Are you a CyberTruck reservation holder who made multiple reservations and why?

[anionic1]

I think it's mostly a running gag, like John K saying they should skip orders before his ^-^

I hope they won't have to raise prices, but I expect the inflection point will be orders before last summer, when they erased the price expectations. Hopefully, they'll actually be able to lower prices when they get to those.

-Crissa

There is no way anyone can expect them to hold pricing for that many years out. Current crazy escalation and inflation aside. They have a couple million CT orders. It could take them 8 years to fulfill them if most are real. They aren’t holding prices for 8 years.

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[RMK!]

With great engineering , unprecedented manufacturing efficiency, no dealer network, no advertising or marketing costs, Tesla is only vulnerable to labor and materials cost increases. Being as they have a 3X min profit margin delta over virtually every other vehicle manufacturer (ICE or EV) the only price pressure is demand which is obviously great.

To meet that demand, Tesla will need to expand production which in the huge Giga Texas plant seems to be very doable. With more lines, Giga Texas should be able to meet the current and future North American demand. If there is sufficient demand outside of North American, the Shanghai and Berlin Plants could add CyberTruck which could support the huge US market and address potential foreign markets.

WIth Ford and GM adding more EV Trucks to their lineups others will follow. That will almost certainly dilute the US EV truck market and Tesla should be cautious about over expanding. If the CT is a good as it appears it will be, they can relatively quickly ramp up production in a number of ways. It's all good for Tesla now and they seem to have a good strategy for moving forward.

 

[Crissa]

There is no way anyone can expect them to hold pricing for that many years out. Current crazy escalation and inflation aside. They have a couple million CT orders. It could take them 8 years to fulfill them if most are real. They aren’t holding prices for 8 years.

Why?

They reduced prices over the first three years of production of their other cars.

-Crissa

 

[anionic1]

Why?

They reduced prices over the first three years of production of their other cars.

-Crissa

I would like to see your references on that.

 

[Crissa]

I would like to see your references on that.

https://www.google.com/search?q=tes...lnt&tbs=cdr:1,cd_min:1/1/2018,cd_max:1/1/2020

-Crissa

 

[Sirfun]

There is no way anyone can expect them to hold pricing for that many years out. Current crazy escalation and inflation aside. They have a couple million CT orders. It could take them 8 years to fulfill them if most are real. They aren’t holding prices for 8 years.

I've said it before, and I'll say it again.

Prices are based on what people will pay.

This is true with almost anything in life. Tesla as an example, has so much demand, that people will pay higher prices than they did years ago. If you look back historically, Tesla prices went down many times. Especially on Model S & X because they hadn't updated the design for several years and demand was going down. This last quarter, Tesla reported 30% margin on their vehicles. With these types of margins, Tesla is sitting in the cat bird seat! They have tons of room to raise and lower prices based on what people will pay. Or whatever strategy they want.

I agree with you that there is virtually no pressure to reduce/or maintain prices of the Cybertruck for many years to come. But I do think historically, Tesla has honored prices they had stated. I think that's why they stopped stating a price on the reservation page awhile back. Tesla could be planning on honoring the previous prices stated at the time of reservation, but those reservations that were made while no price was stated have a very good chance of being higher just because of demand. And also Tesla could feel like that would be a way to recover from honoring prices with a lower margin while they go through the reservations.

 

[RMK!]

Ahh the mystery and magic of the google machine;-)

Tesla did not reduce prices because they had to. WIth Tesla vehicles extraordinary demand and profit margins, they have the latitude to do price adjustments (up or down) whenever they choose for whatever reason.

There are strategic advantages to having affordable EV's and Tesla wants to sell millions of cars each year so, they will need models that are priced to facilitate that goal.

 

[anionic1]

https://www.google.com/search?q=tesla+lowers+price+on+model+3&sxsrf=ALiCzsbDJkiT3ZPYLMdxSe25bpWhh3bN4g:1651596959463&source=lnt&tbs=cdr:1,cd_min:1/1/2018,cd_max:1/1/2020

-Crissa

You're stretching your argument a lot here with this notion of "cuts". Around when Tesla was losing its federal tax credit there were some very minor reduction often associated with other model increase or option increases. Here is a very robust history of pricing changes. The deducts pale in comparison to the adds over the last couple years. My argument still stands. If you want to believe they are going to hold 2 to 3 years and upwards of 2 million orders at the 4 year old price then have fun.

 

[Crissa]

You're stretching your argument a lot here with this notion of "cuts". Around when Tesla was losing its federal tax credit there were some very minor reduction often associated with other model increase or option increases. Here is a very robust history of pricing changes. The deducts pale in comparison to the adds over the last couple years. My argument still stands. If you want to believe they are going to hold 2 to 3 years and upwards of 2 million orders at the 4 year old price then have fun.

"The last couple of years" is doing alot of heavy lifting.

That's the part where they've been raising their margin, not lowering it.

-Crissa

 

[SparkChaser]

8% of inflation is based in wage increases. Profit margins are making 56% of inflation. The remainder is supply lines.

 

[RMK!]

Obviously, Tesla doesn't behave like traditional auto manufacturers so their future behaviour and decisions are not definable by any existing metric. We own 2 Tesla's, mine is the Model Y. When I purchased in June 2021, the price was $56,290. It is now 1 year out for delivery and the price of a similarly equipped MY LR is 66,940. If were to sell mine now, the prices on Tesla's site for my 2021 Model Y as a used car with only 8K miles on the ODO is in excess of $75,000! That car has the best short term investment gain ever!

This demonstrates the huge demand and thus the price increases which were designed, in large part to slow down that demand. It can only hurt Tesla to have 100's of thousands of orders unfulfilled for a year. Obviously, the price increases since I ordered haven't slowed demand but when all the current plants are running at full capacity and delivery times get back to something reasonable (60-90 days), then I'm certain prices will flatten or most likely decrease to a more competitive level .

Remember, good quality Chinese built EV's are coming (Tesla showed them how to do it) and they will be aggressively priced. Based upon the best manufacturing approaches, supply chain maximizations and simply great technology, Tesla has the margins to allow them to be very competitive in any market.

Hang in there folks, The CyberTruck will be amazing and the price will be reasonable despite current trends.

 

[anionic1]

I've said it before, and I'll say it again.

Prices are based on what people will pay.

This is true with almost anything in life. Tesla as an example, has so much demand, that people will pay higher prices than they did years ago. If you look back historically, Tesla prices went down many times. Especially on Model S & X because they hadn't updated the design for several years and demand was going down. This last quarter, Tesla reported 30% margin on their vehicles. With these types of margins, Tesla is sitting in the cat bird seat! They have tons of room to raise and lower prices based on what people will pay. Or whatever strategy they want.

I agree with you that there is virtually no pressure to reduce/or maintain prices of the Cybertruck for many years to come. But I do think historically, Tesla has honored prices they had stated. I think that's why they stopped stating a price on the reservation page awhile back. Tesla could be planning on honoring the previous prices stated at the time of reservation, but those reservations that were made while no price was stated have a very good chance of being higher just because of demand. And also Tesla could feel like that would be a way to recover from honoring prices with a lower margin while they go through the reservations.

It's likely that Tesla had 2 million preorders prior to removing the pricing. That's at least 4 years of production. So you really believe they will hold the prices from 2019 until around 2027. Not likely. I really believe they will either get out of honoring any prices by never offering the same variants in the original order. ie. there will be a dual motor standard range, dual motor long range and the quad motor long range. With the deviation in the dual standard range being the improvements of 4 wheel stearing etc. So Tesla can require everyone to select new options and pay the new number. Or they may hold the number for a year for the first 50,000 then increase it. There is absolutely no way without a unnecessary hit to their profit margin that they will sell the CT near their cheapest model 3.

Even if they increase the price most people will understand and the demand to get one will be off the charts for the next 3 years at least.

 

[Ogre]

It's likely that Tesla had 2 million preorders prior to removing the pricing. That's at least 4 years of production. So you really believe they will hold the prices from 2019 until around 2027. Not likely. I really believe they will either get out of honoring any prices by never offering the same variants in the original order. ie. there will be a dual motor standard range, dual motor long range and the quad motor long range. With the deviation in the dual standard range being the improvements of 4 wheel stearing etc. So Tesla can require everyone to select new options and pay the new number. Or they may hold the number for a year for the first 50,000 then increase it. There is absolutely no way without a unnecessary hit to their profit margin that they will sell the CT near their cheapest model 3.

Even if they increase the price most people will understand and the demand to get one will be off the charts for the next 3 years at least.

Batteries are the single biggest cost component of an EV. Tesla just shaved… about 50% off the cost of batteries.

Paint is expensive. Tesla eliminated it.

No idea how close Tesla can get to making the Cybertruck at M3 prices. But when people use absolutes I cringe.

Tesla put a lot of thought into their pricing, I doubt it was done whimsically.

 

[anionic1]

Batteries are the single biggest cost component of an EV. Tesla just shaved… about 50% off the cost of batteries.

Paint is expensive. Tesla eliminated it.

No idea how close Tesla can get to making the Cybertruck at M3 prices. But when people use absolutes I cringe.

Tesla put a lot of thought into their pricing, I doubt it was done whimsically.

Right, a lot of thought into their pricing.

 

[Sirfun]

A little trip back in time to 2019, revealed this Price list for Model 3's a little before the Nov. 21 2019 reveal of the Cybertruck. Tesla came out with prices for the CT, estimating that they would start selling the $39,900 single at the end of 2021, and the AWD models weren't even slated to come out until late 2022. They had to know at those prices there was a very good possibility for huge demand. So, to argue that Tesla won't sell CT's at less than Model 3's doesn't sound that far-fetched. They were assuming they could build the CT for less, in 2019. At that time, a lot of us were arguing that it was strange that Tesla would possibly be cannibalizing their own vehicle sales way back then.

Tesla Model 3 offer in the U.S. as of November 1, 2019

• Standard Range RWD (not listed, price from summer): $34,725
  ($35,400 MSRP + $1,200 DST - $1,875 federal tax credit)
• Standard Range Plus RWD:$38,815
  ($39,490 MSRP + $1,200 DST - $1,875 federal tax credit)
• Long Range AWD: $47,815
  ($48,490 MSRP + $1,200 DST - $1,875 federal tax credit)
• Performance LR AWD: $56,315
  ($56,990 MSRP + $1,200 DST - $1,875 federal tax credit)

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