Tesla Price Cuts Across The Board

[Jac]

Polestar: “Ouch.”

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[brancky3]

Really glad I sold my Model 3 LR to carvana when I did 3 weeks ago, I would have been killed with the price they'd offer now.

 

[Rousie13]

SOB. We took delivery of my wife’s MY LR on 12/26, so we at least got the $7500 off and 10k supercharging miles. But it would have been such a better deal now once you factor in tax savings. Tesla’s trade in offer was $36-40k for her Y……wow! For the heck of it, I did appraisals from Carvana and vroom. My wife looked at me and goes don’t even think about it!! I have no idea what she meant.

 

[Dark-Fx]

If I had not taken delivery I would cancel, lose my $100 ordering fee, and place a new order at the lower price.

I'd just outright cancel. Tesla was doing what all the legacy dealerships were guilty of, just stuffing it into the MSRP instead of a "Market Adjustment". I don't do business with scummy dealers, why should I do it with scummy manufacturers?

 

[SoCal Rob]

RJ said 80% of R1T reservation holders have never owned a truck. Would assume those folks are cross shopping.

An important word in my question was need. I’m not saying that people are rational with their wants, but how many buyers who NEED a truck or SUV are cross-shopping sedans?

 

[brancky3]

An important word in my question was need. I’m not saying that people are rational with their wants, but how many buyers who NEED a truck or SUV are cross-shopping sedans?

Personally I don't understand how anybody stays in one segment and doesn't cross shop others. Do I need a truck? No, I could just as easily go rent one from Home Depot when I need to do truck stuff. I actually went from a truck to a sedan (Gladiator -> Model 3) but before that I had a mixture of hatchbacks, sedans, small SUVs, etc (not in that order). My friend is adamant that nobody would cross-shop a Chevy Malibu vs a Chevy Impala even, since they're in different segments. Makes no sense to me, just like the segments in every category seem to be completely made up nowadays.

I don't think anybody "NEEDS" a full size SUV that can't get away with a midsize or even a compact.

 

[maverick92]

Purchased my wife's MYP at $70,000 in September... ouch! I'm glad to see Tesla prices finally come back down to normal, but I'm not sure why they didn't drop in smaller increments. I suspect the MY and Model 3s will fly off Tesla's lots now.

 

[Dark-Fx]

How many people who need a truck or SUV are cross-shopping sedans?

You're forgetting the cybertruck. Oh, Tesla still isn't making those yet? Nevermind.

 

[SoCal Rob]

Personally I don't understand how anybody stays in one segment and doesn't cross shop others. Do I need a truck? No, I could just as easily go rent one from Home Depot when I need to do truck stuff. I actually went from a truck to a sedan (Gladiator -> Model 3) but before that I had a mixture of hatchbacks, sedans, small SUVs, etc (not in that order). My friend is adamant that nobody would cross-shop a Chevy Malibu vs a Chevy Impala even, since they're in different segments. Makes no sense to me, just like the segments in every category seem to be completely made up nowadays.

I don't think anybody "NEEDS" a full size SUV that can't get away with a midsize or even a compact.

I guess my perspective is different because I prefer driving a sedan but need an SUV. We go off-roading a LOT, we often take 3 or 4 friends on our off-road adventures, we own parcels of land which we could not reach in a sedan, we have a lot of visitors, we work on a lot of projects which require moving bulky cargo., and we have a travel trailer which we occasionally move short distances. The LR3 we’ve owned the last 9 years has met our needs very well, and the R1S should be better than the LR3 in most ways. A Tesla won’t do what we need.

 

[brancky3]

I guess my perspective is different because I prefer driving a sedan but need an SUV. We go off-roading a LOT, we often take 3 or 4 friends on our off-road adventures, we own parcels of land which we could not reach in a sedan, we have a lot of visitors, we work on a lot of projects which require moving bulky cargo., and we have a travel trailer which we occasionally move short distances. The LR3 we’ve owned the last 9 years has met our needs very well, and the R1S should be better than the LR3 in most ways. A Tesla won’t do what we need.

Completely fair and understandable. My wife and I don't have kids, don't do any off roading, but we do occasional road trips to the beach and also have 4 dogs. A 2 seater wouldn't work for us but literally any other vehicle segment is on the table.

 

[Dark-Fx]

A Tesla won’t do what we need.

It will if you're creative. (and don't have deep water crossings)
https://www.caranddriver.com/featur...dified-tesla-model-3-tackles-the-mojave-road/

 

[SoCal Rob]

It will if you're creative. (and don't have deep water crossings)
https://www.caranddriver.com/featur...dified-tesla-model-3-tackles-the-mojave-road/

I don’t think that’s going to hold 6 adults while doing what it does off pavement. Hm, if I’m creative…



I can strap one or two passengers on the roof! Now, on to figuring out how to use this slightly modified Tesla to pull a 6,000+ pound travel trailer while off-road.

 

[Dark-Fx]

I don’t think that’s going to hold 6 adults while doing what it does off pavement. Hm, if I’m creative…



I can strap one or two passengers on the roof! Now, on to figuring out how to use this slightly modified Tesla to pull a 6,000+ pound travel trailer while off-road.

Portal axles with gearing reduction will help out for the trailer and off-road.

 

[virgnia_rivian]

A few things to consider:

1. January/February are traditionally the slowest months of the year for car sales.
2. TSLA didn't deliver as many cars in Q4 as they had hoped (or analysts expected)
3. TSLA was offering the discount and free charging incentives even as other automakers weren't offering any end of year incentives (and because they were sitting on vehicles)
4. As more manufactures launch BEVs TSLA will really face competition for the first time, especially from large automakers with big advertising budgets and long-time loyal customers. Regardless of what you think of Elon, now is not the time for the Twitter distraction. There are definitely car buyers who want to go EV, but don't want a Tesla.
5. TSLA is facing strong/growing BEV competition in China, and I know we don't think about that market in the US, but it's vital to TSLA's growth and bottom line.

 

[manitou202]

Tesla just increased demand and squashed the BEV competition. They have the demand button down to a science. The assembly plants can continue to run at full speed.

Can't tell if you are serious. These cuts will destroy Tesla's margins and stock.

Let's assume Tesla currently makes $20k in profit per Model 3/Y and sells 1M units per year. Based on the $13k price cut, they would need to sell 2.85M units per year to make the same margin dollars. This is absolutely horrible for a for profit business. Their EPS will absolutely be crushed.

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