Tesla Slashes Prices

[newmme]

Regarding the gross margin Tesla reports: It's an apple to orange comparison because Tesla categorizes many costs differently to goose up its gross margin. Most notably, it doesn't have dealers like other OEMs. This creates a big discrepancy. Warrant costs classified as "goodwill" has been another trick up Elon's sleeves. Then these high gross margins are regurgitated by stock market pimps like Cathie Wood, Ron Baron and the sell-side analysts till these are imbibed in people's brains. When the one-man company's main purpose is to pump up the stock so the CEO can get richer, many odd things happen.

GLJ, seems factually correct

Sponsored

 

[RickMachE]

Same here - knowing that the Tesla used prices have tanked as a result this month...

As for Ford, I don't think they will do anything.

Demand here in So Calif is still very high for EVs and are commanding ADM even in January.

I am going to list my '22 Lightning for sale as my incoming '23 MME will be replacing it.

My auto broker is handling the Lightning listing and he said I should have no issues selling it over MSRP with 6000 miles on it because it's such a rare EV.

Why are using a broker? A monkey could make a profit on that.

 

[macchiaz-o]

Is there anyone (even people who own one) who thinks the MY is a good looking vehicle? The MY might be proof that something can be objectively ugly.

I'm pretty sure the design is intended to deter catalytic converter thieves.

 

[KevinS]

Is there anyone (even people who own one) who thinks the MY is a good looking vehicle? The MY might be proof that something can be objectively ugly.

It's fine if you like Tesla's design language. They've sold a lot of cars and I know a lot of people who love them.

Personally, I like the Roadster and the Model S. That's it.

 

[4sallypat]

Why are using a broker? A monkey could make a profit on that.

The auto broker is a past BMW sales rep that started his own business.

Giving him the opportunity to sell it since he has an extensive list of customers that he finds vehicles for - mostly overseas customers that will pay premium to have a vehicle shipped internationally....

If he doesn't find a customer, he said he will list it on various sites for me.

Saves me time and worth paying him 1% commission.

 

[nvabill]

Wait till you read the posts in the Tesla forums like teslamotorsclub.com.

But that is the whole point. People have different reasons to buy a car. These price cuts will influence the decision of some buyers. But for many (like myself), a Tesla aka an Elon-car is a no-go and I think this fraction of the population is growing rapidly due to the CEO shenanigans, who BTW, is the only branding Tesla does now. Instead of spending money on marketing, Elon awarded himself tens of billions to do it through twitter. Obviously, no one else will lie as much as he does. And no other media other than social media has such low liability for frauds. So he had his reasons besides collecting billions more.

If price was everything, then everyone will be buying the Chevy Bolt, not the Model Y at 2x the price.
Ford and other companies will adjust prices, either through MSRP cuts or ADMs turning into discounts, when they can't sell every car they make. That doesn't depend on Tesla alone. They just have to look at their own unsold inventory. These things are nothing new for the car companies They have been doing these for multiple decades. if anything, it's the tax rules they are more worried about.

In my opinion what is different now is we are in uncharted territory and I have never seen this happen in my lifetime. But, as they say, time will tell.

 

[mjs020294]

Is there anyone (even people who own one) who thinks the MY is a good looking vehicle? The MY might be proof that something can be objectively ugly.

There is a big difference between saying its good looking and calling it ugly. You are biased beyond reason if you can call a MY ugly while drooling over the styling/shape of an MME. I actually know quite a few people that don't like the styling of the MME.

 

[tdmeng]

If anyone remembers 2008, there was a good article about BMW / Benz introducing lower cost models. It was at the risk of damaging brand, but necessary for the economic down turn.

Tesla is going after the Honda Accord, Toyota Camry market.

A M3/MY is not a luxury car, it might be an entry luxury car, but that line has been blurred for so long in the car industry (who believes an Acura ILX / Integra is a luxury car???) That car sells for $32-$36k. MSRP for anything acura or infiniti just became moot (unless you really want a stick shift)

Tesla also has super chargers, premium connectivity, steam gaming, and monthly fsd (you can argue it’s vaporware, or Elon throwing all his chips on the table). Every car manufacturer is trying to monetize car subscriptions, but you have to get them to buy the car first.

Eventually every car manufacturer is drooling at the apple store / google store, they’re just trying to figure out how much to push the boundaries.

Mostly everyone here will probably happily renew their blue cruise subscription. (I can justify, it’s almost like paying for my regular oil change)

 

[SWO]

It's fine if you like Tesla's design language. They've sold a lot of cars and I know a lot of people who love them.

Personally, I like the Roadster and the Model S. That's it.

I noticed you didn't say it was good looking.

That they've sold a lot of cars is obvious but that doesn't mean buyers think it's good looking. Manufacturers use controversial (read: ugly) styling all the time for status vehicles on purpose. The Prius is probably the best example of a car which was made ugly on purpose (because Prius buyers wanted people to know they were driving a Prius). Now that the Prius is no longer being driven by celebrities, their styling is more mainstream.

As for your comment on design language, I think the Model S is an attractive (albeit plain) looking vehicle. The MY, IMO, looks ridiculous and I would be embarrassed to drive one.

 

[KevinS]

It's not my job to defend the Model Y.

Car styling is very subjective and I know a lot of people who like the way the Prius looks too. Not my cup of tea, but not my monkey or circus.

Model S design is now a decade old. It was a stunning vehicle when it first came out. Now, it looks like a decade-old design that's been emulated by many.

 

[SWO]

There is a big difference between saying its good looking and calling it ugly. You are biased beyond reason if you can call a MY ugly while drooling over the styling/shape of an MME. I actually know quite a few people that don't like the styling of the MME.

Everyone who thinks the MachE is good looking can't call the MY ugly? You were the guy who was just deriding folks who make subjective comments about styling, right?

Also, I never said the MME was objectively good looking, not sure what your point was supposed to be there, either.

 

[itsthenewdc]

Let's not forget that for some people the appeal with Tesla is the Full Self Driving, which is a $15k add-on currently. Making the total cost of the MY roughly $70k.

 

[Stanmckinney]

The auto broker is a past BMW sales rep that started his own business.

Giving him the opportunity to sell it since he has an extensive list of customers that he finds vehicles for - mostly overseas customers that will pay premium to have a vehicle shipped internationally....

If he doesn't find a customer, he said he will list it on various sites for me.

Saves me time and worth paying him 1% commission.

Clients. Not client’s. Wouldn’t trust him just for that.

 

[GreaseMonkey]

The Prius is probably the best example of a car which was made ugly on purpose (because Prius buyers wanted people to know they were driving a Prius). Now that the Prius is no longer being driven by celebrities, their styling is more mainstream.

I couldn’t help myself when I read your comment. While this is not my vehicle, I drove a Prius before the Mach-e and I completely agree with you.

 

[clsmooths]

I'd be tempted on a MY Performance if they weren't so fuggn ugly.

No shot..MACH-E is soooooooooooooo better looking!! Especially the GTPE

Sponsored