Massive Tesla price drop

[glhs837]

So, given a 25% profit margin before these cuts, they are still making good money, better than industry margins by a good bit. And of course, commodity prices have dropped. This also allows all the Model 3 and Model Y to qualify for the $7500 federal tax credit. The market for used ones is going to take a beating. Nobody has even done anything like this. I don't think, so seeing how it plays out will be interesting. I think the market will freak out to the negative, not counting volume over margin. With Austin ramping up, volume will increase also.

Now, I personally don't agree with the tax credit, but its there and they would be foolish to not use it as a demand lever.

 

[Clem72]

I have gotten used to larger vehicles. Really looking for an electric SUV, but I don't have Tesla X money. Not even reduced price Tesla X money.

 

[Kinnakeet]

I guess no one is buying them so they dropped the price and pray

 

[RoseRed]

Maybe he's so angry because he paid too much.

Pipe-wielding Tesla driver smashes cars in California road-rage rampage

Dash-cam video shows a masked man getting out of his Tesla without license plates and attacking a truck on a California freeway with a metal pipe in the latest road-rage incident involving the same…

nypost.com

 

[Kyle]

Maybe he's so angry because he paid too much.

Pipe-wielding Tesla driver smashes cars in California road-rage rampage

Dash-cam video shows a masked man getting out of his Tesla without license plates and attacking a truck on a California freeway with a metal pipe in the latest road-rage incident involving the same…

nypost.com

When captured, he'll either be a felon with a decades long record, an illegal alien, or both.

 

[Kyle]

I'm going to have to let my truck idle an extra hour a day to make up for all the de-emmissioning of the atmosphere.

 

[StadEMS3]

You ever notice the Tesla models are S3XY?

 

[glhs837]

I guess no one is buying them so they dropped the price and pray

With a +40% year over year sales increase thats not the case. More about making sure they qualify for the tax credit.

I have gotten used to larger vehicles. Really looking for an electric SUV, but I don't have Tesla X money. Not even reduced price Tesla X money.

You might take a look at the Y. It's a bit deceptive, and doesn't have the "Faberge Egg" falcon wing doors that the X does.

You ever notice the Tesla models are S3XY?

Of course....

 

[PrchJrkr]

Maybe he's so angry because he paid too much.

Pipe-wielding Tesla driver smashes cars in California road-rage rampage

Dash-cam video shows a masked man getting out of his Tesla without license plates and attacking a truck on a California freeway with a metal pipe in the latest road-rage incident involving the same…

nypost.com

Someone needs an ass whooping!

 

[Kyle]

Someone needs an ass whooping!

Or a 240Gr Jacketed Hollow Point doing 1250fps.

 

[PeoplesElbow]

I can understand the price dropping of the low end models to be eligible for the tax credit, but why lower the price of the luxury models that have no competition?

 

[Sneakers]

Clearing out stock to get money to reinvest in newer models?

Musk is always looking forward to bigger and better, and the current models are already old news to him.

 

[musiclady]

I guess no one is buying them so they dropped the price and pray

We were in LA in October. It seemed every other car was a Tesla. We started pointing them out like we used to do Beetles as kids.

 

[glhs837]

Clearing out stock to get money to reinvest in newer models?

Musk is always looking forward to bigger and better, and the current models are already old news to him.

They have about 20 billion cash on hand they don't need extra cash. I think this is really both a way to hit the tax credit and a flex on the competition that they can do this and still make more profit. Heck, Ford's CFO has recently said they are not making any money on the Mach-E, and I suspect the same for the Lightning.

 

[PeoplesElbow]

This is pretty interesting, I've watched this guy's videos for a few years now.

 

[glhs837]

I think I would weight those factors a bit differently. When you look at the numbers of competitors sold, there are simply not enough. Of them, even cumulatively. I think the death of the waiting list is the big thing.