Tesla Slashes Prices

[bnc734]

I‘m curious, do we think Ford will respond with more price cuts?

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[Billyk24]

Wsiy

Its going to kill almost every other car manufacture. Tesla have already publicly stated they will continue to lower prices to take more market share and increase EV adoption.
VW losing $7500 even though the id4 is made in US now is a HUGE blow. Ford and GM are the only ones that are going to benefit from IRA and they are just not producing enough cars at a profit to make a dent. Hyundai/Kia and maybe Polestar might have a chance even without being made in US. I don't count Mercedes or Porsche as they are too expensive for the normal car buyer.
Reminder back when the M3 was introduced they targeted $39K for the base model and it sold for that for a few months. They are now at a scale that they can return to that original price and still make a healthy profit.
I love our MME but I will be purchasing a second car this year and it will be really had to justify anything other than a Tesla. You can buy a performance model for less than the starting price of a Polestar 3. Christ almighty indeed!
[Wait a minute. Order and wait many months as in the past or get higher price model and receive in 6 weeks,?

 

[MachKet]

I‘m curious, do we think Ford will respond with more price cuts?

With them just upgrading the factory for more production they almost certainly will. Only people buying an extend prem over a MYLR now are going to be Tesla haters that make poor financial decisions

 

[voxel]

Its going to kill almost every other car manufacture. Tesla have already publicly stated they will continue to lower prices to take more market share and increase EV adoption.
VW losing $7500 even though the id4 is made in US now is a HUGE blow. Ford and GM are the only ones that are going to benefit from IRA and they are just not producing enough cars at a profit to make a dent. Hyundai/Kia and maybe Polestar might have a chance even without being made in US. I don't count Mercedes or Porsche as they are too expensive for the normal car buyer.
Reminder back when the M3 was introduced they targeted $39K for the base model and it sold for that for a few months. They are now at a scale that they can return to that original price and still make a healthy profit.
I love our MME but I will be purchasing a second car this year and it will be really had to justify anything other than a Tesla. You can buy a performance model for less than the starting price of a Polestar 3. Christ almighty indeed!

Nah.. EV lease loophole still exists and demand is decent for other carmakers that offer the $7500 cap reduction.

Tesla cutting prices means carmakers can't raise them willy-nilly and dealerships can't just charge $10K markup on EVs because of competition. The Nissan dealers I spoke to about my Ariya reservation (I could move it to any dealership) are still charging markup. They are delusional.

 

[moparguy]

Could be because of a MY24 major refresh that is coming out soon. My guess Tesla doesn't want to slow any momentum anytime soon. Ford raises Tesla drops, it's going to be a bumpy ride over the next 12 months.

If anyone were sitting on the last earning call, they would understand, he made it clear that he is going to survive the recession, and he is willing to make 0 money rather than lose money to stay afloat, lowering prices by this much will smash the competition and this what's happening now, with all the years of experience I think Tesla can afford to do that, especially with the health margins they had, they operate as a capitalist company would operate in 2023 VS Ford which is precisely how a socialist company would work ( I came from and lived most of my life in a socialist country ) they say things but only a small fraction of what they say is actually get achieved, most of EV owners hates Tesla but they want their brands to operate like a Tesla, 2nd, this is a spy shot if you wish to call it that of the new M3 so we know M3 and MY are going to be refreshed, they are probably trying to sell as much now too.

I am sure C-Suite at competitors are struggling these days at the daily scrum to find out how would they keep selling cars, and honestly all this is good for us consumers, by the end of the day we want healthy competition and good cars, the prices really sky rocketed in 2021 and 2022, just look at the new Prius prime, loaded is $42k, that's absurd!

If Tesla makes a nice interior, they would smash everyone completely.

 

[azerik]

That's a good looking refresh if it happens. Maybe they'll eff that all up though by turning the steering wheel into a flight stick and putting the AC vent control in the back seat adjustable via game pad.

 

[leehinde]

Tesla has slashed prices yet again

I bought in Feb. I knew that if I bought anything, anytime in the next three years that things could change, so I had a no-buyer's-remorse attitude going in. I think my Mach-E is better than the Model Y, but I'm not sure it's $11,000 better. Had I bought a Model Y in Feb, I might be slightly peeved.

 

[Socalsp3]

If anyone were sitting on the last earning call, they would understand, he made it clear that he is going to survive the recession, and he is willing to make 0 money rather than lose money to stay afloat, lowering prices by this much will smash the competition and this what's happening now, with all the years of experience I think Tesla can afford to do that, especially with the health margins they had, they operate as a capitalist company would operate in 2023 VS Ford which is precisely how a socialist company would work ( I came from and lived most of my life in a socialist country ) they say things but only a small fraction of what they say is actually get achieved, most of EV owners hates Tesla but they want their brands to operate like a Tesla, 2nd, this is a spy shot if you wish to call it that of the new M3 so we know M3 and MY are going to be refreshed, they are probably trying to sell as much now too.

I am sure C-Suite at competitors are struggling these days at the daily scrum to find out how would they keep selling cars, and honestly all this is good for us consumers, by the end of the day we want healthy competition and good cars, the prices really sky rocketed in 2021 and 2022, just look at the new Prius prime, loaded is $42k, that's absurd!

If Tesla makes a nice interior, they would smash everyone completely.

tesla benefited from govt rebates and still do. If they operated in a purely capitalist system, they wouldn't have survived

 

[SWO]

Its going to kill almost every other car manufacture. Tesla have already publicly stated they will continue to lower prices to take more market share and increase EV adoption.
VW losing $7500 even though the id4 is made in US now is a HUGE blow. Ford and GM are the only ones that are going to benefit from IRA and they are just not producing enough cars at a profit to make a dent. Hyundai/Kia and maybe Polestar might have a chance even without being made in US. I don't count Mercedes or Porsche as they are too expensive for the normal car buyer.
Reminder back when the M3 was introduced they targeted $39K for the base model and it sold for that for a few months. They are now at a scale that they can return to that original price and still make a healthy profit.
I love our MME but I will be purchasing a second car this year and it will be really had to justify anything other than a Tesla. You can buy a performance model for less than the starting price of a Polestar 3. Christ almighty indeed!

I think the new law hurts Kia/Hyundai and Polestar bad. Demand is cratering. The former will be fine but Polestar was already bleeding cash.

 

[theduke]

tesla benefited from govt rebates and still do. If they operated in a purely capitalist system, they wouldn't have survived

Technically, Tesla got a loan. One that was ~12 times smaller than the one Ford go during the 2008 bailout. Tesla repaid theirs's, with interest, early. Ford also repaid theirs, with interest, in 2022, but not early.

Now, if you are referring to tax credits, well we only have our politicians to blame there. Both companies had the same tax incentives available to them. Is Tesla to be blamed because they took better advantage to them than anyone else?

 

[All Hat No Cattle]

Now, if you are referring to tax credits, well we only have our politicians to blame there. Both companies had the same tax incentives available to them. Is Tesla to be blamed because they took better advantage to them than anyone else?

That Tesla did an excellent job of manipulating our political system for monetary advantage is not debatable. But is it something to be proud of? Where did that $5 Billion+ that Tesla has received over the years come from? From other car manufacturers.

Musk is just another Corporate Welfare Queen, finagling money from other people to put in his pocket. $5 Billion of it. But it is going away, and then he will have to compete on the same level as everyone else. Hence the price cuts.

 

[theduke]

That Tesla did an excellent job of manipulating our political system for monetary advantage is not debatable. But is it something to be proud of? Where did that $5 Billion+ that Tesla has received over the years come from? From other car manufacturers.

Musk is just another Corporate Welfare Queen, finagling money from other people to put in his pocket. $5 Billion of it. But it is going away, and then he will have to compete on the same level as everyone else. Hence the price cuts.

It's not going away. The provisions in the IRA help Tesla more than any other company. In addition to the $7500 tax rebate for customers, there is a $45/kwh tax rebate that goes directly to Tesla for every kwh of battery they make in the USA. For Model 3/Y that's ~$3500 per car. For S/X ~$4500 per car. And there is no cap on either of these provisions. It's going to literally be billions from US Gov funds going to anyone that can make batteries in the USA.

 

[Socalsp3]

That Tesla did an excellent job of manipulating our political system for monetary advantage is not debatable. But is it something to be proud of? Where did that $5 Billion+ that Tesla has received over the years come from? From other car manufacturers.

Musk is just another Corporate Welfare Queen, finagling money from other people to put in his pocket. $5 Billion of it. But it is going away, and then he will have to compete on the same level as everyone else. Hence the price cuts.

?

 

[Mach1E]

Its going to kill almost every other car manufacture. Tesla have already publicly stated they will continue to lower prices to take more market share and increase EV adoption.
VW losing $7500 even though the id4 is made in US now is a HUGE blow. Ford and GM are the only ones that are going to benefit from IRA and they are just not producing enough cars at a profit to make a dent. Hyundai/Kia and maybe Polestar might have a chance even without being made in US. I don't count Mercedes or Porsche as they are too expensive for the normal car buyer.
Reminder back when the M3 was introduced they targeted $39K for the base model and it sold for that for a few months. They are now at a scale that they can return to that original price and still make a healthy profit.
I love our MME but I will be purchasing a second car this year and it will be really had to justify anything other than a Tesla. You can buy a performance model for less than the starting price of a Polestar 3. Christ almighty indeed!

If cheap prices was the way to “kill every other car manufacturer,” then everyone would be driving a Hyundai decades ago.

It certainly will help Tesla sales in the short term, but you have to remember, they’re still a tiny niche manufacturer in the automotive world at this point.

Now if they keep the prices cheap, fix build quality issues and make their cars attractive……. They could steal some REAL market share.

 

[Mach1E]

Is Tesla to be blamed because they took better advantage to them than anyone else?

Yes.

It’s one thing to take government help for the greater good because it’s needed (save the planet etc).

It’s an entirely different thing to abuse the system to become one of the richest people on the planet.

I don’t think the richest man in America needs to get any more of our tax money.

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