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

[jerhenderson]

newsflash: prices change.

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[charliemagpie]

the prices were set due to inflation, and the prices were reset due to inflation,

All this is post Covid, and I am suggesting it is a tad out of the ordinary.

Why should Tesla provide more compensation if it wasn't in control of costs.

The blame should go to the company selling a car this week at the same price as last week, eventhough COGs have deflated.

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Bottom line its a tough situation, I can tell you that having dealt with the public in my career, it doesn't matter what you do. You can't do enough.


If there is fallout, they will go to a competitor.
Aggrieved competitors' customers will go to Tesla.

I dont get angry when the coffee is 30% off this week.

 

[Daddystired]

Got a Model Y Performance in October. Not upset one bit. I knew I would like it but not nearly as much as I have. It really does change your perspective compared to ICE.

I bet you dont regret it! I have a long range model y seven seater and I’ve beaten Mustangs 5.0/ Dodge Srts off the stop lights ? (Camaros never want to do it) and it went toe to toe against a Mercedes AMG but they walked me eventually. Still 100k vs 54k (at the time)
But hell yeah Teslas instant torque is ridiculous

 

[CybertruckAgent]

Elon just kicked all the competition in the nuts!!!!

He kicked the *IRS in the nuts. Y’all must have missed the news on this.

 

[Sirfun]

He kicked the *IRS in the nuts. Y’all must have missed the news on this.

Really, I thought he just flipped them the bird!

 

[flowerlandfilms]

People upset by the price decrease could try, oh I don't know, being happy for others instead of thinking about themselves.

 

[CyberBC]

Has anyone seen any projections on how the price drop is going to affect the 2023 earnings?

 

[charliemagpie]

My rough estimates :
8 billion new profits coming from Energy
1 billion could be from Cybertruck .. ~ 70,000 units
6 billion from < 700,000 extra cars built at Austin and Germany @ 22%

15 billion which more than double's 2022 profit.

EPS $9 to $11

The discounts are mitigated by COGS deflation, and we also gain profit from increased volumes out of the same infrastructure.

Not all cars are discounted, those that have been are still close to 2021 prices.

Plus there's the government incentives, which will take profits to the moon.

Most pundits predict profit margin's forever increasing. My estimate was always around 20% aligned with cost reductions. Basically, cost cutting reflects efficiency, not loss.

The experts Imo, are just happy to show their customers a 20% return to do business with them. Their 'professional' 2023 EPS estimates $5 to $6.

Edited :
To add, once the dark clouds clear, we may also see prices rise at some point this year.

 

[jerhenderson]

Has anyone seen any projections on how the price drop is going to affect the 2023 earnings?

that'll depend on so many things......

 

[cvalue13]

EvTrucks will never have a low demand problem.

there’s an apparent tension between “EvTrucks will never have a low demand problem” and “[but] consumers are slowing down their spending, and most Americans can no longer afford EVs, which reached an average price of $66,000 last year”

I think demand for the Lightning has softened considerably with general economic softening, exacerbated by the combination of increased MSRP, increased interest rates, and decreased tax incentives. Unless these same trends are mitigated by Tesla, the CT seems subject to the same pressures.

 

[AlDente]

When you buy a computer and get the latest, greatest machine the store has, you pay the asking price. Maybe it is even on sale. A month later a newer model comes out, it is cheaper yet has more RAM and more hard disk space. This had been my experience of computer purchases over the last 3 decades.

same shit, different day.

I have read in these very forums that a Tesla is not a car, it is a computer on wheels.

Only in Tesla forums have I ever read how prices dropping for the consumer is a personal and societal calamity of monumental proportions.

Most of the panic is from retail Investors that are spooked by any change that may cause the stock to drop. As an investor, I'm actually pleased that Tesla made this move. At this point in the game, market share is more important than short term profits. That's Elons philosophy and I concur.

Even with the discounts, Tesla is making over double the margin of other auto manufacturers and that's for their ICE vehicles. They are making nothing on their EV's so as usual, Tesla is playing 3D chess vs big auto checkers.

My last thought is the CyberTruck will priced no more than 20% above the 2019 intro prices.

 

[firsttruck]

.....
Will EvCar price cuts have anything to do with EvTruck prices?

No!

EvCar price have absolutely nothing to do with the price of EvTrucks or the demand for any EvTrucks

Tesla's sees it's primary competition as ICE vehicles not other BEVs

Tesla wants Cybertruck to compete against ICE Ford F-150/250 4-door (full-size door) Supercrew/Crewcab (and similar models by GM/Chevy, RAM). Not just Rivian or Ford Lightning EV but against high & medium priced full-size ICE pickups.

At the 2019 Cybertruck reveal, Elon made several comparisons to ICE Ford F-150 SuperCrew.

Maybe Tesla will release the expensive quad Cybertruck first but probably in 2025 Tesla will put its laser sights of the Tesla price gun in the center of $40K-60K ICE Ford/GM/RAM full-sized SuperCrew pickup market.

 

[cvalue13]

Tesla's sees it's primary competition as ICE vehicles not other BEVs
…
Maybe Tesla will release the expensive quad Cybertruck first but probably in 2025 Tesla will put its laser sights of the Tesla price gun in the center of $40K-60K ICE Ford/GM/RAM full-sized SuperCrew pickup market.

interesting point/reminder!

I’d think that really competing in those ranges would require a version of a CT that doesn’t look like a CT

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