Tesla Slashes Prices

[HutchRed]

No Android Auto is a deal-killer for me to even consider a Tesla, regardless of price. It's free and the one thing I use most -- paying a subscription fee to get all the navigation features, that's for suckers.

I thought it would be awful but Tesla's UI is better. The subscription piece is dumb, I agree but even still. it's $120 a year. Non issue.

I am a huge fan of AA, too

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[KevinS]

If it all hits the fan, it's far easier for Ford to idle the Mexico factory than for Tesla to idle theirs. EVs are a fraction of Ford's business, and that diversification isn't a bad thing necessarily.

 

[HutchRed]

If it all hits the fan, it's far easier for Ford to idle the Mexico factory than for Tesla to idle theirs. EVs are a fraction of Ford's business, and that diversification isn't a bad thing necessarily.

What Ford does next is going to be extremely interesting. That's for sure.

 

[superdave80]

Or because the model Y is a direct competitor to the MME and this what the forum is about.

What model is/isn't a direct competitor (the Model 3 is closer in range/performance/price than the Model Y), has no bearing on a discussion about whether or not Tesla is having an inventory problem.

Imagine I grouped up the 10k+ f150’s sitting on lots right now it wouldn’t make much sense.

Make much sense for...? I don't get your point. Tesla ONLY sells EVs. If you want to include ICE F-150s when talking about how well Ford is selling EVs, that would be dumb. If you want to talk about how well Ford is selling cars in general, it would make sense.

But even with your graph the peak shows ~1700 cars in q4…. They sold over 225k lol.

Sales and inventory are two separate things. If they produce 200k and sell 200k, everything is peachy. If they produce 300k thinking they will sell 300k, but can only sell 200k, they are in trouble. Same number of sales, but a very different financial outcome.

Look I get it Tesla is an easy company to hate on but at least have some logic behind it

I don't 'hate' Tesla. Just because I'm not shaking the pom-poms and cheering them on doesn't mean I hate them or want them to do poorly. And I've laid out my logic (Tesla inventory was climbing sharply before the price cuts). Numbers don't lie, even if you don't like them.

 

[roamtheworld]

I don't 'hate' Tesla. Just because I'm not shaking the pom-poms and cheering them on doesn't mean I hate them or want them to do poorly. And I've laid out my logic (Tesla inventory was climbing sharply before the price cuts). Numbers don't lie, even if you don't like them.

They had zero tax rebates last year so Ford and others had the advantage. Once the IRA was approved and people found out near the end of the year it was coming most people waited to see what was going to happen so at least in the US sales slowed.
They dropped the price in December to clear out some inventory just like during normal car-selling season with most domestic brands (remember those days back in 2019 with $10K on the table?) and cleared out some inventory then dropped the hammer in January to get below the IRS published numbers.
Domestic auto companies have for years overproduced near the end of the year and offer incentives and every one said to wait until the end of the year or January to buy a new car. I've done this for 15+ years.
This is not rocket science people it's the car business

 

[EVS]

The visible Tesla inventory is just the tip of the iceberg. Doing a math on their quarterly production vs. sales reveals a way bigger inventory number. Drawing any conclusion by observing this tip isn't that useful. It was expected that some folks on the sidelines will dive in with this sudden price normalization.

Tesla is extremely secretive about hiding the excess inventory so the market doesn't get a whiff of their inventory problem. Understanble; need to keep the infinite growth story alive for the stock price. What do you think the fleet sales to Hertz were? It's well known that if you go into a Tesla store, they find you new inventory cars that are not listed anywhere.

The guy who started ev-cpo.com and started listing the hidden Tesla inventory with some script got a lot of pushback from Tesla. I think the pages got blocked eventually.

 

[MisterSofa]

I wonder why you only show Model Y inventory. Just kidding, I know exactly why:

Because if you REALLY wanted to show how great Tesla is doing, you would show ALL of their inventory. Their inventory has been slowly creeping up all the last several months, and the only thing that kept it from spiraling out of control was large price cuts. I don't think Tesla is doing 'bad', but you only cut prices when you can't sell at your current price. Their market ($50k+ vehicles) might be saturated.
Here is another data point. While driving in Marin County (north of San Francisco), I saw a large parking lot at a dealership packed full of Teslas.
Here is a street view from back in July (view from frontage road)

And one from September (which is how it looked when I passed by yesterday, view from freeway):

Nothing wrong with being able to deliver a car within 2 months. Ford is 6 months out.

 

[4sallypat]

Nothing wrong with being able to deliver a car within 2 months. Ford is 6 months out.

Um my MME is 9 months out.

'22 converted to '23 still not here.

But my Lightning was quicker - 3 months!

 

[superdave80]

Nothing wrong with being able to deliver a car within 2 months. Ford is 6 months out.

Two months? Go pick out the Tesla you want from the lot I showed you. No need to wait...

 

[zephiyr]

Just checked Tesla Y inventory (ready for pickup/delivery today) and all the under $55K are sold out. Only the ones over $55K are available.

How long does it take to order a Y under $55K??

A week. I ordered 1/13 and it is arriving 1/20. MY LR under $55k.

 

[RedStallion]

If it all hits the fan, it's far easier for Ford to idle the Mexico factory than for Tesla to idle theirs. EVs are a fraction of Ford's business, and that diversification isn't a bad thing necessarily.

What I heard from the analysts most manufacturers will cut production in 2023-2024 to avoid price reduction. Tesla can't do that, they sell investors growth story. I suspect Tesla will keep adjusting prices up or down depending on demand. They would rather take a hit in profits than in deliveries.

 

[tdmeng]

The last two growth stories Tesla will sell is the cyber truck and model 2. It’s in their best interest to hype and sell the potential than the actual product. The halo roadster car will keep the brand recognition.

 

[nvabill]

You do not know me. I have no desire to be associated with a narcissistic sociopath like Musk .

Ok then, no free car for you, can I have yours when they offer it please? ?

 

[hotfartz]

They had zero tax rebates last year so Ford and others had the advantage. Once the IRA was approved and people found out near the end of the year it was coming most people waited to see what was going to happen so at least in the US sales slowed.

Would be hard to overstate the importance of tax rebates.

Before I bought an MME, I was pricing out a Hellcat. $7,500 is what it cost to get me to turn my attention to an EV.

Re: Model Y pricing, it didn't qualify as an SUV under the IRA because it didn't weigh enough to meet the definition. While it's clear the price cuts are designed to come in right under the line to qualify, I'm not convinced the cost goes back up in March. The price for the car is about what it was in 2020, feels more like the price has reverted to mean.

 

[roamtheworld]

Would be hard to overstate the importance of tax rebates.

Before I bought an MME, I was pricing out a Hellcat. $7,500 is what it cost to get me to turn my attention to an EV.

Re: Model Y pricing, it didn't qualify as an SUV under the IRA because it didn't weigh enough to meet the definition. While it's clear the price cuts are designed to come in right under the line to qualify, I'm not convinced the cost goes back up in March. The price for the car is about what it was in 2020, feels more like the price has reverted to mean.

Agreed on both counts
We bought our MME in May 2022 because of the rebate over the MY (Also looks) and I think the pricing will stay but rebate might change because of battery contents(China).

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