Tesla Slashes Prices

[sdevfan]

I've always been a fan of the Mach E and Ford. Ford is actually the first stock I invested in my Roth IRA over 15 years ago. Jim Farley seems like he's taking Ford in the right direction (as best possible). I have a real hard time, however, going to the Ford dealership and paying 15K over MSRP for a Mach E. It just doesn't sit right with me. I will not be taken advantage of knowingly. I ended up buying a Model Y Performance in October. The car is phenomenal to be honest. I personally like its stying though I know that is subjective. I love the acceleration, great range, dependable supercharger network, not having to pay for gas, simple elegance of the interior, and the regular updates which improve the vehicle instantaneously. We now have Apple Music so I can listen directly and there is no reason to use my phone via blue tooth. Any issues and there is a mobile service person who comes directly to my house.

Unfortunately I paid 71K for my car MY performance in October and it can now be purchased for 58K new. If it was available at the time, I would have just gotten the Long Range. So I am very bummed that I could today buy a Model Y that meets my needs for 53K and get a 7.5 K tax credit for a net cost of 45K. Basically I overpaid by over 26K which would have covered so many expenses for my wife and kids. It is not fair.

I agree that EM is a real jerk and he brings down the image of the company. Honestly, at this point, I think he is a net negative for Tesla and they would do better with a new CEO. I will not tell you TSLA is a good investment. But I will tell you Model Y is a great car and I would highly recommend it, especially at the current price. It's also made in America by hard working Americans. So if you can get over Musk, there is a lot to like.

Maybe if the price drops and no dealer markups, I'll check out Mach E for my next car but that is several years away.

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[EVS]

Maybe if the price drops and no dealer markups, I'll check out Mach E for my next car but that is several years away.

I am sorry to hear that you have just been Musked. Yes, that's a lot of money. If you have taken a loan, it probably added a few hundred dollars to the monthly payment.

Other car companies announces the price and model changes well ahead of time and do these price changes gradually so consumers don't see these suddent overnight changes. Tesla has been doing these scams for many years now. Sell a whole bunch of cars at higher prices at the end of the quarter, sometimes falsely saying prices will go up next quarter. Then suddenly, they slash the prices hugely right after the quarter end. It's all about benefitting the stock holders; consumers be damned.

I am looking at new Mach-es on cars.com in CA. It seems the ADMs are mostly gone. I see almost all cars are showing $5000-$10000 price drops. Here is one with $12k drop and still looks expensive. What was this guy thinking? Anyhow, looks like there are many Select models below the IRA limit . Is Select the short range version? Prices are coming back to earth finally.

https://www.cars.com/vehicledetail/93457612-6cf3-4bf2-bc96-d139af0bfb39/

2022 Ford Mustang Mach-E GT
22 mi.
$75,405 $12,000 price drop

 

[moparguy]

I've always been a fan of the Mach E and Ford. Ford is actually the first stock I invested in my Roth IRA over 15 years ago. Jim Farley seems like he's taking Ford in the right direction (as best possible). I have a real hard time, however, going to the Ford dealership and paying 15K over MSRP for a Mach E. It just doesn't sit right with me. I will not be taken advantage of knowingly. I ended up buying a Model Y Performance in October. The car is phenomenal to be honest. I personally like its stying though I know that is subjective. I love the acceleration, great range, dependable supercharger network, not having to pay for gas, simple elegance of the interior, and the regular updates which improve the vehicle instantaneously. We now have Apple Music so I can listen directly and there is no reason to use my phone via blue tooth. Any issues and there is a mobile service person who comes directly to my house.

Unfortunately I paid 71K for my car MY performance in October and it can now be purchased for 58K new. If it was available at the time, I would have just gotten the Long Range. So I am very bummed that I could today buy a Model Y that meets my needs for 53K and get a 7.5 K tax credit for a net cost of 45K. Basically I overpaid by over 26K which would have covered so many expenses for my wife and kids. It is not fair.

I agree that EM is a real jerk and he brings down the image of the company. Honestly, at this point, I think he is a net negative for Tesla and they would do better with a new CEO. I will not tell you TSLA is a good investment. But I will tell you Model Y is a great car and I would highly recommend it, especially at the current price. It's also made in America by hard working Americans. So if you can get over Musk, there is a lot to like.

Maybe if the price drops and no dealer markups, I'll check out Mach E for my next car but that is several years away.

If Tesla raised the price of Model Y by $5000, were you going to write them a check for the difference? is that fair enough? you made the purchase on the day you purchased the car, you were happy with the price then, and that's the reason why you purchased the car, what happens next is irrelevant.

I had Mach E on order ( Feb 2022 ), arrived back in October 2022, I walked away, reason was that I am expecting the bubble to burst so figured why spend $62k on a CA RT1 now, I can probably wait few months and get it cheaper, fast forward, as of today, I can get a GT for less than that!

If you buy a home today, and value go up 20% in 5 years, do you give refund to the previous owner since price went up or if it goes down, do go and make him refund you the difference?

I understand the frustration, but it is life, cars were never meant to be appreciating asset ( few excluded ), in the current situation of economy, expect further discount, I won't be surprised if Tesla removes the turbine wheels from MYP and make it optional to bring that car under the $55k! they are being smart, we are approaching a recession and they need to survive it, Ford dealers can go suck it now with their $10k adm on top of a $68k Mach E premium eawd.

 

[PatrickG]

-1 MME buyer here. Went to the Tesla showroom as soon as I heard about the price cut. I'm taking delivery of my MYLR later this week, will call the Ford dealer and get my deposit back once the deal is done. I already have a VIN for the Tesla and it's in my local area, so now it's just a matter of stopping by my bank on Tuesday, then scheduling the delivery.

 

[PatrickG]

Add the third row to the performance and now you have a 53.5k car with the tax credit. Best deal in my opinion . Nice rims and power

I tried, but currently you can't spec an MY Performance with the 3rd row. Since the cap is $55k for the 5-seat MY, no variation of the Performance will qualify, but you can get a Model 3 Performance with a tax credit now.

I ordered my Wife’s Mach-E on 3/11/22, still stuck in limbo, started building it on 12/19 hasn’t finished production. When I saw that Tesla had done this, I showed her a $54,990 Y. After tax credits it would 6k less than what we are to pay for premium SR. She looked it it, looked at me and said “I don’t care if that Tesla is 20k less and can do zero-60 in 4.8 sec. It’s ugly the dashboard is not ergonomic, and the brand is pretentious.”

Guess we will continue to wait. It’s her car. I think I’m with her though.

I aspire to that type of relationship with money, but for me currently, $20,000 is still a lot. I am happy to take a slightly less attractive car with a douchey brand while keeping that money in my pocket.

Unfortunately I paid 71K for my car MY performance in October and it can now be purchased for 58K new. If it was available at the time, I would have just gotten the Long Range. So I am very bummed that I could today buy a Model Y that meets my needs for 53K and get a 7.5 K tax credit for a net cost of 45K. Basically I overpaid by over 26K which would have covered so many expenses for my wife and kids. It is not fair.

I thought everyone in the EV market understood that we have all been paying an early adopter's fee, and the prices would and should eventually drop precipitously. You should always expect that you'll be able to get a comparable car for cheaper in the future, but this is especially true when you're working with emerging technologies. It was plainly obvious to everyone that 2022 was a bad time to buy any car new or used. Your story is painful, but I don't think there's anything unfair or really even unexpected about it.

 

[EVnewbie3000]

I tried, but currently you can't spec an MY Performance with the 3rd row. Since the cap is $55k for the 5-seat MY, no variation of the Performance will qualify, but you can get a Model 3 Performance with a tax credit now.

I aspire to that type of relationship with money, but for me currently, $20,000 is still a lot. I am happy to take a slightly less attractive car with a douchey brand while keeping that money in my pocket.


I thought everyone in the EV market understood that we have all been paying an early adopter's fee, and the prices would and should eventually drop precipitously. You should always expect that you'll be able to get a comparable car for cheaper in the future, but this is especially true when you're working with emerging technologies. It was plainly obvious to everyone that 2022 was a bad time to buy any car new or used. Your story is painful, but I don't think there's anything unfair or really even unexpected about it.

Tesla took the 7-seater option off then. It was available on the website when the prices dropped initially.

 

[DonnieJ]

Yeah, that's a good perspective. In competitive EV markets, the Tesla price cuts could simply be considered a response to the $15k Ford dealer markups going away. People were still lining up to buy the MME with those markups. They probably still will buy at MSRP after the Tesla price cuts.

Of course Tesla will sell more cars at a lower price. The question is whether or not Ford will sell fewer. Just because 100 people say they are ditching their Ford orders for Teslas, doesn't mean those 100 Fords won't get purchased.


We'll assume that's true, but that has nothing to do with the value of the same brand new car dropping 20% in one day. You're now looking at 20% on top of 20% if we've returned to the pre-covid depreciation rules.

Example: You buy your car at $50k. Someone else buys the same model (brand new) at $40k the next day. One year later you both try to sell your car to the same person. The 40k person is willing to sell at 70% of value, or 28k. If you try to match that, you are selling it less than 56% of your purchase value.

So yeah, it's a big deal to people trying to trade-in/sell their car every X years. With that drastic of an immediate price cut, you are likely going to owe more money than the car is worth given how you most likely set up your loan.

And again, I'm not arguing whether this part of capitalism is good or bad - only pointing out that the reaction of many buyers of the old price will be very negative. Perhaps they'll forget about it the next time they are purchasing a car, but maybe not.

Make that 101 people and ai definitely got something not made by ford, the greed has put me out of the game.

 

[4sallypat]

@sdevfan Ouch - that must hurt with the Tesla dropping prices recently.

It's like buying a home when it was at peak and then noticing now that the price was inflated.

BTW, EVs that have battery mineral / sourcing / assembly criteria for the tax credit may be going away come March.

Maybe in a couple of years all batteries will be made in friendly countries....

 

[KevinS]

I was curious to see how this was affecting their inventory and see there were a slew of Model Ys that were just above the 55k threshold -- less than a thousand over. Even the white ones.

I guess this is really about preordering a car? I would think they'd be moving them all from their inventories.

 

[BMT1071]

I aspire to that type of relationship with money, but for me currently, $20,000 is still a lot. I am happy to take a slightly less attractive car with a douchey brand while keeping that money in my pocket.

To my mind it's about buying the car you want. There are countless cars that can be had at a lower price. It just depends on how many compromises/concessions you are willing to make to save money. If the Tesla looks better after your cost/benefit analysis, go for it. If you really don't want a Tesla and you are just buying it because it's cheaper, that seems silly.

 

[Bmr4MachE]

MME is WAY over priced now. The MY23 price increase was already ridiculous but now it looks even worse.

What also sucks is the value of ALL Mach-Es just dropped including my MY22.

Also, no Teslas have a 5 second fun limit.

 

[MachEMaster]

Good news! More White Teslas for everyone! The more Teslas there are on the road, the Cooler we look in our MMEs! Bring it on!

 

[Old Guy]

As footnote to nothing, we spent the last two weeks of December in Palm Desert, California . Nary a Mach-e in sight but loads of Teslas.

 

[wmaney]

Apologies if this has already been posted.

https://www.cnn.com/2023/01/16/business/used-car-prices

 

[Jacques]

Good news! More White Teslas for everyone! The more Teslas there are on the road, the Cooler we look in our MMEs! Bring it on!

Good news! More White Teslas for everyone! The more Teslas there are on the road, the Cooler we look in our MMEs! Bring it on!

Also the ugly wheels

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