Crissa

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I am quoting about $2,000,000,000 in construction this year and it’s all going up at least 15%. There is no reason the CT would be exempt and all the other Tesla vehicles have gone up at least that much. It is going up.
Tesla vehicles went up because demand did. Not because costs went up.

If costs went up, profits per car would have gone down. They've gone up, instead.

-Crissa

Also, Tesla would have bought the majority of the raw materials before they announced the truck. Otherwise they couldn't guess the price accurately.
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HaulingAss

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Tesla vehicles went up because demand did. Not because costs went up.

If costs went up, profits per car would have gone down. They've gone up, instead.

-Crissa
Good points, I wish people would try to stay grounded in reality. The economics of construction and auto manufacture are two entirely different things. The raw materials in the average car only cost $4,000-$5,000 (and that's after recently nearly doubling). Tesla has been averaging margins on autos around 23% recently - that's after the raw materials went up by nearly 90%. Since then, prices have started to come down. 23% margin on a $50K truck is $11,500.

Tesla sells it's FSD software for $10K. I wonder what would happen to FSD prices if the raw materials doubled again? Oh, that's right, software has no raw materials!
 

Crissa

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I would argue that caffeine is the raw resource that generates software lol
Ugh, my spouse was up all night doing four dimensional math so, yeah.

Tho her drugs of choice are fine loose leaf tea and Coca-Cola. She's old-school. Drinks one like water and the other for bursts.

-Crissa
 

initintel

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Tesla vehicles went up because demand did. Not because costs went up.

If costs went up, profits per car would have gone down. They've gone up, instead.

-Crissa

Also, Tesla would have bought the majority of the raw materials before they announced the truck. Otherwise they couldn't guess the price accurately.
Inflation.
 

Nolacyber

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Crab walk won’t do much if I’m actually towing something. I can see getting in deep if you crab walk your half million dollar boat into a swamp.
 

Ogre

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Inflation.
Doesn’t matter if you have a contract in place.

That is why manufacturers make long term contracts.

Suppliers get a guaranteed buyer at a guaranteed price.

Buyers get a guaranteed source at a guaranteed price.

Sometimes the price isn’t 100% fixed, contracts vary a lot.
 

CyberCFP

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Tesla vehicles went up because demand did. Not because costs went up.

If costs went up, profits per car would have gone down. They've gone up, instead.

-Crissa

Also, Tesla would have bought the majority of the raw materials before they announced the truck. Otherwise they couldn't guess the price accurately.
And, we don't really know what the demand is for the Cybertruck until people start getting the calls to buy/finance the cars. It wouldn't surprise me to see half the reservations request a refund on their deposit.
 

firsttruck

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And, we don't really know what the demand is for the Cybertruck until people start getting the calls to buy/finance the cars. It wouldn't surprise me to see half the reservations request a refund on their deposit.

Even if only 50% of the 1 million+ reservations turned into paid orders (500K +) that would still be world record by far.


------------------------------------


Ford Bronco racks up 165.000 pre-orders in 3 weeks, highest below Tesla Model 3 and Cybertruck
By Matt Gasnier
August 14, 2020
e https://bestsellingcarsblog.com/202...ks-highest-below-tesla-model-3-and-cybertruck

.....
The Ford Bronco ranks third most successful launch in automotive history…

Within three weeks of its July 13 unveiling, more than 165.000 people reportedly placed $100 online deposits to order one of the three versions of the new Ford Bronco, generating interest unseen since the launch of the Tesla Model 3 back in 2016. According to Ford, customer response to the reveal of three all-new Bronco models has been “unprecedented” in Ford history, which for once is not PR fluff but a correct assertion as we’ll see further down. The company originally intended to build 2.000 specially marked “First Edition” models, but has now increased this figure to 7.000.

The Tesla Model 3 generated 373.000 online pre-orders within a month in 2016.

Originally marketed from 1966 to 1996, the Bronco nameplate quickly reached cult level in the US, and Ford executives say customisation and personalisation are key to the marketing and promotion of the new Bronco Two Door, Bronco Four Door and smaller Bronco Sport. To this end, more than 200 accessories already are in inventory for installation at either Ford assembly plants in Wayne, MI, where the body-on-frame Two Door and Four Door models are built, or in Hermosillo, Mexico, which is building the unibody Bronco Sport. According to Wards Auto, Ford is also returning the Bronco to off-road racing by participating in the Baja 1000. The original Bronco won the Baja back in the 1960s.

The Tesla Cybertruck triggered 250.000 online pre-orders within ten days in 2019.

The 165.000 pre-order figure unofficially positions the Bronco as the most most anticipated SUV in automotive history and third model overall. It trails only the Tesla Model 3 which generated 373.000 orders within one month of its unveiling on March 31, 2016 and the Tesla Cybertruck which reached 250.000 orders within ten days of its unveiling on November 21, 2019. Although pre-orders are definitely not confirmed sales, which is why we mostly refrain to report these figures, the Tesla Model 3 has gone on to sell over 500.000 units globally as of March 2020, so these extravagant pre-order figures in 2016 proved to be verified “in the flesh”.
 

TyPope

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Crab walk won’t do much if I’m actually towing something. I can see getting in deep if you crab walk your half million dollar boat into a swamp.
Crab walk will be awesome when backing a trailer! You won't ever have to get the front end back around because the truck can stay straight while pushing to the side. Man, it's going to make backing in tight quarters so much easier. I can't wait.
 

initintel

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That's not inflation.

Inflation is sustained price increase over a broad range of products and commodities. If it were inflation, Tesla's costs would have risen faster than their prices.

-Crissa
Check on the definition of inflation again, because what you stated is not correct. Also the fed reported 6.8% inflation.. which is the highest it’s been in decades.
 

Crissa

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Check on the definition of inflation again, because what you stated is not correct. Also the fed reported 6.8% inflation.. which is the highest it’s been in decades.
Noted, you didn't manage to contradict the definition. Also, not true.

And a month of inflation - after having deflation - isn't unusual. Nor is that how inflation is calculated. One month of inflation doesn't make annual inflation '6.8%'. It makes it under 5%.

Lastly, the Model Y increased in price by 20%. That's inflation to you, but it's pure profit to Tesla. It didn't go up because they couldn't make them at a lower price - it went up because more people wanted them than they could make.

If this is sustained demand, it'll turn into inflation, yes. But that doesn't make the price increases because of inflation.

You have cause and effect backwards here.

-Crissa
 

initintel

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Noted, you didn't manage to contradict the definition. Also, not true.

And a month of inflation - after having deflation - isn't unusual. Nor is that how inflation is calculated. One month of inflation doesn't make annual inflation '6.8%'. It makes it under 5%.

Lastly, the Model Y increased in price by 20%. That's inflation to you, but it's pure profit to Tesla. It didn't go up because they couldn't make them at a lower price - it went up because more people wanted them than they could make.

If this is sustained demand, it'll turn into inflation, yes. But that doesn't make the price increases because of inflation.

You have cause and effect backwards here.

-Crissa
I understand you’re a fan of Tesla. I am as well. However, I am also a critic of them when required. Same thing when it comes to economics. I understand demand is high, not just for teslas, but even for used cars. I acknowledge the fact that there’s a supply chain shortage as well. A lot of that is due to bad policy.

That said, inflation isn’t helping things. Denying that inflation exists, or even playing it down as transitory (making it a back burner issue) doesn’t make it not real either. Inflation is not going away if rates don’t rise. Inflation impacts overall purchasing power, creates progressive increases on all products and services which is clearly evident, if one were to just look around themselves.

The solution involves raising the rates, re-thinking the JIT supply chain, and cutting down on the printing of trillions of dollars. There is a lot of rosy colored glasses being worn, thinking that the value is higher, when it’s not. That will prove to be painful when the market begins to correct.

I’m going to drop a few links from reputable sources.

https://amp.theguardian.com/busines...on-rate-rise-2021-highest-increase-since-1982

https://ycharts.com/indicators/us_inflation_rate

https://www.marketwatch.com/amp/story/coming-up-u-s-consumer-price-index-for-november-11639142278
 
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