference!
- ChuckNorris89 6y agoAnd the food you buy in a fancy restaurant doesn't have a 10x difference in production vs the one in the takeaway around the corner but that's not how pricing something in a free market works.
- lazyjones 6y agoTesla have claimed before that it does. > “When we launched Model X 75D, it had a low gross margin. As we’ve achieved efficiencies, we are able to lower the price and pass along more value to our customers,” Tesla said in a statement. (2017) In this case, selling excess inventory/capacity seems a more likely reason, perhaps also the introduction of new Model S/X variants/features.
- clouddrover 6y agoThey're trying to boost sales with price cuts: https://www.reuters.com/article/us-tesla-prices/tesla-cuts-prices-by-as-much-as-6-in-north-america-to-boost-demand-idUSKBN2330DP https://www.reuters.com/article/us-tesla-prices/tesla-cuts-p... All car manufacturers have seen sales decline due to the coronavirus pandemic.
- natch 6y agoThis has always been their stated plan, to pass on cost savings to customers as they get more efficient and profitable. They did some similar cuts last year. Nice to see it continuing.
- akmarinov 6y agoThey also raise prices from time to time, it's not all cuts.
- natch 6y agoRight, depends on various factors obviously.
- anthony_r 6y agoIf this is the stated plan then I really do not understand why the stock behaves like this was the next Apple (i.e., a company with massive margins).
- nicoburns 6y agoYou're assuming that people are expecting a monetary return on their investment. I suspect a lot of Tesla investors are expecting a return in the form of reduced problems due to climate change.
- rcMgD2BwE72F 6y agoSuch investors tend to hold, they don't sell just because the stock hits a certain price. This reduces the actual float, making shares harder to buy. This could be an issue if Tesla were to be added to the S&P 50O in Q2 or Q3, forcing big players to get hold of the stock at market price. Let's see.
- gamblor956 6y agoGenerally the S&P only adds companies that are profitable (at the time they are added to the index), in addition to several other criteria. (https://qz.com/1587963/how-the-sp-500-is-built-and-who-decides-what-companies-go-in-it/ https://qz.com/1587963/how-the-sp-500-is-built-and-who-decid...)
- lazyjones 6y agoWhat all media (except Reuters...) failed to report: free Supercharging seems to be gone for S/X.
- brianwawok 6y agoI think someone did the math and you would need to supercharge 100k mikes to pay 5k. The cash is a better deal for almost all.
- lazyjones 6y agoIt's a convenience and mental thing. I am more likely to go on long tours/holidays with my S knowing it's free (and bragging about it), so the calculation doesn't really work out.
- jm4 6y agoPersonally, I’d rather have $5k taken off the purchase price. I got 7500 free supercharger miles with mine and most of them are going to expire. I go on some road trips and use super chargers, but most of the time you’re charging at home. You’d have to do a hell of a lot of supercharging to spend $5000 on it. Frankly, if you can’t charge at home you probably shouldn’t buy the car.
- bryanlarsen 6y agoTesla is going to get a huge amount of free publicity today. First from the SpaceX manned launch today who are going to be driven to the pad in a Model X and then later this evening from Jay Leno's Cybertruck test drive episode.
- ghastmaster 6y agoThat's a very expensive way to get free publicity.
- cptskippy 6y agoAll of Elon's companies give free publicity to one another. They all somehow manage to keep in the active news cycle. There was an announcement last week about the Boring Company in Vegas that mentioned Tesla's would be used as people movers.
- gamblor956 6y agoThere was an announcement last week about the Boring Company in Vegas that mentioned Tesla's would be used as people movers. This has always been part of the plan for the Boring peoplemover in Vegas...
- cptskippy 6y agoYes AND every article that I read about completion of the tunnel unnecessarily brought up the fact that they'd be using the EVs as people movers. Because to my point, any news coming out of one Musk company usually has cross marketing for another.
- Shivetya 6y agoFree supercharging is not on the X or S now. That is a significant change. Supercharging Max/ Payment Type200 kW max; Pay Per Use
- akmarinov 6y agoI think that's a good thing. Less people charging exclusively at the superchargers due to it being free - less queues. Also they use a lot of the Supercharger money they get to build more Superchargers.
- trade_unionist 6y agoI hope Musk is still cool once Tesla is a monopoly. Companies have a tendency to turn on their users/customers once they get giant.
- brianwawok 6y agoYou can always hop brands once someone gets too big and turns evil.
- clouddrover 6y agoTesla has gone from being the number 1 BEV manufacturer in Europe to now being number 3. Soon Hyundai will also overtake them in Europe and Tesla will fall back to 4th: https://www.schmidtmatthias.de/post/april-2020-european-electric-car-market-top-sellers https://www.schmidtmatthias.de/post/april-2020-european-elec... So don't worry about Tesla becoming a monopoly. It's not a practical reality.
- steelframe 6y agoTesla was amazing and unparalleled from about 2012 to 2018. In the U.S., since the Kona/Niro EVs, I-PACE, e-tron, and Taycan have shipped along with the Electrify America rapid charging network, Tesla no longer has a corner on the EV market. A fully-decked-out Model S costs the same as a base Porsche Taycan 4S. I'd challenge anyone to test drive both cars configured at the ~$115k price point and then come back and tell me you wouldn't chose the Porsche.
- tonycoco 6y agoCheapest Taycan I could find was $145k. 192 mile range. I'll take the Model S that is faster and nearly double the range at this point.
- gamblor956 6y agoThe Taycan is a true luxury performance car. You're not buying it for the range or nominal maximum speed, you're buying it for the creature comforts...and the ability to go 95% as fast as the (current versions of the) Model S for 100x longer, or even faster with the creature comforts removed for racing.
- nojito 6y agoMuch more information here. https://www.reuters.com/article/us-tesla-prices/tesla-cuts-prices-by-as-much-as-6-in-north-america-to-boost-demand-idUSKBN2330DP?feedType=RSS&feedName=technologyNews https://www.reuters.com/article/us-tesla-prices/tesla-cuts-p... Can we update the url?
- archeantus 6y agoIf they gave me the 0% financing option like the other auto makers are doing, I’d buy a Tesla today.
- oblio 6y agoIn Europe the based model 3 is still €47k. So about $50k. And that's the starting price :( That's an almost 33% higher price than the US version.
- varjag 6y agoVAT accounts for the bulk of the difference here.
- cptskippy 6y agoWould VAT apply to cars coming out of their German Gigafactory?
- benhurmarcel 6y agoYes. VAT applies to all sales, it's not an import tax.
- blaser-waffle 6y agoVAT is on everything. So yes. But it won't have the 10% import duty coming from the US, on top of VAT. And lower transport costs, since they're not being hauled from the US to the EU.
- objclxt 6y agoAdvertised prices in the US do not include any taxes, whereas in Europe they have to account for VAT. The average rate of VAT in Europe is around 21% - it represents the bulk of the difference in price. The rest you can put down to currency hedging, import duty, and transport to ship the cars from the US.
- guerby 6y agoI think it's because of - 10% tax/duty on imported cars from the USA to the EU (1) - shipping costs from USA to EU - price are with VAT included in EU (all consumer products), so around 20% When the cars are made in Berlin (mid/late 2021 if Tesla is to be believed) price will probably go down by a significant amount for EU buyers. And there will be more non Tesla BEV models in the next few years, another factor for Tesla to lower prices. Peugeot e-208 seems to have a nice success, and Volkswagen will soon have lots of BEV models. (1) https://www.carfax.eu/article/customs-clearance-and-import-tax-usa https://www.carfax.eu/article/customs-clearance-and-import-t... Disclaimer: I own a Tesla Model 3 SR+ since last september, in France.
- jmacd 6y agoIt seems pretty obvious that the previous prices were inflated to capture the federal and other subsidies. It's clear those aren't coming back, so they are adjusting to the actual market forces.