Tesla reverses course again - raising prices, leaving some stores open

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#2
Not a good image for Tesla. As an investor, I’m disturbed by the seemingly rash decisions that must be taking place behind the scenes. Plus, I’m sure there are going to be a lot of disgruntled and distressed employees knowing they might be laid off in the near future.
 

webdriverguy

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#3
Not a good image for Tesla. As an investor, I’m disturbed by the seemingly rash decisions that must be taking place behind the scenes. Plus, I’m sure there are going to be a lot of disgruntled and distressed employees knowing they might be laid off in the near future.
Yes agree this is not good
 

Lovesword

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#4
I see a connection between this move and the overwhelming demand for the Standard Range Model 3 (Tesla has already adjusted their estimated delivery for them to 8 weeks!)
I think even Tesla underestimated the amount of people looking to buy the SR 3, which is amazing to think about and gets me very excited for Q2. My theory here is that I think they decided to keep the stores open "for now" knowing that they're going to need all sorts of logistics to deliver the high demand for the SR 3.

OR... as one of my buddies and I have discussed (tin foil hat time)... this was all planned from the outset to reduce the work force but still maintain their presence. Also create a "sale" by saying that the prices will go up on March 18th. I have one coworker that's looking to buy before that happens, so it worked.

Of course, I'm just a random dude with random opinions and ideas and have no insider knowledge or any way of corroborating any of this... just speculating and chatting. One good thing though is the stock price is up as of my typing this, so it seems to not be impacting that in a negative way.
 

AO - Pete

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#6
yeah, I agree, totally not a good look. It seems like all the decisions are still being made by Elon in isolation; that's what the board is for, to take measured decisions that align to the strategy. All this knee-jerk stuff is weird for a company of Tesla's size, never mind the stress it must be causing the employees who were on the block ,then off, now who knows.

The assumption of linearity between store numbers and the 6% discount also seems very contrived, we all know it's not that simple, and now closing half the stores doesn't really correlate to now only being able to discount the cars by half as much. Every store will have lease clauses, termination costs and all kinds of other overheads making every one different. Since nobody was expecting the 6% price cut, I still don't know why they did it; on it's own it strange, but pulling it in by half a week later is ever weirder. It might have been to goose demand, but it's a really odd way of doing it.

Even the SC v3 and Model Y announcement seem rushed; I guess Apple does this sort of thing all the time as well, but having to book short-notice travel pisses people off.

The elephant in the room seems to be that S & X can't fully leverage the v3 infrastructure; so (more tin hat stuff) are S & X coming up for a refresh, and this weird little moment is to boost sales of S & X that are already produced? There's not a lot to corroborate that theory, but from a development efficiency perspective, it must be to Tesla's advantage to get everything into the landscape aspect, and S & X have always been marketed, by Elon, as getting the new tech first. That's patently not the case when it comes to V3 charging.

There's more to this, maybe all will be revealed later this week.
 

B.Silva

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#7
I am glad they are going to keep test drives, though I suspect in a scaled back way. I am fine with online ordering. I think most people already are ordering via the website, even if at the store. The 7 day/100 mile return policy is cool but to me it doesn't replace the need for test drive. I would not have bought my Model 3 without test driving it first, even if I was given the option of returning it if I didn't like it. It's too much of a commitment without a test drive first. I am glad to see Tesla has, at least for now, made a course correction to continue with test drives.

A year ago while shopping for a new ICE SUV, I was sure I was going to buy a Porsche Macan S to replace my 2012 Audi Q5. I was happy I did a test drive, though, before ordering one. I didn't really care for it. The cargo space was much smaller than my Q5 and there were other things about the car I didn't like. I went with a 2018 Audi SQ5 instead. I'm really looking forward to the Model Y.
 

Bigriver

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#8
I see a connection between this move and the overwhelming demand for the Standard Range Model 3 (Tesla has already adjusted their estimated delivery for them to 8 weeks!)
I think even Tesla underestimated the amount of people looking to buy the SR 3...
I think the SR model 3 is a phenomenal deal. I wish I could buy dozens of them and give them to friends and family - ah, but I don’t have that kind of money. Am happy to hear the estimate is up to 8 weeks. I Had been concerned that the time estimate was only 2 weeks when they first opened it up. I thought the SR becoming available would lead to long lines and even perhaps reinstituting the need to get an invite from the reservation system. But I also thought that the advent of DVDs would put movie theaters out of business, so I’m not exactly very good at predicting the future.
 

Artdept

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#9
the "raising prices" things isjust another plow to get people to rush place orders.
another form of a cash grab.. the more they tweet, the more dire the Cash position sounds.

if they are profiting 5-10 K per car, they need to sell a lot of cars to keep the machine moving. I cannot imagine what the weekly overheard is, but probally over 10 million easy?
 

garsh

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#10
another form of a cash grab.
I don't understand why people couch things in terms like this.

"cash grab"? It's a company that continues to struggle to become long-term profitable. They know that the window for them to ramp up production and grab market share is pretty short. Eventually, established automakers will figure out how to compete if Tesla doesn't maintain a lead in EV technology. And Tesla isn't going to last unless it's profitable. So yes, they need to try to "grab cash", because that's how you pay your 10's of thousands of employees, and pay for the R&D to develop additional vehicles.
 

Lovesword

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#11
I don't understand why people couch things in terms like this.

"cash grab"? It's a company that continues to struggle to become long-term profitable. They know that the window for them to ramp up production and grab market share is pretty short. Eventually, established automakers will figure out how to compete if Tesla doesn't maintain a lead in EV technology. And Tesla isn't going to last unless it's profitable. So yes, they need to try to "grab cash", because that's how you pay your 10's of thousands of employees, and pay for the R&D to develop additional vehicles.
Oh man, did I read Artdept's post wrong...
market.jpg
 

LUXMAN

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#12
ELON has tweeted that AP/FSD prices go back to normal on Monday as well. Upgrade while you can if you were on the fence
 

FRC

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#13
ELON has tweeted that AP/FSD prices go back to normal on Monday as well. Upgrade while you can if you were on the fence
DAMMIT @LUXMAN , Thanks to you I've now got $2k less than I had 15 minutes ago! I told myself I wouldn't buy FSD until there was a tangible benefit(and I've already got EAP). Price of FSD might not go up, but I can't see it going down. I suppose my tangible benefit is that I don't have to concern myself with this decision any more!!
 

webdriverguy

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#14
DAMMIT @LUXMAN , Thanks to you I've now got $2k less than I had 15 minutes ago! I told myself I wouldn't buy FSD until there was a tangible benefit(and I've already got EAP). Price of FSD might not go up, but I can't see it going down. I suppose my tangible benefit is that I don't have to concern myself with this decision any more!!
You did the right thing. I doubt they will lower the prices for EAP/FSD again any time soon after monday
 

LUXMAN

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#15
DAMMIT @LUXMAN , Thanks to you I've now got $2k less than I had 15 minutes ago! I told myself I wouldn't buy FSD until there was a tangible benefit(and I've already got EAP). Price of FSD might not go up, but I can't see it going down. I suppose my tangible benefit is that I don't have to concern myself with this decision any more!!
Glad to help ;), but he also confirmed that there will be a hardware upgrade to AP 3.0
 

MelindaV

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#18
Glad to help ;), but he also confirmed that there will be a hardware upgrade to AP 3.0
likewise - I was going to wait a couple more weeks, but went ahead and handed over my $2180 (tax included) to tesla this morning. I always expected the hardware would be included for everyone who paid for FSD one way or another, so wasn't concerned about that. Just attempting to spread out the wear and tear on my bank card this month 😆