Honoring Original Estimated Pricing

[SpaceYooper]

I drove 20 hrs from Colorado to Michigan's U.P. last week and got in a small wreck with my truck outside Cedar Rapids, Iowa. No mechanical damage to my truck but I needed 1 new headlight, a grill, a couple small parts and it took me a couple hours to straighten my intercooler bracket out. Not gonna lie; the $500 in parts and hours of time made me contemplate trading in my previously hail damaged, (not repaired...but paid off years ago) 135k mile truck for something else. Then I thought, I can bear it for another 15k miles, but I better damn well be driving a 500 mile variant CT by this time next year.

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[Deleted member 3316]

I expect they will do the same with CyberTruck.
I did not see anything that said they increased price to stop a secondary market on the Y or 3 or even the X and S.

This is the basis of the misunderstanding I am failing horribly to articulate.

They are likely to use the same market strategy with Cybertruck as 3/Y.

There have been multiple price increases and adjustments to 3/Y to manage wait lists… they are seeking the maximum profits the market will accept. Which inhibits a secondary market. It will never stop it completely but that’s not the point. The point is to scoop up a majority of the profit available.

The point is the retail price. What is the maximum price the captive market of reservation holders can accept. If it’s too expensive what are they likely to do with their reservation? Hodl? Refund? Scalp?

Either way Tesla will retain a majority of the revenue available but what is the point of an early reservation if you can’t afford it at that early price point?

I’m suggesting I have a solution for Tesla to offer close to reveal prices but much of the forum is getting caught on the vagaries of the above conversation. (And regularly mischaracterising my posts as being the opposite)

Go here if you think Tesla is not going to honour reveal pricing and would you like them to.

 

[Crissa]

This is the basis of the misunderstanding I am failing horribly to articulate.

They are likely to use the same market strategy with Cybertruck as 3/Y.

There have been multiple price increases and adjustments to 3/Y to manage wait lists… they are seeking the maximum profits the market will accept. Which inhibits a secondary market. It will never stop it completely but that’s not the point. The point is to scoop up a majority of the profit available.

The point is the retail price. What is the maximum price the captive market of reservation holders can accept. If it’s too expensive what are they likely to do with their reservation? Hodl? Refund? Scalp?

Either way Tesla will retain a majority of the revenue available but what is the point of an early reservation if you can’t afford it at that early price point?

I’m suggesting I have a solution for Tesla to offer close to reveal prices but much of the forum is getting caught on the vagaries of the above conversation. (And regularly mischaracterising my posts as being the opposite)

Go here if you think Tesla is not going to honour reveal pricing and would you like them to.

Tesla has never shifted the price of 3/Y on people who have already reserved. They have canceled a model, the rear-wheel-drive Y, but they have not raised prices on others.

-Crissa

 

[Deleted member 3316]

Tesla has never shifted the price of 3/Y on people who have already reserved. They have canceled a model, the rear-wheel-drive Y, but they have not raised prices on others.

-Crissa

This is getting slightly into semantics here Crissa.

Yes, once a person placed an order the price is set or lowered, but nobody has ordered a Cybertruck yet.

Are we talking about the price out of the gate or what Tesla will do as production ramps?

The pricing is likely to be a variation on a Dutch auction. Which means early reservation holders will pay a premium, because some late res or no res customers will be happy to pay a premium for the first few hundred thousand vehicles. I think Tesla should benefit from that demand without unduly charging early reservation holders.

 

[Mini2nut]

I predict three CT trim levels. I think the Quad Motor version was shelved due to diminishing returns using a 4th electric motor;

-Dual Motor
-Tri Motor
-Tri Motor Plaid (1,000 plus HP)

 

[Crissa]

This is getting slightly into semantics here Crissa.

Yes, once a person placed an order the price is set or lowered, but nobody has ordered a Cybertruck yet.

Are we talking about the price out of the gate or what Tesla will do as production ramps?

The pricing is likely to be a variation on a Dutch auction. Which means early reservation holders will pay a premium, because some late res or no res customers will be happy to pay a premium for the first few hundred thousand vehicles. I think Tesla should benefit from that demand without unduly charging early reservation holders.

Literally, they have never raised the prices on anyone who has set a reservation for a 3/Y. Not a pre-order. They didn't do this stupidity that Ford is doing to their Lightning reservation list.

I don't know why you continually suggest Tesla will do something they have not done, and in fact, would be massive bad press from doing.

-Crissa

 

[Deleted member 3316]

Literally, they have never raised the prices on anyone who has set a reservation for a 3/Y. Not a pre-order. They didn't do this stupidity that Ford is doing to their Lightning reservation list.

I don't know why you continually suggest Tesla will do something they have not done, and in fact, would be massive bad press from doing.

-Crissa

Elon has stated the price and specs will not be the same as reveal. We’ve already discussed this.

Tesla regularly do things the world has never seen, reasoning by analogy will only achieve similar results to the past. First principles will help you glimpse the future.

 

[Ogre]

Literally, they have never raised the prices on anyone who has set a reservation for a 3/Y. Not a pre-order. They didn't do this stupidity that Ford is doing to their Lightning reservation list.

I don't know why you continually suggest Tesla will do something they have not done, and in fact, would be massive bad press from doing.

-Crissa

Worth pointing out.

Tesla updated pricing on the original Roadster in order to break even on production. Even there, they didn’t raise the base price of the car, but increased the price of options and introduced a new more expensive model which they could make a profit on. The key here being—if they’d released the Roadster as it was, Tesla would have lost money on each one they made.

Since it’s unlikely the Cybertruck will cost Tesla $50k to produce, this isn’t likely an issue.

The only other time they altered prices was when they launched the refreshed Model X. Tesla increased the price by $10,000 and some customers who had reservations wound up with a bit of sticker shock. The refreshed X had a lot more features than what the people had originally ordered and Tesla gave them a discount so the total increase was roughly 10% versus their original order price.

I think most people would be content with a 10% increase if they got 4WS in the bargain. Particularly since the IRA tax credit would be more than the increase.

The crazy increases people keep talking about are completely unprecedented. Also, Ford‘s sales on the Lightning are slowing a lot. You can find them on lots for sale now even though they are still working through their reservation list. People who ordered them can’t/ won’t pay what Ford is offering.

 

[Deleted member 3316]

I predict three CT trim levels. I think the Quad Motor version was shelved due to diminishing returns using a 4th electric motor;

-Dual Motor
-Tri Motor
-Tri Motor Plaid (1,000 plus HP)

Price prediction?

 

[Deleted member 3316]

completely unprecedented

Yep.

 

[John K]

To put the pricing question to bed, I have heard from TOP people the original price is being honored from early reservists.

You have confirmation.

 

[Deleted member 3316]

To put the pricing question to bed, I have heard from TOP people the original price is being honored from early reservists.

You have confirmation.

Ogre will want to know numbers, how many early reservation holders, what number constitutes early. What was the date and time you had this discussion?

 

[John K]

Ogre will want to know numbers, how many early reservation holders, what number constitutes early. What was the date and time you had this discussion?

Wait for it… 42

 

[Deleted member 3316]

Wait for it… 42

That’s everything.

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