Tesla Slashes Prices

[A-A-Ron]

There's a lot of irrational partisan Tesla hate on the internet,

Yes, panel gaps, dust under the paint, crap plastic, hit or miss service outside large metropolitans, outlandish range claims, years long delays in releasing promised products, and the highest rate of self-driving fatalities of all EVs is totally irrational hate. Or is it the desire to not support the world's richest d-bag that's irrational and partisan?

Tesla has its pros and cons, they do plenty of things really well, but telling me the cons are just an irrational hatred of Tesla is the real irrational comment here.

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[BluePony]

I don't think Ford will cut prices like Tesla. The OGs car manufactures don't really drop prices this drastically. They offer rebates and special financing. With Tesla's price cut, think about how it effects all the resale value of all the people who purchased a Model 3/Y in the last 2 years. Overnight their resale/trade-in value dropped dramatically. I hope Ford doesnt cut prices, it effects all of us who have a Mach-E already. What they can do is release a new trim that will meet the MSRP limits instead.

Tesla is the least consumer friendly car company. They are probably finding ways to increase weight or ride height so they can be classified as an SUV and have the $80K MSRP limit and then raise prices to increase their margins. They are only discounting to clear out inventory that is rapidly growing.

This "deal" or discount could be short lived. If you dont pick one from inventory, and order one now. With the build time + shipping you might not get the Tesla before March 1st. Then what? Maybe $7500 becomes $3750 at that point.

 

[awp0]

Let’s all just acknowledge reality, massive price cuts like this don’t occur because of someone’s genius business acumen. They happen when companies are in duress.

I would say they happen because Tesla has the highest margins in the industry, and they can drop prices like this and still make money. Unlike any other EV manufacturer. Yes, Tesla has inventory, which we could call "duress", or we could call it another important sales advantage. Wait 6+ months for your MME or buy a comparable Tesla for $20k less in a much shorter time period.

 

[RickMachE]

Looks are subjective. But I don't think a lot of people think that Teslas are "butt ugly." They are generic, but not offensive. Some consider the Model 3 and S as handsome and understated. If they were really ugly, they wouldn't sale as well as they have been. They have sold over 1 million samples worldwide.

As far as Musk antics, other that the fringe left, most people could care less, or unaware of his "antics." Most people do not follow politics.

When it comes down to it, most people have convictions, but those go out the window when face against the harsh reality of higher cost. People vote with their wallets. Pay 20k more for a comparable vehicle because you don't like the CEO? I would wager that 99% of people are not.

Tesla's stock price is down, not because of any "fringe" anything, but because of Musk's antics, coupled with China downturn.

 

[Pushrods&Capacitors]

I would say they happen because Tesla has the highest margins in the industry, and they can drop prices like this and still make money. Unlike any other EV manufacturer. Yes, Tesla has inventory, which we could call "duress", or we could call it another important sales advantage. Wait 6+ months for your MME or buy a comparable Tesla for $20k less in a much shorter time period.

Wait, they had large price increases just last year citing run away materials cost increases and the need to cover costs and now that’s all vanished and they’re so profitable on a per unit basis that 8-20% discounts allow profits to continue? Holy smoke.

 

[GreaseMonkey]

Ford congratulating Tesla on its price cuts. Heartwarming to see such friendly rivalry between competitors!

He’s delusional. Typical corporate bureaucrat. I’m really dismayed to see such an arrogant response, especially given how proud I am of the nice job Ford did on this vehicle…and as a former SE Michigan resident, I will always root for the home team. Get it together, Ford!

 

[GTBuzz]

Tesla's stock price is down, not because of any "fringe" anything, but because of Musk's antics, coupled with China downturn.

Why is Ford stock down almost 50% in the last year?

 

[Pushrods&Capacitors]

No...they happen because of supply and demand. When Ford responds in kind, will that mean they're in duress too?

But industry car demand is still crazy. So what demand drop is so specific that Tesla drops prices 20% on best sellers? Oh yeah, Elon and his batshit crazy Twitter purchase/antics. Self-inflicted. Of course Ford et al will respond, but it won’t be 20% drops.

 

[Ghost Ryder]

Well, you're not the one that made the claim, but - that study is BRAND LOYALTY. Speaks nothing of the general public. It's how loyal is a Tesla buyer to Tesla.

Tesla is the most preferable brand for prospective EV buyers (teslarati.com)

Kelly blue book survey.

 

[awp0]

Wait, they had large price increases just last year citing run away materials cost increases and the need to cover costs and now that’s all vanished and they’re so profitable on a per unit basis that 8-20% discounts allow profits to continue? Holy smoke.

Correct.

 

[locks66]

Wow. So now a Y LR with tax credit is under $46k? I’m not a big Tesla guy, but that seems like a pretty good deal.

This. I honestly don't love the Tesla look. My wife and I got screwed by the tax credit change 2 weeks before her id4 showed up.

But at this price. I'd actually consider one. That's a value with the tax crdit

 

[Nemy]

They're clearly willing to take the hit if it means they can keep their factories going with sufficient volume.

Ya they needed to create the demand to match their high output. Something Ford will have to do once production bumps up and stockpiling occurs. Ford would also have to do drastic cuts though to get access to the credit and I think Tesla is planning on at least a 6 month to a year headstart. Master class move. It all does come back to brand loyalty; most people stick with the brand that they know - that's why conquest sales are so important.

 

[RobbertPatrison]

The price drop in Europe is even more significant. In Holland a dual motor Model Y LR is now 54K including tax (so $43K before tax), while the comparable Mach-e AWD is 69K. Without a price drop Ford's MME sales will abruptly grind to a halt world-wide.

I am happy to drive Musk-free, but the price difference would be too significant to stick to principles if I would be in the market now.

 

[locks66]

I got curious of what I could do with a trade in of my car. They would give me 6k more than I owe. However, I'd be giving up performance to get a model y lr which feels like a big sacrifice. While yes I've got a 5 second cap. The handling would be hard to go back on.

That or I'd have to consider a model 3 performance but I love the suv space too much. Plus giving up blue cruise which is showing to be a better autopilot and doesn't require my hands

 

[Ghost Ryder]

Yes, panel gaps, dust under the paint, crap plastic, hit or miss service outside large metropolitans, outlandish range claims, years long delays in releasing promised products, and the highest rate of self-driving fatalities of all EVs is totally irrational hate. Or is it the desire to not support the world's richest d-bag that's irrational and partisan?

Tesla has its pros and cons, they do plenty of things really well, but telling me the cons are just an irrational hatred of Tesla is the real irrational comment here.

This is the irrational part.

When people say that they wouldn't take a tesla even when given to them for free, that is irrational hyperbole. That's the partisan politics. I'm talking about.

You think the CEO of other car companies are nice and care about you or their workers? A lot of car parts are sourced from third world countries where they abuse their workers. But you're okay with that. You're mad at Tesla because Elon is more transparent, and you don't agree with his politics.

As far as range claims, those are based on EPA testing cycle testing. Blame the EPA.

What does delay in releasing promise have to do with buying what's available today? I've been waiting for mazda to release their next rx7/rotary engine car for 2 decades now. They keep promising and teasing, but then nothing. It doesn't prevent me from buying their current products though.

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