Tesla Slashes Prices

[newmme]

One thing that is not brought up a lot is the cost to insure and repair the Tesla. Typically the insurance cost is a lot higher then other cars because the repair costs for tesla are typically a lot higher than other brands. There are only a select few body shops that can even work on a Tesla because Tesla will not ship parts to non approved shops.

Insurance is very personalized, but I get your point.

However, Tesla now offers insurance. My neighbor has a Model Y, plus a teenager with a camry. Tesla insurance does not charge extra for teenagers. He literally pays $50 a month for the Y, and $55 for the teenager. He told me Tesla insurance cut his State Farm bill by 65%. The app was pretty slick and you could see all the details live.

Tesla Insurance

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[heisnuts]

Insurance is very personalized, but I get your point.

However, Tesla now offers insurance. My neighbor has a Model Y, plus a teenager with a camry. Tesla insurance does not charge extra for teenagers. He literally pays $50 a month for the Y, and $55 for the teenager. He told me Tesla insurance cut his State Farm bill by 65%. The app was pretty slick and you could see all the details live.

Tesla Insurance

Wow, I did not know Tesla now offers insurance through their App. I was used to seeing the average annual insurance cost for a Tesla from national brands like State Farm in the $3K to $4K range per year just for the Tesla.

 

[BMT1071]

If Chevy releases the EV Silverado at their launch prices, they're going to cut into lightning sales since ford has gone nuts with increasing costs there too.

I know some people are loyalists and no matter what they dont stray but if they're not BMW or Mercedes, they cant outprice themselves to their direct competitors. Ford is in an interesting position and need to act fast. Model Y prices will kill MachE orders and again, if Chevy can get their SilvERado out there at close to launch prices, the Lightning will get hit quick.

It's hard to say how the Lightning/SilvERado thing will play out. On the ICE side there is a large population dedicated to each brand that would never consider a truck from the other brand under any circumstance. We'll see if that carries over to EVs.

 

[HutchRed]

It's hard to say how the Lightning/SilvERado thing will play out. On the ICE side there is a large population dedicated to each brand that would never consider a truck from the other brand under any circumstance. We'll see if that carries over to EVs.

Yup, I completely agree. Our family was always all Fords and mostly still are (especially for American made cars) but if Chevy releases an every man ev truck for 10k less than Ford does (XLT being 64k now then I am sure plenty of people will give it a try. On top of that, if they can get in 15k cheaper on fleet sales, (58k pro starting price) then oof, game over. Companies lose loyalty quick when they're saving 10s of thousands of dollars per vehicle. Ford's only advantage is them being the only real player (Rivian, I love them but they dont count)

 

[tdmeng]

Yup, I completely agree. Our family was always all Fords and mostly still are (especially for American made cars) but if Chevy releases an every man ev truck for 10k less than Ford does (XLT being 64k now then I am sure plenty of people will give it a try. On top of that, if they can get in 15k cheaper on fleet sales, (58k pro starting price) then oof, game over. Companies lose loyalty quick when they're saving 10s of thousands of dollars per vehicle. Ford's only advantage is them being the only real player (Rivian, I love them but they dont count)

Its also why manufacturers love showing off conquest sales statistics. The Mach e got a lot of customers to think about Ford, and walk into a Ford dealership.

 

[BMT1071]

Yup, I completely agree. Our family was always all Fords and mostly still are (especially for American made cars) but if Chevy releases an every man ev truck for 10k less than Ford does (XLT being 64k now then I am sure plenty of people will give it a try. On top of that, if they can get in 15k cheaper on fleet sales, (58k pro starting price) then oof, game over. Companies lose loyalty quick when they're saving 10s of thousands of dollars per vehicle. Ford's only advantage is them being the only real player (Rivian, I love them but they dont count)

Yeah, some fleet managers are brand loyal as well but they will have a harder time sticking with Ford if there are significant $$$ to be saved.

 

[Geniusk24]

Will be interesting to see what happens to all of those dealers who have used Tesla vehicles on their lots since customers can now buy a brand new one for much cheaper.

 

[MachHunter]

Started a new thread to discuss this chart. I already see a few errors, like software upgrades don't factor into MSRP and the fact my worst case scenario on my order assumes my PCO is all good, which I can't see as a guarantee given Ford's performance so far on stuff like that.

Rather than clog this thread up talking about it, here's a place to share your two cents...

https://www.macheforum.com/site/threads/chart-mach-e-vs-tesla-new-prices.25275/

 

[EVS]

I left that camp, my next car might be a Model Y Performance or a Model X Plaid. Can't argue with them being significantly faster cars for less money.

$117k SUV that is possibly faster than every Lamborghini produced? $112k sedan that is DEFINITELY faster than every car ever made?

Model Y Performance is no joke either, 11 second car in the quarter mile for like $50k after factoring in the incentives?

Teslas also have significant range advantage at each price point.

Faster in a straight line only, isn't it?

Also not faster than the cheapest gas car to reach any destination. If I'll be in a hurry, I won't be taking these fast cars. Do a 5-6 sec sprint, then drive on the freeway like a granny and then wait in line to charge is not my idea of being fast. I prefer more useful features. But nothing wrong with anyone's preferemce.

The claimed EPA range is also very doubtful. While most other EVs have more real range, Tesla's real range is much less.
https://insideevs.com/news/496740/tesla-disputed-edmunds-tests-results/

 

[EVS]

Yeah, they really need to be building their own if they want to stay competitive. Crazy.

Thanks for the info!

There are pros and cons of this. Ford can get stuck with large investments in a domain it doesn't have expertise. What if that technology doesn't work out?
It is much cheaper to switch supplier. That's what Tesla is doing also, switching to CATL etc.

Also, if there is a battery issue, battery supplier picks up the tab. See Chevy Bolt battery recall. LG paid $1.9 billion of the $2B cost.
https://www.theverge.com/2021/10/12/22722317/chevy-bolt-recall-paid-lg-electronics-gm-costs

Batteries (especially the toothbrush batteries Tesla used from Panasonic) are commodity items. Just like tires and 12V batteries. No reason for Ford to make its own tires, even though each cars need minimum 4.
The way things are going, Tesla's Nevada Gigafactory will soon be an empty warehouse to store the excess inventory.

 

[nvabill]

Will be interesting to see what happens to all of those dealers who have used Tesla vehicles on their lots since customers can now buy a brand new one for much cheaper.

Unless they find uneducated buyers they will need to lower prices significantly or be stuck with a lot of high priced inventory.

 

[nvabill]

Faster in a straight line only, isn't it?

Also not faster than the cheapest gas car to reach any destination. If I'll be in a hurry, I won't be taking these fast cars. Do a 5-6 sec sprint, then drive on the freeway like a granny and then wait in line to charge is not my idea of being fast. I prefer more useful features. But nothing wrong with anyone's preferemce.

The claimed EPA range is also very doubtful. While most other EVs have more real range, Tesla's real range is much less.
https://insideevs.com/news/496740/tesla-disputed-edmunds-tests-results/

Speed still sells quite well in the US.

 

[nvabill]

Started a new thread to discuss this chart. I already see a few errors, like software upgrades don't factor into MSRP and the fact my worst case scenario on my order assumes my PCO is all good, which I can't see as a guarantee given Ford's performance so far on stuff like that.

Rather than clog this thread up talking about it, here's a place to share your two cents...

https://www.macheforum.com/site/threads/chart-mach-e-vs-tesla-new-prices.25275/

I think it is doubtful the Mach E will ever be classified as a SUV as they have dropped the Ford Escape down to a car now.

 

[RedOctobrrr]

Faster in a straight line only, isn't it?

Also not faster than the cheapest gas car to reach any destination. If I'll be in a hurry, I won't be taking these fast cars. Do a 5-6 sec sprint, then drive on the freeway like a granny and then wait in line to charge is not my idea of being fast. I prefer more useful features. But nothing wrong with anyone's preferemce.

The claimed EPA range is also very doubtful. While most other EVs have more real range, Tesla's real range is much less.
https://insideevs.com/news/496740/tesla-disputed-edmunds-tests-results/

All valid points, I would go for a longer range EV family car if road trips were my thing, for sure. Waiting in line to charge is not something I envision in my future because that's just not something I've come across. Work trips usually involve a rental car, vacations I fly to, family and friends all live within 75 miles, etc, but I see your points.

As for straight line, I used to track my Evo and miss that, but I'm not sure I'd take a $200k Lambo on the Twisties like I did my $38k Evo lol, so sort of a moot point for me.

 

[HutchRed]

Faster in a straight line only, isn't it?

Also not faster than the cheapest gas car to reach any destination. If I'll be in a hurry, I won't be taking these fast cars. Do a 5-6 sec sprint, then drive on the freeway like a granny and then wait in line to charge is not my idea of being fast. I prefer more useful features. But nothing wrong with anyone's preferemce.

The claimed EPA range is also very doubtful. While most other EVs have more real range, Tesla's real range is much less.
https://insideevs.com/news/496740/tesla-disputed-edmunds-tests-results/

I will say, when I had my model 3 the range was definitely generous on what was displayed vs what was I was actually seeing and I know there have been a lot of disputes about it.

I am not going to say it doesnt matter, it does. My wife's MachE shows way better than the factory rated range in the summer which is nice.

Does it matter? From a principle standpoint, yeah, I think so. Does it impact you? Unless you actually drive that range, no. It actually doesnt. I am not saying it's right. Just saying that the slight variance (even shown in the article) wont make a different because you're not driving your car to those extremes without charging. Given how much better the Tesla charging network is (minus busy times in CA, lol) it's easier to live with on road trips.

Just my 2 cents.

Would I have another tesla? probably. Would I have another mache if we got rid of this one? maybe. I dunno...

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