I think it's important to note that if Tesla reduced prices this much in such a short time, they either are banking on efficiency improvements and cost reductions or something that running stores added several thousands to the price of every car.
There's one more thing that adds a lot of relatively up-front cost: warranty costs. IF Tesla jumps on the quality train and really doubles down on initial quality (no shipping of cars with detectable and fixable defects) by eliminating them at the source (production), then margins go up and cheaper cars become more profitable. Fix service headaches by not needing service! Stop the rattles. Avoid bad paint. Double and triple check every car for problems!
It is said that warranty can cost a company 2-3x more compared to the factory. We all know tesla warranty repairs are a major problem for them.
Tesla's price drops we've seen were just all about taking the government rebate out of your pocket and putting it in theirs. It was somewhat smart. Tesla originally had the price of the cars inflated by some percentage amount of the rebate. As the rebate decreases, Tesla will give price reductions. Maybe not dollar for dollar, but that is what it is about.
I always learned to NEVER say never. Get ready, I'm fixin' to. No brand new Tesla vehicle will ever go out the door for less than $35K, NEVER! That doesn't change the fact that my P3D will probably sell for $2K less after the next Tax credit date, and $2K more at the next. Like many others, I bought early because...1) I was excited...2) I didn't want to miss out on the $7,500 credit. Reason one still has validity. Reason two, I got fooled. Oh well, too late now!
I figure the same, they will innovate and keep the car where it is. I don't see Tesla ever introducing a car below this price line either. Between the 3, Y, S, X, Roaster, Semi and the to be introduced pickup this company is busy for 5 to 7 years with no room to breathe. Others will start to fill in the lower market and there will be more competition in the upper market, but that lower market just isn't a place Tesla would ever play. They'll be like a BMW or Mercedes, their introductory car is never less than $35K. They'll leave the $18K to $35K market to the other manufactures if any of them can ever figure it out and get it right.
To add to what you said, let's not forget that Tesla took on lots of debt developing the Model 3 and other models and it needs to be repaid. The purpose of government incentives was to help this nascent industry and, considering the huge amount of money the car industry and others have poured so far for R&D, it's a great success.
I want to know if the streaming radio is now free for the life of the car on premium interiors or if you have to pay after a year as it was previously. The difference between Standard Plus and Premium (mid-range) seems hardly worth it unless you REALLY need that extra 20 miles of range.
I want to know if the streaming radio is now free for the life of the car on premium interiors or if you have to pay after a year as it was previously. The difference between Standard Plus and Premium (mid-range) seems hardly worth it unless you REALLY need that extra 20 miles of range.
I ordered the Standard Range Plus ($35k + the WELL worth it $2k package) 5 minutes after they opened up the new ordering on Wednesday February 27th at 4:00pm EST.
My Tesla account showed “delivery within 2 weeks”. One week later (now Wednesday March 6th) it still states the same. I called Tesla last night as i still don’t have a VIN assignment or a Buyers Order (needed by my Credit Union to even start the loan process). The gentleman stated he thinks that maybe it could still be here by Tuesday but wasn’t really sure. They don’t have any information on it, the timing, etc. Supposedly someone from my local store is to contact me “when it’s ready”. But it’s odd that i can’t even start the loan process until the car is ready. Lots of confusion, of course. Wouldn’t expect any less.
Anyway, i thought I’d keep everyone posted since my order was placed literally 5 minutes after the order process opened up. I’m in Charlotte NC by the way.
Yup . Same here , and I’m close to to the Fremont factory. You think based on the “s curve” they mention , people closest to the factory would get theirs first.
Something fishy is def going on. And it has nothing to do with the floods in california.
#thecashgrab
I don't even have the total amount to ask for (Buyers Order). Until i get get the total they can't create the loan process either. It is what it is i guess...
I don't even have the total amount to ask for (Buyers Order). Until i get get the total they can't create the loan process either. It is what it is i guess...
I was able to just give year make and model to my credit union to secure 2.6% without a VIN. I just took the total from the order page minus my down payment and asked for a loan of $xxx.xx. Once I had the buyers agreement we locked everything in
On a side note I'm not really upset by the price drop as I leveraged the 7500 + 2000 state so with my math I'm still ahead $950 not including the difference in tax at this point my head started to hurt chasing $1000 on a 69k purchase.
What I AM upset about is the whole process. I ordered the car in November, talked to 2 stores in NY who said because I lived 450 miles away they would deliver it to me as promised. December rolled around, they found me a car to match my spec to speed up delivery, however after the order was finalized and I had my check from the bank they said due to the year end rush they couldn't guarantee 3rd party delivery by end of 2018 for the full 7500 credit. Told them no problem I'll sign all the paperwork saying the car is mine in 2018 then bring me the car sometime in January. They wouldn't do this.
Long story short I had to take a day off of work, loose pay, wake up at 4am fly to NYC take an hour long Uber ride to the delivery center, WAIT 5 HOURS to finish the paperwork, then drive 9.5 hours home, given a car with 70% charge full well knowing I had to drive 9-10 hours home in 20F weather... Not one person would formally record the interior scratches, or paint issues at time of delivery. I did select EAP as I'd rather add it to my monthly payment then come out of pocket 7k cash later..or so I thought...
I took delivery Dec 12th. Here we are March 8th AND I'M STILL WAITING for my scratched trim pieces to be replaced. My delivery advisor promised me for WEEKS someone would reach out to figure this out. Emails via Tesla website WITH a request for manager escalation have yet to be answered months later. Had I not rushed year end purchase I'd likely still not have ordered the car yet... Then could have got full FSD instead of EAP for the same 5k. And would have probably got the performance as well. That's all I'm really upset about. Just unlock all of FSD for me...
And had I stayed waiting... I'd wait some more to see the Y and probably would have skipped the 3 and got the Y as I had to keep my SUV to haul my 100lb GSD around...I really hope this Y won't be big enough for the dog to make me feel better. Now I can't even sell the car without the 5k hit on taxes and another 5k in depreciation as someone can just buy it new for the same price granted I only have 1400 miles and all the plastic, screen protector and glovebox tag is still in place..
Don't get me wrong, I LOVE THE CAR. One of the best I've ever owned and I've owned many. My M3 is the 4th car in my driveway. I've pushed half a dozen referrals because the product speaks for itself. But the service is atrocious and I'm falling back on referring the brand as a whole. Leading us on saying better buy it now before the price goes up then reducing the price is not something I take lightly. I own my own business and customer service is #1, I don't lead my clients on. I feel there is no customer service at all with Tesla.
Thanks for listening to my rant... I'm gonna go do some launches in my freshly charged car lol
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