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Tesla Drops Prices... Will Ford?

silverelan

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I just saw this and I agree. I am a GT reservation holder, but for me the sweet spot would have been the LR AWD. The ER AWD MME was just a little on the slower side for me, so that made me go for a GT. This price drop actually makes the Y cheaper, even after tax credit, and more powerful than the MME equivalent (LR AWD vs ER AWD).

Theoretically, the GT will be cheaper than the Performance Y after tax credit. However, we haven’t seen how much the performance package will cost and whether Ford will nickel and dime us with option packages (glass roof, 360 camera, etc.). Additionally, I imagine the range will be better on the Y. I know that Tesla overstates but recent tests show the LR AWD Y getting 276 miles of range driving 70 mph in 100 degree weather (speed and temp can negatively impact range). This is higher than the MME’s target EPA range of 270 for the same trim (most likely based on ideal driving conditions

One other consideration is that Tesla’s battery day is 09/22. I’ve been told that sometimes tech announced at these events makes it into current models shortly after. Could we see upgraded range for the Y this fall/winter?

From a design perspective, the MME wins for me. I also like the dealer network for support. Additionally, Ford has Apple CarPlay. However, Tesla’s drop in price, better performance in the mid range trim, better range (with the possibility of higher range in the near future) could steal some MME reservation holders away (including me).

For me, the big things Tesla would need to get right would be better quality control (seems to happen the longer models are produced), offer a lease option with the Y, and include Apple CarPlay or a better way to play/control Apple Music from the main screen. Will these happen? I’m not sure. Are they reasonably doable? For sure.

Ford could also surprise us with a price drop and better than expected performance/range numbers too.
The Tesla Model Y with a $2,000 performance upgrade to drop the acceleration into the low 4 seconds makes the LR Y dual motor an intriguing option. That would give you MME GT specs plus the glass roof and most of the tech features.

I really do not like the exterior aesthetics of the model Y and the interior of the Tesla just doesn't do it for me. That kind of discount helps some buyers like us get over it though.

It probably behooves us to wait until the Premium AWD ER comes out as that will likely give us an idea of the true performance capabilities such as range and acceleration plus of course charging speed.
 

JCHLi

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I doubt it as they didn't mention a price drop for the Model Why.

A price war will likely be coming, but I highly doubt Tesla will be the one starting it.
 

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I doubt it as they didn't mention a price drop for the Model Why.

A price war will likely be coming, but I highly doubt Tesla will be the one starting it.
Tesla just started it :) Hopefully Ford drops as well now that MME is more even after 7500 tax rebate (that you have to wait up to a year for).
 

JCHLi

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Tesla just started it :) Hopefully Ford drops as well now that MME is more even after 7500 tax rebate (that you have to wait up to a year for).
It would be interesting if this was a price war. However Ford has the luxury of making money as a price taker right now and Tesla can't afford a price war. As other options come up market and try for the same market share, manufacturers with a little more cash and staying power will eventually be willing to lose a little to clear out competition.
 

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Tesla just started it :) Hopefully Ford drops as well now that MME is more even after 7500 tax rebate (that you have to wait up to a year for).
Actually, you don't have to wait a year for the Fed $7,500 Tax Credit --- just change your Fed Tax With Holding so you will owe $7,500 at the end of the 2020 Tax Year and the Fed Tax Credit will cover it and you will already have it in your pocket.

Never send more money to the IRS than you will owe.
 

dbsb3233

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My guess is that Ford will have enough demand for 2021 MMEs to sell all 50,000 at the current price, thus has no reason to lower it. I think it has extra appeal beyond what the Model Y offers. Tesla has a loyal fan base, and that will power a lot of Y sales. But I think Ford has built the Mach-e to draw mainstream ICE drivers in with a vehicle that's just more appealing on many angles.
 

Badger_Prof

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Actually, you don't have to wait a year for the Fed $7,500 Tax Credit --- just change your Fed Tax With Holding so you will owe $7,500 at the end of the 2020 Tax Year and the Fed Tax Credit will cover it and you will already have it in your pocket.

Never send more money to the IRS than you will owe.
Eligibility for the $7500 tax credit has nothing to do with whether you will receive a refund or will owe payment at tax time. It only requires your tax liability to be big enough to take the credit. Tax liability is the amount of tax you pay whether from withholding, estimated payments, or payment with return. If your tax liability is $7500 or more, you are eligible for the full credit.
 

SD_Solar

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Eligibility for the $7500 tax credit has nothing to do with whether you will receive a refund or will owe payment at tax time. It only requires your tax liability to be big enough to take the credit. Tax liability is the amount of tax you pay whether from withholding, estimated payments, or payment with return. If your tax liability is $7500 or more, you are eligible for the full credit.
Of Course it's your Total Fed Tax Liability in the year you take delivery of the vehicle that determines your qualification for the $7,500 Tax Credit. He stated you have to wait up to a year wait or sometime the following year to collect the benefit and I gave him an option to collect the benefit in 2020.
I will be doing this myself in 2020 --- I am old enough I have to take required distributions each year from my IRA's and 401K's. When my First Edition is delivered I will withdraw $90,000 and normally would have with holding of about 1/3 or $30,000. This year I will have $30,000 - $7,500 with held on the distribution and will effectively collected my Tax Credit at that time.
 

timbop

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My guess is that Ford will have enough demand for 2021 MMEs to sell all 50,000 at the current price, thus has no reason to lower it. I think it has extra appeal beyond what the Model Y offers. Tesla has a loyal fan base, and that will power a lot of Y sales. But I think Ford has built the Mach-e to draw mainstream ICE drivers in with a vehicle that's just more appealing on many angles.
That is absolutely true - to a certain point. If the MME lease rates stay anemic, I for one will likely ask for my $500 back and put it towards a Model 3. I know most of you want an SUV, but I actually don't - I want an electric sports car. I'm willing to compromise on a sporty CUV and help Ford put a dent in Tesla's virtual monopoly, but they need to be more willing to take some of the potential depreciation of the MME instead of dumping it all on me as an early adopter.
 

JCHLi

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Of Course it's your Total Fed Tax Liability in the year you take delivery of the vehicle that determines your qualification for the $7,500 Tax Credit. He stated you have to wait up to a year wait or sometime the following year to collect the benefit and I gave him an option to collect the benefit in 2020.
I will be doing this myself in 2020 --- I am old enough I have to take required distributions each year from my IRA's and 401K's. When my First Edition is delivered I will withdraw $90,000 and normally would have with holding of about 1/3 or $30,000. This year I will have $30,000 - $7,500 with held on the distribution and will effectively collected my Tax Credit at that time.
Excellent idea. One option I considered is just doing a conversion to a Roth IRA in the amount such that I would get exactly a $7500 tax bill.
 

timbop

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Eligibility for the $7500 tax credit has nothing to do with whether you will receive a refund or will owe payment at tax time. It only requires your tax liability to be big enough to take the credit. Tax liability is the amount of tax you pay whether from withholding, estimated payments, or payment with return. If your tax liability is $7500 or more, you are eligible for the full credit.
You misunderstand - he is saying that one could decrease one's witholding from each paycheck (thus increasing take-home pay), so that by the end of the year one would have $7500 less withheld than the computed tax. That will then be nullified by the $7500 credit for buying a BEV, thus leading to a $0 amount owed when filing.
 
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I am going to cancel my premium ER RWD order and simply go for MY. The final of the two are almost the same now but MY has the advantage of SC , AP, better range, dual motor AWD, faster 0-60, and better efficiency. No mention that no wait for 7500 back. At the current price point of MY, to me MME doesn’t really have advantage at all..
 



 










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