Tesla cuts price of Model 3 & Model Y again!

[Mach1E]

Tesla isn’t trying to crash the market as that would also be bad for Tesla. They’re trying to undercut it and can do so because their manufacturing has become so much more efficient over the past 15 years. It’s forcing others to play catch up. Heck, Tesla was legitimately worried about bankruptcy during the Model 3 early buildup and now they’re quite profitable. If a startup can do it, Ford and the other legacy manufacturers can get there too.

We can’t be pro-capitalism only when it favors our own particular situations.

All these price drops happened in 2023.

As far as I know, there is nothing that changed in terms of Tesla manufacturing efficiency this year compared to last.

To be clear, I’m not anti-capitalism. I’m just pointing out the downside (negative affects) of these huge price drops.

If people are truly “pro-BEV” they shouldn’t be so happy about them.

We shall see how this plays out. But there is definitely blood in the water.

For Tesla, it is a very risky move. When you drop prices this much, it’ll be much harder to raise them back up. Can’t bet on another global pandemic supply chain crisis. Their only hope is that this does remove some of the competition.

But again, if the competition goes under, it’s bad for BEV enthusiasts.

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[Ghost Ryder]

Only so far for $$$ to drop before the others will be able to sue Tesla for “dumping” product. Not there yet, but, can’t go down to 0 either. It just reeks of desperation if you ask me. Dude is legit worried. And he should be.

Is it dumping products if they still make money on each sale?

 

[KevinS]

We shall see how this plays out. But there is definitely blood in the water.

For Tesla, it is a very risky move. When you drop prices this much, it’ll be much harder to raise them back up. Can’t bet on another global pandemic supply chain crisis. Their only hope is that this does remove some of the competition.

But again, if the competition goes under, it’s bad for BEV enthusiasts.

I guess a good question would be how pissed are existing Tesla owners by the price changes; do they feel burnt on their purchase and would they consider purchasing a Tesla again?

When Ford makes MME owners angry, it's a drop in the bucket relative to their overall owner base. Tesla is capable of pissing people off at scale!

 

[jason330i]

Maybe they have to drop their prices because Tesla Vision is a bust.

 

[Pushrods&Capacitors]

Is it dumping products if they still make money on each sale?

I said only so far. Read. Comprehend. We’re not there yet obviously. Only so far to drop though.

 

[ChehRob]

Jacking prices up and down will encourage people to wait in the future for prices to be low. Why buy now, next month if we quit buying they will drop.

 

[Pushrods&Capacitors]

Have you looked at sales numbers??

Q3 Tesla sold nearly 500k EVs

Q3 Ford sold nearly 21k EVs.

I would be worried too if I was selling 24x the volume of my competitor who just lost 4.5B on EVs. /s

Yes, I have. I know. The initial ramp has been slow and fraught with challenges. However. Battery facilities will be coming on line in the near future and additional EV prod lines as well. Things often look the very best for first movers just as they’re about to get very challenging, right?

 

[DevSecOps]

Is it dumping products if they still make money on each sale?

Pretty sure dumping is only on foreign imports. It doesn't apply to a company in the USA making products in the USA.

There's no law that prevents a company in the USA, selling a product made in the USA, from selling those products at cost even or even under cost. If this was a law then Ford would be breaking it because they are selling the MachE under cost.

Pretty sure dumping doesn't apply at all and there's nothing Tesla could do to trigger anti-dumping laws.

 

[mkhuffman]

Threads where people complain when dealers charge ADM.

Threads where people complain when prices go down.

It's called the (mostly) free market, and supply/demand. ECON 101. It's ridiculous to complain about it. Especially when prices go down, contrary to the massive inflation that is destroying the economy.

 

[nvabill]

Pretty sure dumping is only on foreign imports. It doesn't apply to a company in the USA making products in the USA.

There's no law that prevents a company in the USA, selling a product made in the USA, from selling those products at cost even or even under cost. If this was a law then Ford would be breaking it because they are selling the MachE under cost.

Pretty sure dumping doesn't apply at all and there's nothing Tesla could do to trigger anti-dumping laws.

It's actually @Pushrods&Capacitors who came up with this crazy idea but he won't explain what the heck he is talking about.

 

[Mach1E]

Threads where people complain when dealers charge ADM.

Threads where people complain when prices go down.

It's called the (mostly) free market, and supply/demand. ECON 101. It's ridiculous to complain about it. Especially when prices go down, contrary to the massive inflation that is destroying the economy.

And yet both are legit complaints.

Markets (in general) like stable pricing not significant volatility.

Big unpredictable swings create chaos and people are less likely to purchase.

I guarantee more than a few people purchased a BEV in the last couple years partially because they felt good about strong resale values.

The reverse is true this year. Looking at low mileage 2023 BEVs selling used for tens of thousands less than a few months ago is going to be a barrier to entry.

 

[Ghost Ryder]

And yet both are legit complaints.

Markets (in general) like stable pricing not significant volatility.

Big unpredictable swings create chaos and people are less likely to purchase.

I guarantee more than a few people purchased a BEV in the last couple years partially because they felt good about strong resale values.

The reverse is true this year. Looking at low mileage 2023 BEVs selling used for tens of thousands less than a few months ago is going to be a barrier to entry.

There has always been price adjustments in auto sales. It was just masked with dealer holdbacks, rebates, incentives. Tesla just pulled back the curtains and stopped all the games. The list the price that you would pay without all the dealer's hidden fee.

It's rather refreshing.

Don't forget that before the price reduction this year, there were massive price increased in 2021 and 2022. The price just regressed to the mean/historical norm.

 

[Mach1E]

There has always been price adjustments in auto sales. It was just masked with dealer holdbacks, rebates, incentives. Tesla just pulled back the curtains and stopped all the games. The list the price that you would pay without all the dealer's hidden fee.

It's rather refreshing.

Don't forget that before the price reduction this year, there were massive price increased in 2021 and 2022. The price just regressed to the mean/historical norm.

Again, it’s not a a price adjustment, it’s a crash when you’re lowering prices $50,000 (36%) in a few months.

I don’t think that any manufacturer in history has done that.

You can’t pretend this is just business as usual.

 

[Ghost Ryder]

I said only so far. Read. Comprehend. We’re not there yet obviously. Only so far to drop though.

From what industry expert say, Tesla still has a healthy profit margin for every car sold. And their production line is only getting more efficient every day. Rumor has it that soon, they will be able to stamp out the base of the car in one shot. Front, mid, and rear portion. OEMs have a long ways to go before they can catch up to Tesla's factory efficiency.

 

[Ghost Ryder]

Again, it’s not a a price adjustment, it’s a crash when you’re lowering prices $50,000 (36%) in a few months.

I don’t think that any manufacturer in history has done that.

You can’t pretend this is just business as usual.

Than what was it when you raised prices by $50k in a year?

https://leonwei.com/tesla-car-historical-prices-analysis-fe0968b7dffb

https://miro.medium.com/v2/resize:fit:720/0*yBi0WWwW6MO4wsDl

Look at the graph. Tesla just adjusting prices down to historical norms. The last two years of price spikes are not normal.

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