I suspect the people that want a Tesla know the pitfalls. They just want one regardless and will overlook things that others dropping 50+ large on a car wouldn’t put up with. There may be some that don’t know what they’re getting in to, but I assume most do.
So how did Tesla do with your rush to deliver prior to new year’s.
Price cut + miss of analyst estimates for Q4 deliveries.
Crazy how missing analyst predictions by 1% (63,150 vs. 63,700) results in a 10% drop in stock value.
For some perspective, Model 3 is still the best-selling luxury vehicle in the US this year. In December, it was the fourth best-selling passenger car after Camry, Accord, and Civic.
Tesla to Cut Prices to Woo More U.S. Buyers
The electric car maker will reduce prices for the Model S, Model X and Model 3 vehicles in the U.S. by $2,000 as full-year deliveries reached
Not just Model 3…
However, shares of Tesla fell 7% in premarket trading after the company missed analysts’ expectations on Model 3 deliveries and internal targets on full-year deliveries of Model S sedans and Model X sport-utility vehicles.
But that’s mainly due to the expiring tax credit, isn’t it?
Wonder if they can sustain this growth into 2019. The $2,000 price reduction was to help offset the decrease in tax credit from $7,500 to $3,750.
The delta is still $1,750, but I suppose you’re paying less sales tax on the lower price, marginally lower registration fees, you save the $2,000 right away as opposed to waiting for a tax rebate, etc.
Rumors that Model 3 inventory was building up makes me feel that either people that wanted to get the Model 3 already got one, or that they are not doing a good job predicting what options people want on their vehicles. Cutting the cost of the Model 3 to help keep its position as “affordable” even with the loss of the tax credit makes sense, but cutting the cost on the Model S and Model X just screams desperation to move units to me.
I think part of the problem is the high end Model 3 buyers have peaked, and the demand is now for the current vaporware model.
Which may suggest the need to cut prices further when the $3,750 goes away
Price cut is not a huge deal IMO.
In reality, all automakers change pricing regularly - usually with rebates, subsidized financing, or hidden dealers incentives the customer does not even know about. This price cut alone is not concerning to me. Let’s see whether sales numbers continue.
The savings on tax/reg for a AWD M3 is minimal $252, according to CA DMV
The savings on total loan cost decreases by around 2-3k
Model 3 AWD with 7500 rebate
61,200 (w/ dest fee)
6,482.00 (CA Tax/Reg)
67,682 Total Financed
(60m) 1,231, -Fed 125 (7,500/60), 1106, -Gas 906 Total cost $73,875
(72m) 1,044, -Fed 104 (7,500/72), 940, -Gas 740 Total Cost $75,135
Model 3 (-2K, with 3750 rebate)
59,200 (w/ dest fee)
6,257 (CA Tax/Reg)
65,457 Total Financed
(60m) $1,191, -Fed 62 (3,750/60), 1129, -Gas 929 Total Cost $71,447
(72m) $1,009, -Fed 52 (3,750/72), 957, -Gas 757 Total Cost $72,665
You can’t include gas in the total loan cost. That’s going to be a variable cost for every person out there. Furthermore, it has absolutely nothing to do with the financing.
Agreed - thanks, i was including it to see what the monthly payments amounts to relative to my 20 mpg cars cost and including price of electricity i would save about $200 p/mo
The $1129 and $957 would be the correct monthly payments
You make an excellent point. So they’re slowly but surely getting closer and closer to that magical 35k number. I suspect we will see that model in 2020 then when there’s hundreds of thousands of these out there and on used car lots.
Cheapest Model 3 is selling for private seller 45k used with 1,300 miles. I bet someone could get a motivated seller to drop it to 40k. We’re almost there!
I’m really interested in seeing how Resale value holds up once the market of people willing to buy an EV now is saturated. As it is now, Tesla’s have held up remarkably well, but this could change once everyone that’s willing to buy one (a smaller subset of the population than the general car buying population) has one.
Contrary to reports, Tesla is not the US #1 manufacturer of premium vehicles