💰 Huge Price Cut on all new Teslas. Implications for Cybertruck pricing?

[CyberGus]

Apparently some have forgotten that a car purchased from a dealership will depreciate by about $10k as soon as you drive it off the lot

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[CyberGus]

The big question is, will this make $TSLA go up or down?

Buy or hold?

TSLA is down about 2%.

Both Ford and GM are down over 5%

 

[Qball]

The big question is, will this make $TSLA go up or down?

Buy or hold?

OBVIOUSLY any news for Tesla is bad and $TSLA will go down in price. Which answers your second question nicely, BUY AND HOLD!

Disclaimer: this is NOT financial advice and YMMV!

 

[Ogre]

Like Magic isn't it. I see why Elon doesn't like incentives. It made judging the market that much harder. The sales crash in December was difficult to manage. The March changes will be similar. I suppose it works out in the end tho.

I think Musk realizes there is no way incentives are sustainable. This is likely a $1b handout to Tesla customers this year alone. That’s on top of what is likely another $1b for manufacturing cells and packs in the US. Thats just the bits heading for Tesla. Next year it will likely be $3b combined or more.

Government bean counters vastly missed the mark on pricing the cost to taxpayers.

Highly unlikely this will last more than a couple years without a huge revision.

 

[ÆCIII]

Never have even been looking at the short term, with Tesla's long term fundamentals being so solid.

That said it's quite an irony as Tesla has always had so much untapped pricing power with their margins, that even after these price cuts Tesla margins will still be likely two or more times that of legacy auto margins on each car sold. So Tesla didn't really have to do this either, because their debt is nearly nothing so they could just hibernate if they want - whereas legacy auto must sustain a certain amount of cash flow to pay on their much more massive debts.

But I think this opening of the 'spigot' with price drops likely indicates that Tesla now feels ready to really increase their production rates.

I think this will have the corrupt MSM scrambling for verbal gymnastics to somehow depict the Tesla price cuts as negative or bad. The MSM will now have a more difficult time trying to convince the public that Tesla has low demand. Irony is that with very few exceptions, Tesla has had saturated demand even when pricing at three times the margins of many legacy auto brands.

Regardless of short term narrative sound bytes from the MSM, I think this will ultimately increase the number of Teslas seen on the roads; and then from stop-light to stop-light even more people are going to see how happy Tesla owners are just to be driving one. I don't even need to go into detailed descriptions here because every Tesla owner already knows.

This will increase interest and demand even more.

- ÆCIII

 

[Ogre]

That said it's quite an irony as Tesla has always had so much untapped pricing power with their margins, that even after these price cuts Tesla margins will still be likely two or more times that of legacy auto margins on each car sold.

Teslas competition is operating at negative margins.

 

[Cybr on]

the price cut is enough for me to seriously pulling the trigger on a 3 or Y. Even a used 3 I have my eye on with FSD. If new, not pulling the trigger on FSD.

What prices are you seeing for used 3 with fsd?

 

[Ogre]

Dillon from Electrified updates his Cybertruck pricing estimates in line with the recent pricing change. I’ve long suggested Cybertruck pricing will follow the Model Y pricing as well.

 

[John K]

What prices are you seeing for used 3 with fsd?

Search Tesla’s site, existing inventory, used, full service checked. Used prices are over the 25k used price threshold

 

[Tinker71]

I think Musk realizes there is no way incentives are sustainable. This is likely a $1b handout to Tesla customers this year alone. That’s on top of what is likely another $1b for manufacturing cells and packs in the US. Thats just the bits heading for Tesla. Next year it will likely be $3b combined or more.

Government bean counters vastly missed the mark on pricing the cost to taxpayers.

Highly unlikely this will last more than a couple years without a huge revision.

I do like the emphasis on American manufacturing. I hope congress doesn't change that part. Even if people don't qualify for the entire incentive. (which also reduces the lost tax revenue.) We need to claw back this capability. There is no better time to do it with a change in technology.

Same with solar.

 

[charliemagpie]

Whilst selling every product Tesla made, Elon slowly lured the competition to a higher price point and then he cut them off at the knees.

It could be said circumstances lead to this... I say Elon navigated here at genius level.

 

[jerhenderson]

Whilst selling every product Tesla made, Elon slowly lured the competition to a higher price point and then he cut them off at the knees.



It could be said circumstances lead to this... I say Elon navigated here at genius level.

the competition also priced based on commodity costs.... the fact this keeps being forgotten already baffles my mind.

 

[Tinker71]

the competition also priced based on commodity costs.... the fact this keeps being forgotten already baffles my mind.

The competition did

the competition also priced based on commodity costs.... the fact this keeps being forgotten already baffles my mind.

The competition did what they always do. They did the least amount of engineering and investment to bring a 'new' product to market borrowing as much from the old generation as they could and charged as much as they could get away with. Tesla has always been an uncompromising BEV.

 

[Ogre]

Whilst selling every product Tesla made, Elon slowly lured the competition to a higher price point and then he cut them off at the knees.

It could be said circumstances lead to this... I say Elon navigated here at genius level.

I think the situation just played in their favor.

There was a huge surge of demand that helped Tesla push up prices just when they needed to in order to make up for the cost of their factory.

 

[charliemagpie]

It's all about good decisions

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