Tesla Price Cuts Across The Board

[2025R1S]

Yesterday was a momentous day. There is not a single EV forum that doesn’t have a 10 or even 20 page thread about this topic. This shook the EV industry, no doubt about it.

Short term - this is, as someone else called it, a death punch to the nuts of brands like Ford, GM, Kia, Volkswagen. Models are facing incredible headwinds now - Lyriq, Q4 Etron, Mach-E, Ocean, etc. Brands stand to lose a lot of money if they want their vehicles be reasonably competitive with Tesla.

Medium term - this is what consumers need. Others have pointed out that we’ve been stuck in this “buy an EV at all costs” phase for awhile, where manufacturers are raising prices 20% year over year, we’re overpaying MSRP because dealers are shady, were waiting months and years. I don’t know about you, but I am getting sick and tired of our beloved EV’s creeping closer to 100k than 50k. I saw it with Rivian - as they were priced to become luxury mall cruisers. We need some cutthroat competition to help us out.

We need Rivian, Fisker, GM, Ford - to see the need to really bring down prices in a substantial way. There are only so many people trying to buy a 120k SUV or 169k sedan.

I do worry about brands like Fisker and Rivian who don’t have the flexibility or scale to drive down costs and protect their margins. The future is bright, but uncertain. We need to think of our pocket books, and make the right financial choices. Many of us run the risk of paying top price and early adopter price premiums that could really come back to bite us in 3-5 years.

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[Jac]

Every year when I’m writing the check for my taxes, plus the penalty for not paying quarterly, I get pretty pissed off. The amount the government takes from me and the very little I get for it is always a tough pill to swallow.

I think if people were more aware of it as you say there would be a different conversation. Especially when you think that most of the stuff that impacts you daily doesn’t come from federal taxes but from state and local ones.

You are right. Think of the money we could save if no state could receive any federal money that exceeded what that state's residents pay in federal taxes. Let those states stand on their own two feet.

 

[Tahoe Man]

Vinfast seems to have no one to blame but themselves, but this will not help. Only the VF9 stands any chance, because of the 3 rows.

There is no reason to fault Tesla for price changes like you mention. The part that is surprising is why they didn't gradually lower the prices. Especially for the Model Y. I guess they needed it to be below $55k for tax credit purposes, but a $13k price drop all at once is very unusual even for the big three. It's rare to suddenly have a $13k incentive on a vehicle, let alone a $13k MSRP drop.

Imo, they did the dramatic price drop for a shock and awe advertisement. Every business news program carried it.

 

[manitou202]

Short term - this is, as someone else called it, a death punch to the nuts of brands like Ford, GM, Kia, Volkswagen. Models are facing incredible headwinds now - Lyriq, Q4 Etron, Mach-E, Ocean, etc. Brands stand to lose a lot of money if they want their vehicles be reasonably competitive with Tesla.

We need Rivian, Fisker, GM, Ford - to see the need to really bring down prices in a substantial way. There are only so many people trying to buy a 120k SUV or 169k sedan.

The ID.4 and Ioniq 5 still cost less than the Model Y and are competitive. The Mach-E will need to come down in price, and the Lyriq is in another class of luxury compared to this group.

GM and Nissan are the only two automakers that have offered anything close to affordable EVs with the Bolt and Leaf. The Bolt is an excellent vehicle honestly for the price. GM's new EV Blazer and Equinox will be very competitive in terms of price and features.

Keep in mind, Tesla was the one that started all of the crazy price increases and everyone else seemed to follow. Most of the other companies don't have demand issues yet, but when they do they will drop prices like they typically do. The other automakers can still rely on profits from other ICE vehicles if they need to drop prices on EVs. Tesla doesn't have this luxury.

 

[2025R1S]

The ID4 doesn’t come with AWD until the $48k model, which makes it more expensive than the Model Y. There is no RWD Model Y. Won’t even bother talking about lack of software updates or CCS network since we know the drill.

I am surprised to learn Ford loses money on every Mach-E, and GM loses money on every Lyriq. GM is supposed to be profitable on the Lyriq in 2025.

What Tesla did yesterday was good. We all will benefit, even if we don’t buy a Tesla. I don’t know about y’all, but I like saving money. Competition creates better products, more affordable products.

The ID.4 and Ioniq 5 still cost less than the Model Y and are competitive. The Mach-E will need to come down in price, and the Lyriq is in another class of luxury compared to this group.

GM and Nissan are the only two automakers that have offered anything close to affordable EVs with the Bolt and Leaf. The Bolt is an excellent vehicle honestly for the price. GM's new EV Blazer and Equinox will be very competitive in terms of price and features.

Keep in mind, Tesla was the one that started all of the crazy price increases and everyone else seemed to follow. Most of the other companies don't have demand issues yet, but when they do they will drop prices like they typically do. The other automakers can still rely on profits from other ICE vehicles if they need to drop prices on EVs. Tesla doesn't have this luxury.

 

[Tahoe Man]

Cheap gasoline competes with EV sales... The drop in oil prices has an impact.

 

[RoadRunner]

The ID.4 and Ioniq 5 still cost less than the Model Y and are competitive. The Mach-E will need to come down in price, and the Lyriq is in another class of luxury compared to this group.

Ioniq 5 and Audi Q4 E-tron are going to have a hard time competing in the US without a big price cut, as they are not eligible for the tax credit until they can start building them in the US. After the price cuts and tax credit the Model Y looks like a much better value than either of these, with longer range, better charging network etc. I think Hyundai and Audi are in for a tough ride here, Tesla is about to take a big chunk of their sales. And if they do cut their prices to compete, they'll be losing a lot of money on each vehicle sold. They are screwed either way.

 

[RoadRunner]

What Tesla did yesterday was good. We all will benefit, even if we don’t buy a Tesla. I don’t know about y’all, but I like saving money. Competition creates better products, more affordable products.

100% agree with this. Hopefully this is just the start of the EV price wars and real competition heating up. Should be the end of ADM on all other EV's as well.

 

[DJG]

When did they make Enhanced Autopilot a $6,000 upgrade? Was that with these price changes and therefore masking the real price reduction?

FSD is now $15,000 (from base price), or $9,000 more than Enhanced AP. It's wild that that only gets you traffic light and stop sign control (with the "promise" of autosteer on city streets "soon")

 

[ravian]

A wise man once said “Teslas will be appreciating assets”. Not sure those who bought their Teslas in December would concur.

 

[Grabs10]

This is going to really hurt startups and legacy manufactures. Tesla not only controls the most reliable and really the only feasible network of “gas” stations for relaxed long distance travel, they have a manufacturing edge in its process that is going to take decades for others to replicate. The government is really going to have to kick the can on implementing the IRA, as written, as it gives such a huge benefit to Tesla vs anybody else currently

 

[Prime]

MY LR 7 seat, 20” Inductions and PUP upgrade. 0-60 will be 3.7s. Only thing missing is the Brembo brakes

The Model Y classifies as both an SUV or sedan in the IRA., depending on how it is optioned out.

Acceleration boost software upgrade takes the long range model Y from 4.8 to 4.3. Never heard 3.7 unless it’s a performance model. And yea brembos are gone though the calipers are apparently 2mm thicker on the performance model.
https://electrek.co/2020/09/25/tesla-launches-acceleration-boost-upgrade-model-y/

 

[R1T in SC]

I surprisingly got the email on 12/29 that my R1T was ready. I had a 2020 Long Range Model Y with almost 30K miles on it that I was trading in. The offers I got from Vroom, Carvana, KBB Instant Cash, and direct trade to Rivian ranged from 34-38K. I was just planning on going with the direct trade to Rivian for convenience but decided to get it appraised at CarMax as one last attempt for a better offer. They actually offered me 44K, which I took. I sold it to them last week. Seeing this recent price change makes me realize how lucky I was with the timing of my R1T and the trade in of my MYLR. Due to qualifying for the $7500 tax credit now, you can pretty much get a brand new MYLR for only a couple thousand more than what I just sold my Y to CarMax for last week. Sold mine just in time!

 

[Zorg]

ID4 was always purchased as the value car. With the Y price reduction, I expect that their sales are plummeting. We will find out if they have enough margin to counter Tesla. I doubt it.

 

[RivianXpress]

When did they make Enhanced Autopilot a $6,000 upgrade? Was that with these price changes and therefore masking the real price reduction?

FSD is now $15,000 (from base price), or $9,000 more than Enhanced AP. It's wild that that only gets you traffic light and stop sign control (with the "promise" of autosteer on city streets "soon")

These prices did not change.

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