Tesla Slashes Prices

[phil]

In the old days Ford would dump their cars to Hertz (for a while basically every car I ever rented from Hertz was brand new), since Tesla can only move to consumers, they are having a sale.

I'm also going to go out on a limb and say this will be over when inventories rebalance.

Who says Tesla can't dump a hundred thousand cars worth of stale inventory on Hertz, at bargain-basement fleet prices? Everything old is new again:

https://www.bloomberg.com/news/arti...eslas-in-car-rental-market-shake-up#xj4y7vzkg

I agree, when Tesla manages to improve demand for its cars, it will raise prices. That is, IF Tesla can improve demand - the market signals are not good, and bargain-basement pricing may be the new normal for Tesla as the EV market matures.

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[zephiyr]

We just bought a MY LR. It will replace our ICE mustang so we have a second family-capable car alongside the MME. Prior to the price drop we were considering another Ford BEV (Lightning) or PHEV but this deal is a no-brainer.

 

[jay1122]

For fellow NJ people. I just want to point out, the base Model 3 currently qualifies for 7.5K Fed tax, 4K state rebate, Tax free. You can take a model 3 home for as low as 34K+Registration fee. What can you get for 34K OTD, a loaded Honda civic cost around the same after tax. Jeez.

Wish I am in the market for a new car now. Too bad the MMR resale value imploded.

 

[azerik]

This is also going to kill the use car prices for the MME.
Like it or not, people are going to cross shop when looking at used cars. If a used tesla is significantly less than the MME, than it's going to sale before the MME.

I cross shopped. Drove 2 LR AWD m3's before driving my owner MME. Gimmic abound and a ride worse than the MME and worse than my 10 yr old Focus Electric. The $11k more I spent on the MME I was happy to get ER and AWD Prem. I tried and tried to buy '23 MME SR RWD but at that time couldn't justify the M3 or the MME until driven. That said if the dealer had me drive on actual roads and not the nice sections of the 202 I might have done more research before putting the money down.
I've cross shopped the m3 for years. bought one back in '19 that was returned the same day because my wife expected more for the money (which was significantly cheaper than yesterdays price).

Reality is: The reason the MME resale value takes a dump (if it does, or if it already did) is because I bought one. It's a gift. I'm really really freakin good at it. Anyone want to buy a Can-AM in Phoenix??

 

[new to mach-e]

I for one, most likely won't take delivery of my '23 Select AWD STANDRD RANGE sticker of almost $51K minus rebate when a Model Y LONG RANGE is ~$55K minus rebate... not that I like the MY styling over the Mach-e...

 

[phil]

At this point Ford needs to do whatever they can to

• Make the Mach E an SUV again
• Get more Mach E and Lightning prices just under the thresholds for the tax credits

Better yet, offer a good lease program, with full federal tax credit.

 

[Ghost Ryder]

If you lease the Tesla, will Tesla include the Tax credit in the lease price?

 

[tdmeng]

If you lease the Tesla, will Tesla include the Tax credit in the lease price?

It doesn't look like it from playing with the configurator

 

[azerik]

When I leased my first Focus electric in 2012 the dealer gave me the $7500 off. (But that sticker was $42k.. for a Focus, with a 65 mile range.) I've now driven two of them to 80k each on the clock but bought the second one for 1/3 the residual on the lease.

'24 will be a game changer year if they take it off at the dealer. But I expect '25 they'll reverse taking it off at the dealer as I'm sure there will be plenty of lying about incomes and ADM/options stacking to the point the dealer is the only one making out.

 

[phil]

VW was founded by the Nazi party in 1937 - you make it sound like they had a choice. VW and the Nazi Party were one and the same. In fact the Nazi's had a scheme for German citizens to buy a Beatle using a sort of downpayment plan. You'd go the bank each month, pay some money, and the bank would add a stamp to your purchase card. The idea was when the card was full, you'd get you car. Except nobody did, the Nazis simply stole money from their own people to pay for their war.

Ein Volk, Ein Reich, Ein Wagen!

 

[Sharkey]

the 7 seat Model Y is eligible up to 80k, the Model Y Performance is eligible for none unless used, and the Model Y Long Range/Austin Build is eligible up to 55k.

Could buy the 7 seat Long Range with the factory rims for more range or 20” inductions, paint upgrade, trailer hitch, performance upgrade OTA update, FSD and still be eligible for tax credit. The Austin Build/5 seat Long Range models cannot be loaded up and still qualify.

FYI, software updates like FSD don't count in the 55K limit.

 

[phil]

Tesla...if they wanted to reduce inventory, they would just decrease production.

That's exactly what they SHOULD do. However, Tesla stock is a giant house of cards, built on a story of hypergrowth forever. If they decrease production and acknowledge that Tesla is on the road to becoming just another low-margin automaker, the stock will crash hard. Even harder than it already has.

Mr. Musk prefers to maintain sales and cut margins, so stockholders can continue to dream of unlimited forever growth.

 

[phil]

If demand is so bad, why is Tesla expanding GigaTexas?

Mostly so that they can close Fremont.

 

[Ghost Ryder]

Mostly so that they can close Fremont.

They do need to close Fremont. It's old, and outdated. Not to mention, the cost of operating in California as opposed to Tx.

 

[Logal727]

I just took a look over at the Ioniq 5 subreddit and there are a lot of folks bailing on their orders as well. This is an interesting play, curious to see how this goes for everyone. I'm not sure if quality can keep up with demand when you're still building in inflatable tents, but we'll see!

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