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

[jerhenderson]

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

people won't be so hung up on the look of a legacy truck once they know the price and capabilities of a CT.

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[charliemagpie]

Long term retail investors acting like short term Investors.

The short term has its own story and priorities, and the spooked long termers have lost sight of theirs.

 

[Ogre]

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

Congress and the CBO did all the nut kicking with a bill with this massive piece of

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

Last year, their margins were 25% during the 3rd quarter. So if their costs were the same between then and now, margins would be around 10% now.

Since the 3rd quarter, production has gone from around 1000 units/ week to over 3,000 units per week at Berlin and Texas. Tesla has some fixed costs which are spread across all vehicles so as they scale up those two factories, the margins would have gotten better and better. On top of that, raw materials and shipping costs came down a lot in the 4th quarter. So their cost per vehicle is likely only marginally higher than they were in 2021 when they were selling the Model Y last time. On top of that, at the first of the year Tesla started getting IRA tax credits for manufacturing packs and cells on the Model Y.

I think their margins will be right around 25-30% this quarter and while their average selling price will be lower, revenue and profits will be up, but not quite keeping up with vehicle sales growth due to the lower pricing.

 

[Wrecker]

I placed an order for a white M3P yesterday at 2pm CST. We had planned on this in the next 12-18 months to replace our 2015 sedan, but pricing was hard not to pass up.

First time Tesla purchase. We received email confirmation but the purchase has not reflected on our Tesla account or app. I assume they may have been swamped, but not sure yet how that affects timing (delivery by 1 Mar key).

 

[CostcoSamples]

These price cuts are such an incredible flex on the rest of the industry! I think it suggests production ramp at Texas and Berlin are about to really pick up.

As for CT, I wouldn't get too excited yet. Even if production starts in June, its another 12 months before we see big production numbers. Backlog is massive. If Tesla sells CT too cheap, a secondary market will pop up and scalpers will take the profits.

 

[rlhamil]

This seems like it might have been to sell inventory with sales slow, and of course for more to take advantage of the tax break.

The Cybertruck has a huge order backlog - even if a third canceled, it'd still be huge. It's not clear they would need to cut it at all...although if they can avoid inflation increases (which from their unit profit but not volume x profit POV, that IS a cut), that would doubtless minimize cancellations.

 

[Rozonoe]

Canada will not be so lucky!

 

[WheezyLex]

I bought my car in early 2021 and paid $3,000 less for it. I didn’t get the federal rebate, but Oregon gave me a $2,500 check you can’t get now…

A good chunk of people who bought in 2021 paid less than $53k or not much more than that.

I ordered my Model 3 (Standard Range) in late 2020 and received it in 2021 (I put it on hold due to operational commitments) and am in the same boat, except for the Oregon credit - good for that state; Hawaii didn’t offer any incentives. Concurrently, FSD has gone up about $7K since I ordered, so it's evened out, despite being told by a reseller who I know from the Supercharger that FSD doesn’t weigh in at 100% when selling on the private market. (Which surprises me,, since it’s not as though software “wears out” - people are just people about it. Still better than a Tesla trade-in, so I hear, where FSD is given zero weight)!

Plus, I now owe so much less than “new,” it’s back to standard depreciation levels and I’m ok with that. Heres hoping FSD continues to go up.

—Lex

 

[Rozonoe]

Also got mine in 2021 and probably saved $20,000 so far on gas, maintenance, and headaches during road trips. It might be a good time to upgrade if FSD can be migrated...

It would be nice if present Tesla owners with FSD could have the FSD transferred to a New Tesla Vehicle. That way, Tesla could sell a new FSD to my old Tesla's new owner & I don't have to pay twice for it!

 

[Rozonoe]

Competition is coming and demand is collapsing!

Were still waiting for the competition & as far as demand collapsing, it must be on Mars!

 

[Rozonoe]

Actually the Pearl White color has several advantages. White is the safest color according to accident statistics (even in the winter) (and black is the most dangerous). White cars are much cooler in the summer (and black is the hottest). This also makes white cars more efficient (and thus have longer range) in hot weather. To add insult to injury, white paint has less pigment added and is stronger than darker colors (the darker the paint, the more pigment and less durable). Physics matters.

What about stainless steel silver?

 

[Qball]

Were still waiting for the competition & as far as demand collapsing, it must be on Mars!

Demands on mar is indeed abysmal, true fact of grave concern with no relief in sight.

 

[Deleted member 8313]

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.

Yeah right! Like his genius Twitter purchase. That was an awesome deal. And yes his circumstance contributed to a massive decline in stock price. Stop with the genius stuff already. LOL.

 

[WHIZZARD OF OZ]

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.

The pricings l've sent out before the recent 'Elon Axe' showed a close comparative to Dillon's recently updated figures( my originals were up to $5K above Dillon's far column ) however l did take the time to bring forward QUAD into 'Current Price' column: ~$80K to ~$85K probable? (previously $89,999.99) IMAGINE THAT

 

[EV130]

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

And the IRS who did not qualify the Y (5 seater) as a SUV.

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