More Tesla price cuts === cheaper Cybertruck (6 oct)

[Coolbreeze704]

“They knew prices of the truck market when they announced it. They had it priced same as Y. Why would that change?”


It was four years ago

Elon musk himself said, pricing would be different, which means higher

and it comes down to how it’s configured a model Y starts at $53,000 with no options are we including $6000 navigation or $15,000 full self driving?

Similar on Ford F150 lightning: base starts at 60 high end model starts at 98,000+

The cybertruck, many of us will want to own won’t be a base w no options. Let alone be available

His quote on price was made when the Ukraine war and the pandemic was sending material costs through the roof. That has adjusted. I believe costs to build the CT are back inline and efficiencies have been improved. At reveal I am sure they did not know the demand they would see with 1 million orders which also helps with economies of scale.

49 to 54k for dual I am sticking with and 7k FSD for early orders. Full 7500 tax incentive so Mr B helped pay for my FSD. Thanks

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[Deleted member 3316]

His quote on price was made when the Ukraine war and the pandemic was sending material costs through the roof. That has adjusted. I believe costs to build the CT are back inline and efficiencies have been improved. At reveal I am sure they did not know the demand they would see with 1 million orders which also helps with economies of scale.

49 to 54k for dual I am sticking with and 7k FSD for early orders. Full 7500 tax incentive so Mr B helped pay for my FSD. Thanks

What Tesla can afford to sell Cybertruck for, and what it will sell for are vastly different.

 

[Coolbreeze704]

What Tesla can afford to sell Cybertruck for, and what it will sell for are vastly different.

You are right and they want to sell millions of CT's. My statement is more to speak to EM tweeting about CT price increase. At the time of statement MY and all other saw regular price increases. Now we are seeing regular price decreases.

Who knows. We are all guessing. I just do not see a reason now that they cannot stay within 10% of reveal pricing. Mission hasn't changed either, which means sell compelling truck to remove as many ICE trucks from road as possible. Price is part of that equation.

 

[Deleted member 3316]

You are right and they want to sell millions of CT's. My statement is more to speak to EM tweeting about CT price increase. At the time of statement MY and all other saw regular price increases. Now we are seeing regular price decreases.

Who knows. We are all guessing. I just do not see a reason now that they cannot stay within 10% of reveal pricing. Mission hasn't changed either, which means sell compelling truck to remove as many ICE trucks from road as possible. Price is part of that equation.

The reservation list and additional demand is the reason Tesla cannot stay within 10% of reveal price.

 

[Coolbreeze704]

The reservation list and additional demand is the reason Tesla cannot stay within 10% of reveal price.

Guess we will see in a few months.

 

[flowerlandfilms]

The question is how can you know anything about an extinct eco-system unprecedented Cyber Vehicle, and therefore how can you ever assume that you can control it price it?
I mean you have plants electric vehicles in this building market that are poisonous expensive, you pick them because they look good are available, but these are aggressive living things unprecedented vehicles that have no idea what century price bracket they're in and they'll defend market themselves, violently if necessary.

 

[Gurule92]

IMO, people forget that demand is constrained by Affordability. Look at the S and X. Those are great vehicles too. And people want them. They just can't afford them, so the 3 and Y sell way more even though their inferior cars. For every 5k you raise the price on something you half the number of people who can afford it.

People act like the demand and reservations that the cybertruck has, has nothing to do with its announced price. People aren't lining up because it's pretty. People are lining up because it's a compelling product at a compelling price point. If either of those change too much, the demand falls off a cliff. A 70k dual motor will mean that the people who were already stretching for the original price dual motor are out of buying it and they likely wouldn't settle for a rwd.

Let's consider this. If the 5k thing is real, introduction of the 7500 tax credit increases the number of people who can afford the car. And if they do raise the prices up to 7500, they'll likely maintain the exact same number of people who can afford it as was true on launch. They could go up to ~60k for the dual motor probably, when considering the tax credit.

They aren't looking to make an aspirational truck their looking to make an attainable truck.

Plus, tri motor will fall under tax credit, they'd be silly to not get it under there.

 

[John K]

Price cut means the stated Cybertruck cost will also be reduced 10%.

Prove the statement wrong.

 

[jerhenderson]

Words, but not actions by Tesla.

Always been a premium product.

No reason to believe it’s now gonna be any less that a Lightening, unless they make a base fleet version.

Not looking likely soon with items like 4 wheel steering, air suspension, 35” tires, vault,
All premium. and expensive.

Now if they make all those items as an option then it starts to look better financially.
The $35K M3 was very short lived though.

Competition Is what sets price, not the company/product.
so Ford Lightening configurator is is best benchmark until we know more officially.

would be great to see the 2019 launch pricing, but I’d advise to budget at lightning levels unless tesla breaks with the past and delivers a base/fleet/stripper version, let alone at launch

they've been premium first by master plan design ( X, S ) ...... then by all the factors created by covid. the M3 basic was not intended to be hard to attain.

 

[TBONO]

they've been premium first by master plan design ( X, S ) ...... then by all the factors created by covid. the M3 basic was not intended to be hard to attain.

Yet the M3 “basic” was scrapped

Starting to look like the $40k single motor CT: maybe they eventually make a few, (likely at a higher price) but continue with higher end trims

 

[CyberBC]

I think Tesla will start the price low to guage demand. They don't have a marketing department or dealerships to pre guage this. They will use their order backlog as the guage. If demand is through the roof, they will gradually raise the prices. To me it makes way more sense than guessing at high demand and having to lower prices. I don't think the number of $100 pre-orders from 3 years ago means that much.

 

[slomo]

Tesla has always priced as low as necessary to reach production goals.

The reveal prices were aspirational and a bit nuts in hindsight.

For profit companies don't price based on cost. Tesla's margins are squeezed on the 3/Y and CT is a way to recover some of that lost profitability.

 

[Coolbreeze704]

Tesla has always priced as low as necessary to reach production goals.

The reveal prices were aspirational and a bit nuts in hindsight.

For profit companies don't price based on cost. Tesla's margins are squeezed on the 3/Y and CT is a way to recover some of that lost profitability.

How do we know the margins are squeezed on 3/Y? Because they lowered price? Until we see 1st qtr results we will know know if that is the case.

 

[cvalue13]

How do we know the margins are squeezed on 3/Y? Because they lowered price? Until we see 1st qtr results we will know know if that is the case.

not here disagreeing with anything you’re saying, as I agree with it

only to add that around here folks seem to sometimes conflate materially different senses of “margins” on Tesla’s vehicles - and I can’t always discern if people are disagreeing or simply talking past one-another

 

[Crimson_Fate]

Tesla can sell the CT for whatever they want and they will always find people willing to pay that price but Tesla does need to be mindful with the initial prices.

On the one hand once they announce prices those prices will become locked (for those who keep them) . There is currently such a backlog of CT orders that it will take Tesla years to fill them so the price is going to need to be good enough to contend with everything else that is currently out there and that which will arrive in the next few years

On the other hand they don't want to increase the prices so high that a good portion of those reservations are cancelled

I still belive we won't see more then a 10% increase ( not including the quad) .

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