More Tesla price cuts === cheaper Cybertruck (6 oct)

[Ogre]

So back to the pricing discussion of this thread: are the launch prices realistic/ profitable when the only competition is the Lightening, more expensive and documented by Ford as losing big $$?

Musk said outright it would be impossible for Ford & others to release a commercially viable/ affordable truck and that making an expensive truck would be easy.

Our primary challenge is affordability. Creating an expensive truck is relatively easy.

If it is extremely hard to do so for Tesla, despite our much greater economies of scale & better technology, then it is damn near impossible for others.

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[TBONO]

Musk said outright it would be impossible for Ford & others to release a commercially viable/ affordable truck and that making an expensive truck would be easy.

He also said prices would be higher than 2019 launch.

So why would they be materially lower than the only competing product (Lightening) that’s loosing money? We know Tesla isn’t going to dilute their margins with CT, stock would tank.

 

[Deleted member 3316]

He also said prices would be higher than 2019 launch.

So why would they be materially lower than the only competing product (Lightening) that’s loosing money? We know Tesla isn’t going to dilute their margins with CT, stock would tank.

These discussions on “affordability” are all so blinkered by people’s perceptions of what that means.

Is the model 3 or Y affordable? I have a Model Y but hardly any of the people I talk to about it think AU$70k is an affordable vehicle.

If the Cybertruck is priced at the same level as Model Y millions of people will say it’s affordable and 10 of millions will say it’s out of their price bracket.

TLDR: Tesla will price Cybertruck at the limit of their capacity to supply demand at that price; Which is going to be muddied by the fact they haven’t announced any mechanism to sell to non reservation holders.

 

[TBONO]

These discussions on “affordability” are all so blinkered by people’s perceptions of what that means.

Is the model 3 or Y affordable? I have a Model Y but hardly any of the people I talk to about it think AU$70k is an affordable vehicle.

If the Cybertruck is priced at the same level as Model Y millions of people will say it’s affordable and 10 of millions will say it’s out of their price bracket.

TLDR: Tesla will price Cybertruck at the limit of their capacity to supply demand at that price; Which is going to be muddied by the fact they haven’t announced any mechanism to sell to non reservation holders.

Agreed. I also believe a lot of people are out of touch of how much new trucks cost, let alone electric ones.

 

[Gurule92]

I still don’t understand what you mean by soak.

You are once again misrepresenting what I am suggesting. I am not advocating for Tesla to extract further profits reservation holders. I’m saying, if going by past behaviour that’s what they will do.

I don’t want them to, but they will, unless they adopt a different market strategy.

There it is. Lol

 

[Deleted member 3316]

Agreed. I also believe a lot of people are out of touch of how much new trucks cost, let alone electric ones.

Or the market value of them. I know that if it’s much more than a Model Y I won’t be getting it.

 

[Gurule92]

Tesla is for profit and has acted accordingly. Have we ever seen an auto company change prices so quickly and frequently? Nope.

Reservation holders don’t have a contract at a price. Just a spot in line.

How many for profit companies stay afloat by angering their most loyal customers? They will make an effort to stay reasonable but they won't be going crazy with the price or trying a new Market strategy.

 

[Deleted member 3316]

How many for profit companies stay afloat by angering their most loyal customers? They will make an effort to stay reasonable but they won't be going crazy with the price or trying a new Market strategy.

Gurule's response is a strawman fallacy. Gurule has misrepresented TBONO's argument by suggesting that they claimed Tesla is "going crazy with the price or trying a new market strategy." However, TBONO's argument was that Tesla has changed prices quickly and frequently, which is a fact that can be verified. Gurule's response does not address this point and instead responds to a different argument that TBONO did not make.

 

[TBONO]

How many for profit companies stay afloat by angering their most loyal customers? They will make an effort to stay reasonable but they won't be going crazy with the price or trying a new Market strategy.

No one is talking about crazy Tesla cybertruck pricing.

Crazy is to think this is Gina be priced way less than the competition.

For eg the AVERAGE F150 sale price is ~$60K, let alone high spec or even electric Lightening:

https://caredge.com/ford/f-150

Fun to hope, but I would bank on it. Tesla not a charity, nor money loser, nor history of being the lowest cost. And that’s a good thing.

It will be a bummer for the many enthusiasts that are priced out, but that’s the market.

 

[Ogre]

He also said prices would be higher than 2019 launch.

So why would they be materially lower than the only competing product (Lightening) that’s loosing money? We know Tesla isn’t going to dilute their margins with CT, stock would tank.

He said costs were higher and the truck price would reflect that.

That was when the Model Y LR was $65k. It’s now selling for $53k.

Cybertruck margins are not going to be low. It was designed to be affordable to manufacture from day 1. Savings on manufacturing is why they priced it where they did at launch.

 

[TBONO]

He said costs were higher and the truck price would reflect that.

That was when the Model Y LR was $65k. It’s now selling for $53k.

Cybertruck margins are not going to be low. It was designed to be affordable to manufacture from day 1. Savings on manufacturing is why they priced it where they did at launch.

That would make sense when you consider manufacturing ramped up and at scale. That is not the case nor will it be for at least a year and the reality during a ramp up, manufacturing costs are massively high.

 

[Ogre]

That would make sense when you consider manufacturing ramped up and at scale. That is not the case nor will it be for at least a year and the reality during a ramp up, manufacturing costs are massively high.

And when they are ramping up sales, margins will be lower.

.

Exactly like they have been during every single other product ramp Tesla has done.

 

[Ogre]

No one is talking about crazy Tesla cybertruck pricing.

Crazy is to think this is Gina be priced way less than the competition.

For eg the AVERAGE F150 sale price is ~$60K, let alone high spec or even electric Lightening:

https://caredge.com/ford/f-150

Fun to hope, but I would bank on it. Tesla not a charity, nor money loser, nor history of being the lowest cost. And that’s a good thing.

It will be a bummer for the many enthusiasts that are priced out, but that’s the market.

The average price of the Model Y was $65,000 last year. The price of a lot of things was extremely high last year.

This year prices have come down. Many trucks which were jacked up in price over the past couple of years are sitting on lots gathering dust. Dealerships are offering massive discounts to unload them. Every single F150 on the lot in town is discounted and up until a couple weeks ago, they had half a dozen 2022s on the lot they were offering for $8k off.

Last year’s average doesn’t mean a damned thing right now.

 

[Deleted member 3316]

No one is talking about crazy Tesla cybertruck pricing.

Crazy is to think this is Gina be priced way less than the competition.

For eg the AVERAGE F150 sale price is ~$60K, let alone high spec or even electric Lightening:

https://caredge.com/ford/f-150

Fun to hope, but I would bank on it. Tesla not a charity, nor money loser, nor history of being the lowest cost. And that’s a good thing.

It will be a bummer for the many enthusiasts that are priced out, but that’s the market.

Once again, I don’t like what you’re saying but I have to agree.

 

[TBONO]

The average price of the Model Y was $65,000 last year. The price of a lot of things was extremely high last year.

This year prices have come down. Many trucks which were jacked up in price over the past couple of years are sitting on lots gathering dust. Dealerships are offering massive discounts to unload them. Every single F150 on the lot in town is discounted and up until a couple weeks ago, they had half a dozen 2022s on the lot they were offering for $8k off.

Last year’s average doesn’t mean a damned thing right now.

Why don’t you provide some statistics instead of the” around town references”?

Are you saying the average F150 is not $60,000 per the link I provided? And you gonna get a CT for less? If so: ?

I’ve provided a link showing the average sales price. All the mark ups you are referencing are mostly ADMs not increases from the factory.

Since no one knows it’s ? Tesla gives us Ruth’s Chris at Sizzler rates.
I’m just not banking on it as there’s no precedent of such practice.

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