Tesla Slashes Prices

[rcechinel]

Have you read this thread? Ford is in trouble if they don't drop prices a lot.

Correct! If you are running around with your ears covered yelling "this doesn't mean anything and the MME will not be affected at all", sorry to break it to you, but you've just acquired the Fan Boy Badge.

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[Maquis]

Btw, I think in my state (MA) this also brings the Model Y LR into range for another $3500 rebate. So if you're income is under the federal cap and you live in MA, I believe you might walk away with a Model Y LR for $42k. You'd have to have very strong convictions to pay $23k more for a comparable MME.

Similar here in Illinois. $4K rebate until the end of January or the money runs out, whichever comes first.

 

[rcechinel]

On Dec 29, IRS set a price ceiling at $55k. Musk responded: hold my beer.

Note: I despise the individual and am married to a never-Tesla woman too!

The ironic thing is that, when the new incentives wew announced, most people said all manufacturers would increase the price by $7.5k.

 

[RickMachE]

Ford as a company isn't in trouble but the MME certainly is. And the future is electric so the trouble is inevitable if they don't respond. With increased production and cancelled orders on the MME and Lightning, their EVs are going to be stockpiling with money just sitting in lots and wasted on bumping up production. The problem with that is our resale values will continue to plummet. Teslas other genius move was non-refundable deposits. That's money in the bank vs. canceled MME/Lightning orders.

Cancelled orders?

Here's what I think is happening.

1) People with RESERVATIONS for Lightnings aren't placing orders. No problem for Ford, there are tens of thousands, if not hundreds of thousands, of people that couldn't get on the reservation list that are waiting to order. Note - I am on the list, I got my opportunity to order, and I have not due to the price hikes and loss of tax credit.

2) Some people with orders coming in now, both Mach-E and Lightning, are choosing to not take delivery. This is a minority, because many people either don't know of the tax credit or don't understand that they may not qualify, so they're not choosing to not take delivery. Those orders will be quickly taken by the general public.

3) Mach-E production is up, and dealers are starting to have inventory on the lots. This is good for Ford, because now people can look at the vehicles, drive them, and then buy. Dealers can then order replacements. This will sustain the Mach-E business for some time, although the lack of a tax credit for many trims is going to be an issue.

4) I don't think either product line is going to "suffer" from cancelled orders for some time into the future.

 

[rcechinel]

I don't expect Ford to do anything since they can't afford the impact on profits.

That's why this is a brilliant move.

 

[Maquis]

Correct! If you are running around with your ears covered yelling "this doesn't mean anything and the MME will not be affected at all", sorry to break it to you, but you've just acquired the Fan Boy Badge.

This will surely affect the Mach-E, but to say “Ford is in trouble” (post you quoted) is pure hyperbole. Ford could stop making the MME, take a write-off, and go about it’s business.

 

[GTBuzz]

Auto stocks opening across the board down ~5%. This is trouble for Ford, GM, everyone. And this trouble has been brewing for months...Tesla was just the first to act on it.

 

[RickMachE]

There's a lot of irrational partisan Tesla hate on the internet, but the vast majority of people view Tesla as desirable. Many people desire a tesla, they just couldn't afford it. Now many more will be able to buy one.

Besides your opinion, can you cite any source that shows this as a fact? Like an unbiased survey?

I think this might have been true a few years ago, that SOME people viewed it as desirable. Not anywhere near a majority, because a majority of people don't consider EVs desirable at all. Now, Musk's antics have lowered desirability, as well as the stock price.

 

[GTBuzz]

This will surely affect the Mach-E, but to say “Ford is in trouble” (post you quoted) is pure hyperbole. Ford could stop making the MME, take a write-off, and go about it’s business.

Great strategy for when states implement bans on new sales of ICE vehicles!

 

[Pushrods&Capacitors]

That new price is crazy. I don't like tesla design, but M3P seems good value now. 3.1 Sec acceleration, 315 Range. I probably will order an M3P and take the credit. 7.5K tax credit, 2K NJ rebate, tax free. I need to see what my MME is worth in trade now.

Edmunds testing got 256 miles, but yes, it is quick. All other makers exceed their EPA range estimates, sometimes by huge margins. Edmunds calls out Tesla for not meeting any of their range estimates. This is just one example of the Tesla myth.

 

[roamtheworld]

I'll just drop this here for the Ford isn't in trouble camp.
https://fordauthority.com/2022/03/ford-quality-a-key-component-of-reorganization-plan/
“The cost of our quality, our warrant costs, are higher than our competition and we’re working diligently to bring that lower,” said Ford Blue president Kumar Galhotra. “That’s going to be substantial.”
Billions spent on quality issues isn't sustainable for Ford
Add that with prices cuts from the #1 EV maker in US by up to 20% ZERO probability that this doesn't impact sales of MME
Also Lightning orders have closed again and they have a massive backlog and ae only making a fraction of Lightnings now.

 

[dmastro]

If the bottom hasn’t fallen out of the used car market yet, I’m going to look at trading in for a Y. It was a better car before it cost less than the MME, now it’s an absolute no-brainer unless someone can’t get past their Elon hatred.

 

[Pushrods&Capacitors]

Mostly the user interface. Much easier to understand and find how to change things.

For me, the ride is much better in Tesla (it's performance trim), which the MME has way more body roll in turns.

MME blue cruise is way better than Tesla FSD though. I'll be missing it if I trade in MME for another Tesla. But Tesla has much higher range and much better charging network, so for long distance in winter we still take Tesla over MME.

What model has much higher range? EPA range or tested real world range?

https://www.edmunds.com/car-news/electric-car-range-and-consumption-epa-vs-edmunds.html

 

[Ming]

The ironic thing is that, when the new incentives wew announced, most people said all manufacturers would increase the price by $7.5k.

I thought they might increase some, not $7.5k but maybe 3-4k. I was totally wrong ?

 

[Mach1E]

The ironic thing is that, when the new incentives wew announced, most people said all manufacturers would increase the price by $7.5k.

When the tax credits came out, the manufacturers DID increase their prices by $7500 or more.

Heck, Tesla raised the price by $12000 on the Y when the bill first looked like it was going to pass.

Now that demand is way down, they’re cutting prices.

They seem to be overdoing it though (both the up and the down), but it definitely gets peoples attention.

Seems Musk cares more about revenue than profit again.

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