[Bob-Electrico-Hombre]

This could mean a major challenge for TESLA financially. It means there is no profit to be made. However this will cut into ID.4 sale. Thoughts?


Tesla Inc. TSLA 0.28%increase; green up pointing triangle cut prices for some of its vehicles sold in the U.S. by nearly 20%, aiming to lure new buyers at a time Wall Street is concerned appetite for the car maker’s vehicles is weakening.
The cuts, which span Tesla’s lineup, are likely to allow some buyers to qualify for a $7,500 U.S. government tax credit.

Amid demand concerns, Tesla cuts prices by up to $13K in US

Tesla has massively cut prices across new models in the US (update: and Europe), with the largest price drop occurring...

electrek.co

 

[autoShaan]

Model Y vs ID4 AWD Pro S just got a lot more interesting at $53K and both currently eligible for $7500 tax credit.

 

[Nocedit]

Recent Model Y and Model 3 performance owners might want to go buy GAP insurance cause that 20% down payment just evaporated in record time.

 

[VW TECHNICIAN]

Reason behind is with so many decades in Auto industry.... running big huge factory requires minimum of 75-80% capacity to be running to stay positive....So what Tesla is doing is increasing volume and decrease margin, end result will be better if all key points are calculated correctly. And prime focus on EV i don't see Tesla running in any problems.
And Tesla dedicated charging network is just one of other sources of income not to mention all other assets that they are involved in.
And they had couple of good years of running higher than normal margins so now they can afford price reduction because of vertical integration and improving production costs.
I would not underestimate Tesla company ( and for one thing I give them big respect, they are inventors and not manufacturer that is buying out of the shelf hardware and making vehicles).
And any American should be proud of Tesla it is American made.
Manufacturers that produce big volumes may not have big margins, but they enjoy big business discounts on raw materials when buying in big volumes.... in car manufacturing business there is much bigger picture than just end result ( vehicle out of assembly line).

 

[SulfuricOlive]

I hope this puts pressure on Volkswagen to respond. I expect either a lot of cancellations or a price drop as well.

IIRC 2 years ago there was a $14k difference between a model Y LR and a FE ID.4. Now ProS AWD cost the same as a model Y LR. The value proposition kind of evaporated.

 

[tacomambo]

between 23 pro vs tesla rwd 3.. the tesla.. however the blanket tax credit is only until march.. i expect things to normalize by then

I hope this puts pressure on Volkswagen to respond. I expect either a lot of cancellations or a price drop as well.

IIRC 2 years ago there was a $14k difference between a model Y LR and a FE ID.4. Now ProS AWD cost the same as a model Y LR. The value proposition kind of evaporated.

22 model will get massive discount off msrp starting tommorow if you arent a dummy and ask for it.
23 models, laugh at all the sales guy trying to pull dealer added markup

 

[VW TECHNICIAN]

All franchise should be axed and transform existing dealers in state of art service centers that are able to service any EV on US market...
Dealership's are nothing more but middle man that are living out of customers who buy new vehicle's ( I hope my dad doesn't read this).

 

[truthseeker]

All franchise should be axed and transform existing dealers in state of art service centers that are able to service any EV on US market...
Dealership's are nothing more but middle man that are living out of customers who buy new vehicle's ( I hope my dad doesn't read this).

Please don’t hold back on what you think about realtors.

 

[tacomambo]

Please don’t hold back on what you think about realtors.

please don't hold back on wallstreet real estate scalpers

 

[ericy]

Reason behind is with so many decades in Auto industry.... running big huge factory requires minimum of 75-80% capacity to be running to stay positive....So what Tesla is doing is increasing volume and decrease margin, end result will be better if all key points are calculated correctly. And prime focus on EV i don't see Tesla running in any problems.
And Tesla dedicated charging network is just one of other sources of income not to mention all other assets that they are involved in.
And they had couple of good years of running higher than normal margins so now they can afford price reduction because of vertical integration and improving production costs.
I would not underestimate Tesla company ( and for one thing I give them big respect, they are inventors and not manufacturer that is buying out of the shelf hardware and making vehicles).
And any American should be proud of Tesla it is American made.
Manufacturers that produce big volumes may not have big margins, but they enjoy big business discounts on raw materials when buying in big volumes.... in car manufacturing business there is much bigger picture than just end result ( vehicle out of assembly line).

I think Tesla is just doing this so they are eligible to get the 7500$ tax credit.

I am really repelled by Tesla - mainly by their narcissistic CEO who is injecting himself into all sorts of things that he knows nothing about.

 

[Dr.Sparky]

Chevrolet dropped the price of their Bolt a while ago because sales dropped when the tax credits expired. Now that the $7500 credit is back the greedy dealers are adding Market adjustments.
Basically stealing a good portion of the buyers tax credit.

 

[NYC362]

I think Tesla is just doing this so they are eligible to get the 7500$ tax credit.

I am really repelled by Tesla - mainly by their narcissistic CEO who is injecting himself into all sorts of things that he knows nothing about.

That's my problem. If I weren't so repulsed by what Musk has become (or revealed himself to always be), I'd think about it. Now, one other issue I have, is I have a leased Tiguan. My ID.4 comes in within the next several weeks, I still owe about $1500 on my lease- my dealer has told me not to worry about that. I switch brands, that's not happening.

 

[EVready]

Honestly, having taken a couple of MY's for test drives, I'd stick with the VW. The Tesla rides like a brick.

 

[truthseeker]

I think Tesla is just doing this so they are eligible to get the 7500$ tax credit.

I am really repelled by Tesla - mainly by their narcissistic CEO who is injecting himself into all sorts of things that he knows nothing about.

There was a much cheaper way to do this. Make all Model Ys with 7 seats. It would’ve cost Tesla maybe $1,000 extra per Model Y, and they would harvest $7,500. Instead, Musk lowers the price by $13,000. There is much more to it than trying to harvest the tax credit. This is war that he has just declared on the competition. I don’t understand how VW, Ford, Hyundai, and Kia can sell their CUV/small SUV EVs after this.

 

[Spin]

There was a much cheaper way to do this. Make all Model Ys with 7 seats. It would’ve cost Tesla maybe $1,000 extra per Model Y, and they would harvest $7,500. Instead, Musk lowers the price by $13,000. There is much more to it than trying to harvest the tax credit. This is war that he has just declared on the competition.

That could cost them sales. Some people want only 5 seats.

 

[truthseeker]

Next move: Herbert Diess is appointed the CEO of Tesla. (my prediction).

 

[smile6]

While I am enjoying my Pro S AWD, if I know Tesla would drop Model Y long range by 13K, I would wait 3 weeks and get the Model Y. I test drove and they both have pro/con, however the long range will win me over if the price of both is around the same. I definitely think this will hurt ID4, IONIQ, Mustang, and other EV sales in the short term (until March when the federal tax credit is defined)
My daughter was considering an ID4, now she will go for Tesla.

 

[macb00kemdanno]

That could cost them sales. Some people want only 5 seats.

That doesn't make sense, though... you're not LOSING anything and it's the same vehicle -- just don't put the third row up if you don't want to use it. Not everyone that buys a three-row crossover uses the third row all the time. They just fold it down and enjoy the larger cargo area.

 

[smile6]

... There is much more to it than trying to harvest the tax credit. This is war that he has just declared on the competition. I don’t understand how VW, Ford, Hyundai, and Kia can sell their CUV/small SUV EVs after this.

Totally agreed, Tesla drops a big 13K while VW, and Ford are raising prices and Hyundai/Kia dealers are marking up.

 

[Lawbradoodle]

Folks should keep in mind too that Tesla is doing this knowing Equinox and Blazer are coming online soon and pose a major threat to Model Y supremacy.