Tesla cuts price of Model 3 & Model Y again!

[Ev Blau]

If his goal with drive the competition out of the market, why open up the supercharger network?

I think Tesla's pricing philosophy is to sell as many cars as they can build. They seem to be on a straight, aggressive supply/demand pricing. If there extra supply, lower prices, too much demand, raise prices. Competition be damned.

Plus we don't have to worry about other OEMs stopping EV production because the gov't is forcing them to make them.

Revenue stream. Musk is “gambling” that ICE vehicles are on their way to passenger pigeon status - extinction. EV’s , of any model, will need his chargers in the future. The man is a business genius.

Sponsored

 

[Ghost Ryder]

I do wonder if DCFC will ever be profitable. Unlike ICE car, we can't refuel at home, but with EVs, I suspect that eventually >90% of all recharging will be done at home.

 

[mkhuffman]

I do wonder if DCFC will ever be profitable. Unlike ICE car, we can't refuel at home, but with EVs, I suspect that eventually >90% of all recharging will be done at home.

Charging at home is a problem for people who live in a multi-family building and share a parking area/garage. At least for now. But for those of us in a single family home, that is exactly what happens. And it is one of the best things about owning a BEV.

 

[Ghost Ryder]

Charging at home is a problem for people who live in a multi-family building and share a parking area/garage. At least for now. But for those of us in a single family home, that is exactly what happens. And it is one of the best things about owning a BEV.

That is a problem for now. But Show easily be corrected as EVs become more mainstream. it's a relatively cheap fix.

It's like indoor plumbing. We take it for granted, but it wasn't too long ago that outhouses were the norm.

 

[Trick.Mach-E]

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

Most people do not care about strong resale values other than flippers. You can put everyone in to 3 categories...

(1) Those who only care about the monthly payment.
(2) Those who drive the car until the wheels fall off knowing they squeezed every ounce of value out of the car.
(3) Those who can afford buy any car they want at anytime and then get rid of it when they see something else that they want.

Tesla owners are not fuming. Owning a Tesla is a statement for the majority of Tesla owners. And they too fall in to the 3 categories above.

 

[kerserker]

https://mashable.com/article/tesla-model-3-model-y-price-cuts

In other news, Elon single handedly tanks the resale value of every BEV while giving the middle finger to anyone who bought a Tesla in the last few years.

Did he get marketing lessons from his crack dealer? Give people a free taste and hope they come back for more?

A silly statement/conclusion. They are introducing a redesign for 2024 model an want to reduce inventory...LIKE EVERY OTHER CAR MAKER.

 

[AliRafiee]

If acquisition and resale values both decline then it’s a wash. Now, the price drops affecting previous Tesla buyers is another matter.

Not if you bought a used M3 one day before the cuts and try to sell the day after the price cut.

Before the price cut a used one would go for $50K+ and the next day all used car dealers had to drop their price by $10-15K and take a loss.

 

[Mach1E]

Most people do not care about strong resale values other than flippers. You can put everyone in to 3 categories...

(1) Those who only care about the monthly payment.
(2) Those who drive the car until the wheels fall off knowing they squeezed every ounce of value out of the car.
(3) Those who can afford buy any car they want at anytime and then get rid of it when they see something else that they want.

Tesla owners are not fuming. Owning a Tesla is a statement for the majority of Tesla owners. And they too fall in to the 3 categories above.

Who said “most?”

Just said “more than a few.”

The point is that resale value (and lack thereof) will affect future sales.

 

[Mach1E]

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.

Yes, not normal.

Price volatility isn’t a good thing.

 

[nvabill]

Not if you bought a used M3 one day before the cuts and try to sell the day after the price cut.

Before the price cut a used one would go for $50K+ and the next day all used car dealers had to drop their price by $10-15K and take a loss.

You are forgetting you can then replace the model 3 with a brand new one for a much lower acquisition cost, hence the wash. Very few people buy a car and then sell it without a replacement, if you do you are a flipper and I really don't care if you lose money!

 

[DevSecOps]

I do wonder if DCFC will ever be profitable. Unlike ICE car, we can't refuel at home, but with EVs, I suspect that eventually >90% of all recharging will be done at home.

Tesla reported 4.3B, with a B, in revenue last year in the segment that includes the Supercharger network. Most people estimate that out of the 4.3B, 3B was revenue from the Supercharger network. Most analysts also assume that Tesla will make an additional 3B alone from the deals signed with other mfgs by 2030 in addition to the growing revenue from their vehicle base.

For Tesla, yes, DCFC can be very profitable. For others, the verdict is still out.

 

[nvabill]

Who said “most?”

Just said “more than a few.”

The point is that resale value (and lack thereof) will affect future sales.

A question that comes to mind for me is, has the price drops by Tesla really affected the resale values of the Mach E? Putting it another way, has the Mach E or any other EV really ever been destined to have a good resale value no matter what Tesla did? I tend to believe RV's are going to have a rapid rate of depreciation, we only thought otherwise because of all the shortages during the pandemic.

 

[ARK]

I think Tesla’s production capacity has started to outpace the market’s appetite for EVs. I think the price cuts show that Tesla is not able to charge a huge premium with 6 month waiting lists anymore, so they’ve cut prices to juice demand.

I’m sure Tesla can adjust, but without those huge margins and explosive growth, I don’t see how Tesla’s share price makes sense, but it hasn’t really made any sense over the past three years.

 

[AliRafiee]

You are forgetting you can then replace the model 3 with a brand new one for a much lower acquisition cost, hence the wash. Very few people buy a car and then sell it without a replacement, if you do you are a flipper and I really don't care if you lose money!

I’m a used car dealer. I bought a used one and I want to sell it.

This is my livelihood and the way I feed my family.

 

[nvabill]

I’m a used car dealer. I bought a used one and I want to sell it.

This is my livelihood and the way I feed my family.

Sorry, no disrespect meant in my previous comment, I totally get the bad situation you guys are in with these price changes. I was totally looking at it from the standard consumer buying the vehicle to replace one sold.

Sponsored