The Tesla effect - Price Drop

[Lotustoronto]

Wondering what everyone's thoughts are on the effect Tesla will have on it's recent price drops

Between 10-20% price drops between model years is something I have never seen before. Then again, they do direct selling to customers and perhaps mainstream retailers offer the discounts through different incentives? Either way this will certainly have ripple effects throughout the automotive landscape.

Will Lotus increase pricing on the Emira? Will the electric offerings still be competitive?

 

[Rudolph]

* * * * *
SHANGHAI - Hundreds of Tesla owners gathered at the automaker's showrooms and distribution centers in China over the weekend, demanding rebates and credit after sudden price cuts they said meant they had overpaid for electric vehicles they bought earlier.

On Saturday, about 200 recent buyers of the Tesla Model Y and Model 3 gathered at a Tesla delivery center in Shanghai to protest against the U.S. carmaker's decision to slash prices for the second time in three months on Friday.

Many said they had believed that prices Tesla charged for EVs late last year would not be cut as abruptly or as deeply as the automaker just announced in a move to spur sales and support production at a Shanghai assembly plant. The scheduled expiration of a government subsidy at the end of 2022 also drove many to finalize their purchases.

"Price cuts are part of this EV cycle in a softer (economy) with competition increasing in China," Daniel Ives, an analyst who follows Tesla at Wedbush Morgan, said in a tweet on Friday.

While established automakers often discount to manage inventory and keep factories running when demand weakens, Tesla operates without dealerships and transparent pricing has been part of its brand image.

"It may be a normal business practice but this is not how a responsible enterprise should behave," said one Tesla owner protesting at the company's delivery centre in Shanghai's Minhang suburb on Saturday who gave his surname as Zhang.

He and the other Tesla owners, who said they had taken delivery in the final months of 2022, said they were frustrated with the abruptness of Friday's price cut and Tesla's lack of an explanation to recent buyers.

Zhang said police facilitated a meeting between Tesla staff and the assembled owners at which the owners handed over a list of demands, including an apology and compensation or other credits. He added the Tesla staff had agreed to respond by Tuesday.

 

[Eagle7]

It's going to put the bite on EV competitors, that's for sure.

 

[Lotustoronto]

Tesla basically told everyone to start negotiating car prices at dealer, prices are coming down

 

[Nova]

The effect is that I have ordered a Model Y Long Range. Elon is raising the middle finger to the IRS and I'm happy to take advantage of this epic struggle between two titans.

 

[NicolasB]

Crazy the plaid is now $115k. 0-60 under 2 seconds, low 9's in 1/4 mile. Too bad they aren't fun to drive other than the party trick of launching insanely fast

 

[Lotustoronto]

Elon is a savage

 

[Leonard]

Makes all EVs in that price bracket look expensive now. Especially BMW i4
I'm still going to get my Polestar 2 though. Just not a Tesla lover, car equivalent of Apple to me. And I'm all about the Android

I was also suprised how cheap 2nd hand Teslas are now. And sure there will be further adjustments.
A 21 plate 8k mile long range motor car looks cheap at 36k or less..

 

[idleuser]

Makes all EVs in that price bracket look expensive now. Especially BMW i4
I'm still going to get my Polestar 2 though. Just not a Tesla lover, car equivalent of Apple to me. And I'm all about the Android

I was also suprised how cheap 2nd hand Teslas are now. And sure there will be further adjustments.
A 21 plate 8k mile long range motor car looks cheap at 36k or less..

Have you driven the polestar 2? There is little to no feel in the steering. The I4 M50 is actually felt better of the 2.

 

[Leonard]

Have you driven the polestar 2? There is little to no feel in the steering. The I4 M50 is actually felt better of the 2.

Yes totally agree.
4wd is handy where I live though and more importantly I have a 55k limit and the i4 with M Pro Pack and Tech pack is almost impossible to find for that... No doubt BMW will lower their prices now based on the Tesla drops!!!

 

[schuey100]

What’s this got to do with an Emira? Who cares

 

[TomE]

What’s this got to do with an Emira? Who cares

It’s in the Off Topic sub-forum…

 

[Concept24]

About 2-3 years before we bought our house (and before our neighborhood was developed), owners of houses just one mile down the street had paid $50,000 more than we did. Some tried to sue the builder, but their suit was thrown out of court. The judge said that buyers of real estate have no guarantee that their properties are investments that cannot drop. The same is true of car manufacturers and buyers. The buyers have no guarantee of purchase value.

 

[Cachaco131]

I think it simply reflects that the Wow factor of EV/Tesla is going away. Teslas are expensive and quality is quite off relative to the BMW/Mercedes/Audi equivalent...brands that are all launching strong competition. Their first mover advantage was never going to be sufficient to sideline established players.

 

[Nova]

I think it simply reflects that the Wow factor of EV/Tesla is going away. Teslas are expensive and quality is quite off relative to the BMW/Mercedes/Audi equivalent...brands that are all launching strong competition. Their first mover advantage was never going to be sufficient to sideline established players.

Very true. I feel Elon missed the opportunity to transition into more traditional car building practices, and more mainstream ergonomics. It was only a matter of time that other car manufacturers catch up to Tesla in terms of "good enough" range and performance. I would never have bought a Tesla Y for $66k, but for $53k… I will give it a try.

Currently waiting for VIN assignment. At least I got a delivery date range.

 

[eriegz]

* * * * *
SHANGHAI - Hundreds of Tesla owners gathered at the automaker's showrooms and distribution centers in China over the weekend, demanding rebates and credit after sudden price cuts they said meant they had overpaid for electric vehicles they bought earlier.

On Saturday, about 200 recent buyers of the Tesla Model Y and Model 3 gathered at a Tesla delivery center in Shanghai to protest against the U.S. carmaker's decision to slash prices for the second time in three months on Friday.

Many said they had believed that prices Tesla charged for EVs late last year would not be cut as abruptly or as deeply as the automaker just announced in a move to spur sales and support production at a Shanghai assembly plant. The scheduled expiration of a government subsidy at the end of 2022 also drove many to finalize their purchases.

"Price cuts are part of this EV cycle in a softer (economy) with competition increasing in China," Daniel Ives, an analyst who follows Tesla at Wedbush Morgan, said in a tweet on Friday.

While established automakers often discount to manage inventory and keep factories running when demand weakens, Tesla operates without dealerships and transparent pricing has been part of its brand image.

"It may be a normal business practice but this is not how a responsible enterprise should behave," said one Tesla owner protesting at the company's delivery centre in Shanghai's Minhang suburb on Saturday who gave his surname as Zhang.

He and the other Tesla owners, who said they had taken delivery in the final months of 2022, said they were frustrated with the abruptness of Friday's price cut and Tesla's lack of an explanation to recent buyers.

Zhang said police facilitated a meeting between Tesla staff and the assembled owners at which the owners handed over a list of demands, including an apology and compensation or other credits. He added the Tesla staff had agreed to respond by Tuesday.

I don't understand what all these Tesla owners in this article are mad about here...

• You buy a product
• The next day, the company decides to lower the price of the product to generate more sales
• You get mad?

Humans are so dumb. Or am I the dumb one here for not getting why they're mad?

 

[Leonard]

I don't understand what all these Tesla owners in this article are mad about here...

• You buy a product
• The next day, the company decides to lower the price of the product to generate more sales
• You get mad?

Humans are so dumb. Or am I the dumb one here for not getting why they're mad?

You would be a little mad if you bought a luxury product like this and it went down by that margin overnight.
It's pretty unprecedented in luxury car market I'd have thought

 

[digilotus]

The biggest problem I've observed with Tesla is parts availability. Crash repair places just can't get parts, and Tesla provide no ETA as to when they may arrive leaving panel shops and customers in extended limbo.

 

[Leonard]

You would be a little mad if you bought a luxury product like this and it went down by that margin overnight.
It's pretty unprecedented in luxury car market I'd have thought

Just to add to this my mate has just had his new company car withdrawn as his current long range Tesla 3 has dropped so much in value in secondary market. So has to drive it for another year

First World problems... Probably not what Elon was hoping for tho

 

[Mctaff]

conversely porsche are raising their [second hand] prices.

I had my eye on a 991 @ 75k. It was then 77k post xmas and within 12 hours of me enquiring is now 79k. recession anyone? any customers need milking?