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· Living the Dream, Driving the Future!
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Now let's imagine the demand for a sub $35k car. People want EV but they have to be more affordable.
So buy used maybe? Great deals right now, older S's Model 3 and even Y's now under $40k used.

Kinda tired of the "people want" argument.... go ask Lexus, BMW, MB etc. for a sub-$35k top tech EV then.

Tesla hasn't had the capacity for years now to keep up with demand for $40-60k vehicles, let alone anything cheaper and higher volume.

"At any rate, Tesla's average transaction price rose from $63,263 in January to $65,837 in February."
 
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Now let's imagine the demand for a sub $35k car. People want EV but they have to be more affordable.
If it were that simple, these would be selling like hotcakes.

 

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@NJturtlePower There's persistent rumors in China that Tesla is working on a less expensive model "1" or "2" for the Chinese market. If that turns out to be true I would not be surprised to see them in Europe soon after and maybe in North America.
 

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If it were that simple, these would be selling like hotcakes.

Yes but they're not Tesla. There's are reason why people buy the Mercedes C series or a BMW M1. The brand image is important.

I like the EUV.
 

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Kinda tired of the "people want" argument.... go ask Lexus, BMW, MB etc. for a sub-$35k top tech EV then.
There is a small issue with that statement: Tesla is supposed to be trying to bring EV's to mainstream, not becoming more exclusive. The companies you listed are all about exclusivity and keeping the prices high enough so not everybody can have one. If everyone can have a BMW, MB, or Lexus, that dilutes the brands so they are no longer exclusive.


If it were that simple, these would be selling like hotcakes.
Nevertheless, I believe Tesla should at least design and announce a lower priced EV right now. It's going to take them 3-5 years to actually get it to market anyway (ala Cybertruck), but it will put all other manufacturers on notice that they had better start making their own before Tesla can start building one. By the time that 3-5 years comes around, Tesla will only hopefully have a piece of a larger pie of lower priced EV's.
 

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Thank you for your message. I've been trying to call Tesla without any luck
IF this was me, I would be filing a complaint in small claims court, and defend myself. Where I live the limit is $10K. Not quite the price reduction but you lost the first $7500. Tesla definitely jerked you around and put in you in bad situation. Let them send some suits to defend themselves.
 

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I believe Tesla should at least design and announce a lower priced EV right now.
I’m personally exhausted of Tesla’s announced and unreleased products.
 

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What’s interesting is that I’m back to recommending Teslas after the recent price drop (along with the EV credit, they’re very price competitive). Issue is the few people that I knew that were waiting on reasonable pricing are now wondering if there’ll be any further drops.
 

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What’s interesting is that I’m back to recommending Teslas after the recent price drop (along with the EV credit, they’re very price competitive). Issue is the few people that I knew that were waiting on reasonable pricing are now wondering if there’ll be any further drops.
I hope so! But realistically I think it completely depends on where the order queue goes from here. If there are more vehicles being made than orders, or even if it settles and breaks even, prices might go down some more in a few months. If we go back to a year long wait, prices might go back up some. A few months' wait will probably see the prices frozen for a while until production passes it again.
 

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Another semi-reasonable way is that people are applying for financing when their car is ready for delivery and being rejected because the banks have locked down the financing market against riskier applicants, or are asking for much higher payments or down payments. We probably would have heard a lot about that if it were the case, but who knows.
Interest rates play a big role in consumer psychology. The fact auto financing is getting more expensive would play a big role in whether someone makes a reservation.

6 months ago, I financed $40k on a Mustang Mach E at 2.25% APR. On my new Model Y, the best I've been able to do is 4.5%.

I thought that was bad until I read the average APR on an auto loan right now is 10%. Might take a 20% discount to get past that number.
 

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...are now wondering if there’ll be any further drops.
Reuters published an article just two months ago showing that Tesla was making almost $10k profit per vehicle. So I was quite surprised when I saw prices dropping by as much as $13k for the Ys! I'm sure that $10k per vehicle average was actually held back due to the Berlin and Austin plants still struggling to get production ramped up. But given the magnitude of this drop, and just how close it is to the reported profit per vehicle, I wouldn't expect there to be another drop any time soon.

The Model 3 only dropped by $3k. I think this reflects the extra cost required to put it together since it doesn't yet have the Model Y's large castings. Those castings save a LOT of stamping and welding steps in the production pipeline.

 

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Berlin and Austin plants still struggling to get production ramped up.
Is there any indication they’re not still struggling?
 

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Is there any indication they’re not still struggling?
I think these price reductions are the best indication. Dropping prices has increased demand, indicating that Tesla thinks they can now meet this demand.

It's kind of the opposite of what happened in 2022. Production was down due to supply issues and the waitlist was over 6 months out. Tesla started increasing prices to bring down demand.

It would be good to find other evidence to support my conclusion. :)
 

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I think these price reductions are the best indication. Dropping prices has increased demand, indicating that Tesla thinks they can now meet this demand.
Neither factory though is producing as many as they could. But I think the primary constraint there, especially in Austin, is still supply chain keeping up - though not third-party this time, their own supply chain. Evidence for that is they're supposedly building a facility in Houston (I think?) to supply stuff like assembled batteries and drive units, suggesting that either it's taking too long to get them from wherever they are coming from now, or storing enough of them in Austin would impacting production space too much.
 

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Anyone else think that these price drops signify imminent changes coming; possibly giga castings, 4680 cells, radar comeback, new paint colors, perfect panel gaps, etc? Hype up the price, then hype up new features later on.

Or maybe Tesla’s just prepping for a worsening economy?
 
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Interest rates play a big role in consumer psychology. The fact auto financing is getting more expensive would play a big role in whether someone makes a reservation.
That's also because the majority of people find the cash cost of a car to be insurmountable, and have to break it into how much can I pay per month to be able to afford it. If interest costs goes up, so does the monthly payment, and by large amounts on a $50k+ car. So people who have to finance look at that number and run away.
 

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Or maybe Tesla’s just prepping for a worsening economy?
I'm not sure that's the case, because the proper answer to preparing for a worsening economy (and drastically falling car demand) would be to reduce production and lay off workers. Tesla is still hiring and increasing production, which would be considered a stupid thing to do on the eve of a major recession.
 

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i have recently became Tesla model Y owner and extremely disappointed with the recent announcement of price reduction by 13k. Have asked sales team if there is price protection policy within 30 day window and answer was NO.. os there a petition to send message to Tesla to do something about it?
I remember when I bought mine in May 2022, I was so pissed off that I lost the $250 deposit because I wanted to immediately change getting the M3 to the MY and they wouldn't refund it literally 10 minutes later. Thats peanuts compared to losing the $7500 tax credit. [politics removed]
 
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