Yes, only one way for prices to go this year…
I hope other manufacturers take note and roll back the insane level of MSRP increases in recent times.
Incentives suck as they are taxable in some states.
Realistically though, how likely is this? I have a hard time believing manufacturers are willing to absorb cost increases based off of Teslas actions.
I can see more incentives but I doubt BMW is going to come out and say we’re reversing the MY23 MSRP increase.
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Elon is business savvy. These cuts are more macro than micro.
He’s getting front of the slump in demand. Other manufacturers can cut prices or lose more market share to Tesla. Those that don’t follow suit quickly, will be forced to do so even harder in the future. You better believe there are emergency C Level meetings this morning, and if there aren’t, those C Level employees need to be fired for incompetence.
EVs are the future and Tesla already has a massive lead, you’d be an idiot to let them take this much more market share this easily.
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most likely true, regardless.
Time to buy puts on Carvana?
A year too late?
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Good point, the used Tesla market has just gotten very interesting for those who are missing out on the tax credit due to the income limits…
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Problem is the likes of Ford and GM are currently net negative on EV production. Any prices cuts going forward will just further cut into their ICE profits.
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Nooooo! My EV Silverado is going to be delayed?
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Tesla price cut is probably the last straw for them, just look at this, overnight they lost more than $10M easily:
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Not sure what’s more shocking…the fact they’re still operating (and people are buying their cars) or the fact they have 37 (!) pages of Tesla inventory.
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My guess is they can sell at least 20 pages’ worth to people who have no idea what the price of a new Tesla is.
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Sometimes I question this. I think he’s incredibly intelligent and has a unique perspective on most things that a ton of people don’t have, but it’s entirely impossible to be a master of all trades.
I don’t think he sells his brand optimally. Whether you support or are against his personal views, they seem irresponsible to blast out and will most likely spoil business to at least some degree. Doing business is sterile and palatable by design.
Tesla is also not good at making leases attractive, which is a major oversight. The Wrangler 4XE became one of the fastest selling battery cars in America because the leasing math worked out so good. Tesla can’t even figure out how to reduce capitalized cost with discount.
I don’t think they’re doing a bad job overall, but there’s a ton of obvious places that business could be optimized (even to a peanut brain like me).
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We do not know why tesla did this but it is possible they are taking a page of Ford and GM’s playbook and using absorption pricing. Tesla has expanded rapidly and appears to have had way more production capacity versus demand for its cars at the pre December 2022 price. I would guess they have excess capacity and you have to pay for those fixed costs no matter how many cars you sell.
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I promise you that was not the last straw lol. He’s getting ahead of the game with the price cuts that other auto makers are not doing. You have Ford and GM increasing the price of some of their vehicles by 5k for the 23 models. Increasing prices going into a slowing economy is not going to result in a good outcome, especially with rate going to climb through this year. He’s taking the hit now rather than later which would be at a greater cost.
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LH signs that peak insanity is indeed over:
- Brokers advertising discounts
- Less members posting equity trade-ins.
- Flipping scarcity
- Multiple posts on where to find leasing discounts
- Members complaining about Tesla price cuts
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Someone needs to dig up that memo. We have an X7 M50i and the ride of the Wagoner is like riding on a cloud and so much better for long drives. I’d make room to add one of the price even came into the $600 range for a II
- The thread is often spammed with content other than peak insanity in used vehicles prices.
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