How big of a price increase would you tolerate?

[Ogre]

Please change all your votes to Zero. Honesty is not always the best policy. Look at this pole like you would at the question: “honey do I look fat?”

My feeling here is to some extent Tesla could reasonably split the difference. They can’t sell the trucks at a loss, so they take a small hit to margins and bump the priced a small amount.

As I pointed out above though… people don’t have infinite budgets. Regardless of motivations, a lot of people will drop out if there are price bumps.

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[Blue Steel]

At 10% I would start strongly considering other options. Like Rivian for example. The look-at-me styling is already hard for my reserved personality to accept. But the value proposition and the rugged functionality keep me on board. Taking away the value would be a huge blow.

However, I do think at up to 10% it's still a solid value.

 

[Diehard]

My feeling here is to some extent Tesla could reasonably split the difference. They can’t sell the trucks at a loss, so they take a small hit to margins and bump the priced a small amount.

As I pointed out above though… people don’t have infinite budgets. Regardless of motivations, a lot of people will drop out if there are price bumps.

I think it is too early to worry about it. No one has committed to much delivery yet. Ford has not committed to any numbers for 22 and reservations are not open. Rivian production is around 62 units a month right now. We just have to wait and see what Market looks like at the time CT comes off the line. Ridgeline and frontier is going for $50K right now. If it is like that next year, Tesla may have a hard time sticking to original price. Just CT supply and demand alone makes a good case for price increase for the first 3-4 years. But no matter how much we speculate we simply don’t know. I think for any of us, we just have to see what the facts and options are when patience runs out.

 

[Ogre]

I think it is too early to worry about it.

Yes. Absolutely.

I just get annoyed by the assumptions of a vocal minority and require validation.

Ridgeline at $50k… wow.

 

[John K]

Tesla should discount the price for all reservation numbers below 500,000 due to anxious waiting.

Take that Tesla employees trying to convince us on a price hike. I mean, I’ll pay it but I want a free pen. Fear my negotiation skills.

 

[John K]

if a price correction is needed and I were Tesla, I would be creating a grass roots approach convincing customers Tesla would be crazy not to increase the price. Creating a consumer defense instead of a backlash.

 

[SpaceYooper]

It's comical to me that people would post their willingness to pay more for a product that 1) had a posted price, 2) isn't yet available for purchase 3) seems to be in high demand.

Almost as if they are trying to increase the price of the product.

My answer is 0. Not because it's what they advertised, but because what they advertised made it cost-competitive. If they raise the price they'll be niche at best and at worst they risk market failure. Note I did not say product failure. If their intent is to compete with a 1M sold per year market share, they are not going to do that with a product priced higher than what it debuted for.

 

[Ogre]

If their intent is to compete with a 1M sold per year market share, they are not going to do that with a product priced higher than what it debuted for.

This is what I keep coming back to.

People are talking about the Cybertruck as being at price parity with the Hummer. The Hummer was clearly built as a niche high end product. The Cybertruck is a mass market product. They need to sell hundreds of thousands of these per year to justify the cost of the manufacturing facilities.

 

[Diehard]

This is what I keep coming back to.

People are talking about the Cybertruck as being at price parity with the Hummer. The Hummer was clearly built as a niche high end product. The Cybertruck is a mass market product. They need to sell hundreds of thousands of these per year to justify the cost of the manufacturing facilities.

Yes but if you can sell the first million with $20K markup and higher margin before having to drop prices, why not? Tesla is about expansion and that requires capital. They also have a lot of share holders that look at their balance sheet. They are too deep into this to be nice. I think they will do whatever they can getaway with. The question is what market looks like in a year or so and what they can getaway with. I predict a lot.

you just gave them a road map. Start with 15% mark up until you have exhausted 17% of reservation holders and then drop 5%, hold until another 29% sold and drop another 5%,……..

 

[Ogre]

Yes but if you can sell the first million with $20K markup and higher margin before having to drop prices, why not? Tesla is about expansion and that requires capital. They also have a lot of share holders that look at their balance sheet. They are too deep into this to be nice. I think they will do whatever they can getaway with. The question is what market looks like in a year or so and what they can getaway with. I predict a lot.

you just gave them a road map. Start with 15% mark up until you have exhausted 17% of reservation holders and then drop 5%, hold until another 29% sold and drop another 5%,……..

I don’t think Tesla reads this page and I suspect they are much better at this than we are.

Just imagine the heads exploding if people started getting emails talking about upgrading to the Founder’s version for $90k with solar and gold spoked wheels and a then bumping those upgrades up to the front of the queue. “Steering wheel edition”… $95k LOL.

As I mentioned before, Tesla hasn’t messed with that sort of market engineering, struggle to see them starting with Musk’s favorite vehicle.

 

[Diehard]

I don’t think Tesla reads this page and I suspect they are much better at this than we are.

Just imagine the heads exploding if people started getting emails talking about upgrading to the Founder’s version for $90k with solar and gold spoked wheels and a then bumping those upgrades up to the front of the queue. “Steering wheel edition”… $95k LOL.

As I mentioned before, Tesla hasn’t messed with that sort of market engineering, struggle to see them starting with Musk’s favorite vehicle.

They should send those emails around Halloween. Exploding heads should never go to waste.

You make me think may be CT is not delayed. First year production may have already started shipping to Qatar and UAE first with super special specs for super rich and then going public with the specs you noted for their average citizens.

Last time I was in London I saw two identical gold color (they may have been actual gold) Aventadors one following the other ripping the streets like they own them (They probably did). I asked a local what is the deal? He said they fly them in for the weekend and bring a driver and an "extra" in case they get a flat. I crap you not, it seems like they have scooped up so many properties and businesses in London with oil money the locals feel like tourists. If they scoop up all the EVs they can keep selling oil

I do certainly hope you and Crissa are right and they stick with the price for all reservation holders. The truck is just too cool for none millionaires to be deprived of. Especially after waiting this long.

 

[MiguelAznar]

“Steering wheel edition”

That’s brilliant, but does Tesla have the technology for this?
?

 

[MiguelAznar]

Last time I was in London I saw two identical gold color (they may have been actual gold) Aventadors one following the other ripping the streets like they own them (They probably did).

Gold cars are for people that can’t get stainless steel trucks.

 

[Crissa]

Tesla is not immune from hyperinflation, and...

Hyperinflation?

The 80's were not hyperinflation.

-Crissa

 

[KrodEKid]

Speaking generally, average inflation historically has been 2-3% a year. It has been lower, almost flat in the past 13 years. We are due for inflationary period. That means costs of everything goes up. But I put my money in the hat already. I would feel cheated if they took those prices away from me.

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