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

[SparkChaser]

MSRP is the big three spin on a price that the dealer manipulates for profit based on demand. So it is not really a good comparison in this case. I recall the Miata and loving the idea of 16k sports car. They came out at MSRP of 16k but dealer jacked it up to 35k. Killed the market for me and many others.

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[Deleted member 3316]

This is not true.

Demand is a fluctuating mix of desire, knowledge, need... price sensitivity is only a part of it.

First impressions stick. If the first impression is that it's an unaffordable toy, that is going to seriously bite into the pool of demand.

-Crissa

??‍ until it’s not…

 

[Deleted member 3316]

MSRP is the big three spin on a price that the dealer manipulates for profit based on demand. So it is not really a good comparison in this case. I recall the Miata and loving the idea of 16k sports car. They came out at MSRP of 16k but dealer jacked it up to 35k. Killed the market for me and many others.

Yep, greed breeds false economies.

Tesla is not greedy but that doesn’t mean they’ll allow their lack of a stealership dealership network to be supplanted by scalpers, flipper, parasites people engaging in arbitrage by pricing their products much lower than a market clearing price.

 

[Crissa]

??‍ until it’s not…

Apple isn't always the most expensive for the hardware, let alone software, and yet, it's considered more expensive.

Doesn't matter they made the most cost-effective all-in-one, rack server, and laptop of their times... people still said they were too expensive. They charged less for their office suite, and nothing for their operating system, and still they were considered too expensive.

First impressions stick.

-Crissa

 

[TBONO]

Apple isn't always the most expensive for the hardware, let alone software, and yet, it's considered more expensive.

Doesn't matter they made the most cost-effective all-in-one, rack server, and laptop of their times... people still said they were too expensive. They charged less for their office suite, and nothing for their operating system, and still they were considered too expensive.

First impressions stick.

-Crissa

Not sure how much that applies to automobile purchases though.

When people are ready to buy. They look at what is available in their budget range for the product category at that point in time

and that point in time is usually may be a couple weeks to a month tops for most buyers, when they start the buying process.

If expensive higher end options now hit the buyers radar. They will consider it. If there is expensive long-term ownership, they will factor that in so for example, maybe a European car is now in their budget that has been discounted. However, they will factor in depreciation, reliability and maintenance, which might make it more expensive overtime than the Japanese car

an EV that was out of their budget at eg $65,000 available for $45,000
I think people will jump all over it

Similar in other industries, when people see brand-name clothing on sale, they see it as a deal.

 

[Roy2001]

M3 was supposed to be $35k, now it is $42k. So I assume 100kWh 250 mile bersion starting price could be $45k-48k.

 

[Roy2001]

??‍ until it’s not…

Apple does not make low end cheap products or compromises. If other manufacturers make the same quality products, the cost would be at least same for hardware, no need to mention the high quality software.

 

[WHIZZARD OF OZ]

M3 was supposed to be $35k, now it is $42k. So I assume 100kWh 250 mile bersion starting price could be $45k-48k.

Numbers show $49,999.99 .... Single Motor if Tesla build it.

People gonna jump on it.

 

[Deleted member 3316]

Apple does not make low end cheap products

Thanks TBONO

Not sure how much that applies to automobile purchases though.

When people are ready to buy. They look at what is available in their budget range for the product category at that point in time

If the first impression is that it's an unaffordable toy, that is going to seriously bite into the pool of demand.

This was what I was replying to @Roy2001

 

[Deleted member 3316]

Numbers show $49,999.99 .... Single Motor if Tesla build it.

People gonna jump on it.

Well the early reservation holders will… how much is a non reservation holder going to be willing to pay?

 

[Deleted member 3316]

an EV that was out of their budget at eg $65,000 available for $45,000
I think people will jump all over it

Looking at the brand conquests for Model 3/Y it highly likely consumers are going to Tesla stretch to get that Tesla smile.

 

[Crissa]

I never got that. I don't get that in my current Model Y.

"Your mileage may vary."

-Crissa

 

[Crissa]

When people are ready to buy. They look at what is available in their budget range for the product category at that point in time

This is how a rational buyer operated. Yes, when I look for a vehicle I try to find the best MPG, look at seats, cargo space, warranty... And then balance that with my desire for performance. What tasks it needs to do. I do general open searches of what's available.

The vast majority of buyers are not rational in that way. They only look at what they know, trust, what their previous impressions were.

And even I'm limited - I can't search for what I don't know exists. I wouldn't have looked for the Ducati for my spouse because the list prices were too high. It wasn't on our list. It wasn't until we ended up at a dealer that couldn't sell us the Honda we wanted - because of monopoly contracts - that we even looked at the Ducati. And they gave a price firmly inside our budget.

But if we hadn't shown up for that Honda? We would've skipped that dealer, that model.

-Crissa

 

[TBONO]

This is how a rational buyer operated. Yes, when I look for a vehicle I try to find the best MPG, look at seats, cargo space, warranty... And then balance that with my desire for performance. What tasks it needs to do. I do general open searches of what's available.

The vast majority of buyers are not rational in that way. They only look at what they know, trust, what their previous impressions were.

And even I'm limited - I can't search for what I don't know exists. I wouldn't have looked for the Ducati for my spouse because the list prices were too high. It wasn't on our list. It wasn't until we ended up at a dealer that couldn't sell us the Honda we wanted - because of monopoly contracts - that we even looked at the Ducati. And they gave a price firmly inside our budget.

But if we hadn't shown up for that Honda? We would've skipped that dealer, that model.

-Crissa

That is awesome. You got a Ducati!

Regarding general automotive purchasing, especially an EV buyer, I’d argue most buyers are rational will see all the options at the time of purchase, as it is the largest spend made by most household aside from housing.

In your case, you still ended up with a Ducati just in a more extended process
where most will Google search of top motorcycle models between $X-Y which show all the options

 

[Ogre]

There is no way Tesla is happy when the line gets huge. Part of being a company is getting customers your products. I wasn't saying commitment to purchase was keeping prices high though. I was saying that the increase in production output is what is keeping the line short because someone else said we can Guage demand by the length of the wait to get a car.

The line **is** long.

There are 2 ways they can reduce it.

• Deliver trucks as fast as possible.
• Raise prices so 90% of pre-orders cancel. Then lower prices again so you can actually sell trucks.

Rivian tried the second tactic… worked a charm.

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