Tesla Slashes Prices

[awp0]

If I'm being honest, I don't really understand the cheerleading for "the brand you own". I enjoy that the MME is pretty uncommon around here and I'm kind of happy that it'll probably stay that way for a while. And I'm not worried about Ford going out of business!

FWIW, I 'm also thankful for Ford Options right now.

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[kkgg]

did Tesla just killed the competition ?
Competitors have to lower the price no matter what. I will wait for RIVIAN price cut

 

[Ghost Ryder]

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.

Tesla also raised their prices drastically over the past year.

I bought a MY LR in 2020 for 54k, then over the next 2 years, it went up to 63k, now its back down to 54k. So all good. Tesla is just taking the ADM out. Same thing is happening or will happen with the MME. For a while there was a 5-10k dealer mark up, but those are disappearing fast.

You have to look at the total out the door price. What do I care if I pay 70k to the manufacture, or 60K to the manufacture and 10k to the dealer. Same difference to me.

 

[jay1122]

Ah bummer, trade in value is terrible for my MME. Would've switched to M3P if the trade in can make it even to net purchase price.

 

[GTBuzz]

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.

There is zero evidence the demand drop is specific to Tesla. Tesla just has the flexibility to react to it first since they aren't constrained by a legacy of model years, MSRP's, and dealership networks.

 

[WSoxFan22]

GM, Ford, Volvo and VW all have EV plants in North America and can leverage that to mitigate the disaster that Tesla just laid on them. Hyundai, Kia, Toyota, and Subaru? They’re so hosed.

A Kia Niro EV goes for $42k and while nice, it’s technologically inferior to the MME let alone a Model Y LR that now costs $46k. I don’t see how Kia sells any Niro EVs in the USA at that price.

Tesla is in trouble. They were selling a middling build car at a premium price because the competition in the market wasn't great.

With legacy makers getting in and presenting better build and driving cars, all Tesla had was the software edge. Tesla buyers paying a premium for an interior that breaks down in 5-6 years and etc was slumping the brand once better options came out.

Pair that with the fact that the Model Y is so damn ugly, and I don't think this kills other makers. Tesla has been exposed as other companies have gotten involved. They HAD to drop prices because their demand was plummeting. How much will they recoup with the price drop? I'm not sure, but I know they also pissed off a lot of people who paid over those prices by a lot just a couple months ago.

I would never buy a Tesla.

 

[awp0]

With respect to looks, I also think Tesla has acquired “Porsche” status, in that Porsche vehicles look awesome, but they basically don’t change. Subtle tweaks to a great product is all Porsche, and Tesla seems to need. The Tesla look is timeless at this point. Kids ogle and point at the cars in fascination. I would put the love/hate camp at 85/15. For every 4-5 people who like the looks, 1 will dislike it.

And, the software keeps an older Tesla feeling quite fresh. Meanwhile we're still debating whether a MME purchased just a few months ago will ever receive Bluecruise 1.2

 

[Ghost Ryder]

Tesla can slash their prices because they have one of the highest per vehicle profit margins in the industry. Ford on the other hand was breaking even on each MME sold.

 

[Blue highway]

Tesla has a huge margin advantage over other EV makers... they can bring prices down even more if they want to.

I like the MME build quality and design better, but the ongoing software dumpster fire that is Ford, makes a model Y really tempting.

 

[dmastro]

You can read whatever you like. I have both cars and I gets much lower range in my premium ER than my Tesla model Y performance in 20-40F temperature.

Back in summer they were about same.

I read a report this week (not sure if anyone has posted to the forums yet) about a real-world test in cold conditions. The results of the testing showed MME loses about 30% of range in cold, whereas Y (since this has become an MME/Y thread) loses about 15%, primarily due to MME's lack of a heat pump.

 

[Pioneer74]

FWIW, I 'm also thankful for Ford Options right now.

This x2

 

[KevinS]

did Tesla just killed the competition ?
Competitors have to lower the price no matter what. I will wait for RIVIAN price cut

You'll be more likely to see the Rivian bankruptcy sale.

 

[Pushrods&Capacitors]

There is zero evidence the demand drop is specific to Tesla. Tesla just has the flexibility to react to it first since they aren't constrained by a legacy of model years, MSRP's, and dealership networks.

Well, more than one analyst tracked the precipitous Tesla demand and share drop to just after Elon’s Twitter craziness. And these weren’t even Tesla shorters…..

 

[Nemy]

Tesla also raised their prices drastically over the past year.

I bought a MY LR in 2020 for 54k, then over the next 2 years, it went up to 63k, now its back down to 54k. So all good. Tesla is just taking the ADM out. Same thing is happening or will happen with the MME. For a while there was a 5-10k dealer mark up, but those are disappearing fast.

You have to look at the total out the door price. What do I care if I pay 70k to the manufacture, or 60K to the manufacture and 10k to the dealer. Same difference to me.

Don't forget the $7500 tax credit. This is the cheapest Tesla Ys have ever been (though can't remember the discontinued SR msrp). Model 3s were actually $35k at one point so its still up a bit from their all time low.

 

[GTBuzz]

Well, more than one analyst tracked the precipitous Tesla demand and share drop to just after Elon’s Twitter craziness. And these weren’t even Tesla shorters…..

Share drop I can see given the way the Tesla stock is treated like a casino. Can you share the analysis for Tesla demand you are referring to?

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