Tesla Drops Prices... Will Ford?

[dbsb3233]

I'm buying the SR RWD car and this will be my only vehicle. Definitely a market for it.

Sorry for your loss, Tim.

Thank you. Lived a full life (to her 80's), which is all we can ask for. Feel kinda guilty making financial decisions to plan to spend parts of it so soon, but the Mach-e reservation was already in the works, and it's a reminder to live life to it's fullest when we have the resources to do so.

Sponsored

 

[mamejunkie]

Spec wise, Tesla Y definitely has the edge. The only 2 cons I can see is that questionable quality & the looks. So if you are willing to roll the dice & like the look of Model Y, that is probably the better buy. I doubt Ford will lower the price since there is so many reservation holder. But if they do, hope it applies to all that already converted to an order...will suck if they drop the price a few months into production. All the early adopters will look like idiots.

 

[macchiaz-o]

Spec wise, Tesla Y definitely has the edge.

Yes, depending on what specs are important to you, sure. I also care about stuff like Android Auto, accessibility of repairs and maintenance, and the driving experience. (We'll have to wait for auto journalist reviews for comparisons on that last one, though.)

The only 2 cons I can see is that questionable quality & the looks.

The quality issue is a fairly big "con" for me. To me, their product is still significantly overpriced.

I also take issue with Tesla's management ethos. Mostly with regards to employee safety, customer safety (mostly related to ADAS branding), financial practices, treatment of naysayers, and childish behavior from their CEO.

Musk would need to significantly change his own practices (unlikely), or Tesla would need to replace Musk (unlikely at this time) for me to consider buying their products.

In contrast, I continue to be impressed with Jim Hackett and the cast and crew who've been credited with leading various aspects related to the MME. I can certainly be proven wrong, but so far, this does not seem to be the same Ford from 5-10 years ago that delivered a known-defective DPS6 automated manual transmission in the Fiestas and Focii.

My order is refundable. I'm anxiously awaiting reviews from the journalists that I trust, and my own opportunity to test drive. If I don't go forward with the Mustang Mach-E, I'll either keep my current car until I see better, locally available alternatives, or maybe head to California to drive back with an Ioniq EV or Kona EV, which I'd rather not have to do. I'd also consider the Bolt, which although it is available locally, I find it rather hard to look at. I'd also consider plug-in hybrids, but we don't have too many too choose from of those, either, and I'd really like to be done with gasoline.

 

[Mach Daddy]

Spec wise, Tesla Y definitely has the edge. The only 2 cons I can see is that questionable quality & the looks. So if you are willing to roll the dice & like the look of Model Y, that is probably the better buy. I doubt Ford will lower the price since there is so many reservation holder. But if they do, hope it applies to all that already converted to an order...will suck if they drop the price a few months into production. All the early adopters will look like idiots.

But us early adapters will get the Federal Credit. I expect Ford to drop prices but not until the credit is exhausted, but not to drop prices by $7,500. So early adapters still come out ahead.

A RWD Select MME at $36,395 is a great deal, since it has the same specs as the now canceled lowest end MY (which they aimed to sell for $39k). The nearest priced MY is at $50k. It seems it is now Ford that is lacking competition.

I previously looked at the Volvo XC 40 Recharge but the lack of updates and seeing the Polestar 2 come in at a higher price than previously thought makes me think it will be priced above $50k, if it even makes it to the US. With 200 miles of range I don’t see how it can compete, but I am sure the looks are appealing to others.

 

[JCHLi]

Dropping the price so soon after release and cancelling a major option sounds like there is a definite lack of demand.

 

[Stickboy46]

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.

Just make sure you understand the risks here. If your delivery slides to 2021, make sure you still have the 7500 + any potential underpayment penalties to pay back with your taxes next year.

 

[JCHLi]

Just make sure you understand the risks here. If your delivery slides to 2021, make sure you still have the 7500 + any potential underpayment penalties to pay back with your taxes next year.

I'm not sure why you would have to worry about underpayment penalities. The last date for paying any estimated tax for 2020 is in January 2021, so you'll know if you didn't get your car in 2020 and can plan accordingly.

 

[Stickboy46]

I'm not sure why you would have to worry about underpayment penalities. The last date for paying any estimated tax for 2020 is in January 2021, so you'll know if you didn't get your car in 2020 and can plan accordingly.

Not everyone is tax knowledgeable. Just pointing that out to make sure that people understand there ARE risks associated with what was said. If people don't understand that and miss it and just pay it when they file their taxes in April, they could be in for a surprise.

 

[JCHLi]

Not everyone is tax knowledgeable. Just pointing that out to make sure that people understand there ARE risks associated with what was said. If people don't understand that and miss it and just pay it when they file their taxes in April, they could be in for a surprise.

Agreed, people should either know the rules themselves or have a knowledgeable professional to help them.

But I think it is important to understand, people have a lot of options when to comes to this tax credit besides just waiting.

 

[Stickboy46]

Agreed, people should either know the rules themselves or have a knowledgeable professional to help them.

But I think it is important to understand, people have a lot of options when to comes to this tax credit besides just waiting.

Agreed, the statement was just made like it was a no risk option that everyone should do and has been quoted a couple times in this thread as that.

 

[SD_Solar]

ust make sure you understand the risks here. If your delivery slides to 2021, make sure you still have the 7500 + any potential underpayment penalties to pay back with your taxes next year.

Of course you have to understand the rules on this. I will have until the end of Dec 2020 to make the withdrawal distribution for it to be Taxable 2020 Income.

If Ford doesn’t make the First Edition deliveries in 2020 (very unlikely) --- I will just wait and make the distribution in Jan 2021, making it 2021 Taxable Income.

 

[polzovotel]

Do you know how many EV cars Ford still has for $7500 credit before it reduced? As if my order goes into 2021, I may find myself getting lower credit... Also, not sure if local state credit (2500 for Texas) will be available in 2021...

 

[agoldman]

Spec wise, Tesla Y definitely has the edge. The only 2 cons I can see is that questionable quality & the looks.

All I have heard so far is how bad the quality control is on the Y. That was enough to put me off regardless of the bleh looks..

 

[eager2own]

Do you know how many EV cars Ford still has for $7500 credit before it reduced? As if my order goes into 2021, I may find myself getting lower credit... Also, not sure if local state credit (2500 for Texas) will be available in 2021...

There are other threads on this but TLDR version is that most of us expect the full federal credit to be in place for all of 2021 deliveries.

 

[SD_Solar]

All I have heard so far is how bad the quality control is on the Y. That was enough to put me off regardless of the bleh looks..

Yep, there is no lowered Tesla price that would interest me --- looks and a 600 mile round trip to the nearest Tesla service center make it a non-starter.

Their stock is going absolutely crazy today --- up to over $1,760 from a low of $211 in the last year. That is a Market Cap of $327B --- Ford is $24B about 7% of that.

Ford delivered worldwide 17.1 million trucks and cars in 2019.
Tesla delivered 367,500 in 2019.

Completely nuts!

Sponsored