Honoring Original Estimated Pricing

[Deleted member 3316]

Yup. Not to mention that Tesla has said that the CT will be cheaper to produce than a Model 3.

If you believe Tesla will be able to reduce costs (and they will), it makes logical sense that they will price CT very competitively (they will).

Tesla's goal, afterall, is to make the CT so compelling that buyers will opt for an EV truck rather than an ICE truck.

I fully expect Tesla to be significantly less expensive than its competitors.

The fact that it will be cheaper to make than model 3 doesn’t mean they will sell it accordingly. Demand is off the charts so profit potential is equally high. Tesla isn’t going to let that profit just slide over to parasitic profiteers. They are going to bump up the price to meet demand at that price and Dutch auction it down as demand at those prices decreases….. unless of course they take a different sales strategy…

https://www.cybertruckownersclub.com/forum/threads/cybercatch22-demand-vs-delay.8179/#post-141764

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[Deleted member 3316]

Tesla would rather sell the first two years of production at slim margins than price themselves out of the high-volume truck market.

There’s no way Tesla will sell the first two years of production at a slim margin. It will likely take at least three years to get up to producing anywhere near the reservation list.

2023 1000-20,000
2024 250k - 350k
2025 450k - 750k
2026 600k - 1.5million

Any vehicles sold to reservation holders at low margin are highly likely to be resold at significant profit. Tesla is not going to give up that profit potential.

 

[Mini2nut]

Tesla has 3-4 years of development costs bringing the Cybertruck to market. I can only imagine the amount of designing, computer crash simulation, validation, engineering and fabrication hours involved.

When they finally reveal pricing it will be a shot heard around the world.

 

[HaulingAss]

There’s no way Tesla will sell the first two years of production at a slim margin. It will likely take at least three years to get up to producing anywhere near the reservation list.

You deleted the portion where I added I didn't think it would be neccessary to sell the first two years at slim margins due to manufacturing efficiency. But Tesla absolutely would sell at slim margins if it was necessary to not price themselves out of the mainstream truck market.

One of Tesla's goals as they price the Cybertruck will be to price it such that early buyers do not have to pay massively more than those who come later. That said, the price of Cybertruck should come down over the years, but this should be a gradual process, not one linked to month-to-month demand. Tesla is more pragmatic and is not driven by greed. Sure, they like to make a good profit when they can, but history has shown they rarely push the envoelope on maximizing profit for the sake of more profit.

I base this on the release of previous models that garnered waiting lists many months long. Sure, Tesla could have raised prices and still sold everyone they made but they only raise prices reluctantly, when there is no end to demand in sight. If Tesla prices the truck substantially above what mainstream truck buyers will support, Tesla would run out of high-price buyers in a year or two and be forced to significantly lower prices. They want to avoid large price swings so they will try to price early deliveries at a price they think is sustainable over the long-haul. Of course, changes to the macro economy could force Tesla to make big pricing changes anyway, but they want to avoid that as much as possible by hitting the sweet spot of pricing to begin with.

 

[Ogre]

Tesla has 3-4 years of development costs bringing the Cybertruck to market. I can only imagine the amount of designing, computer crash simulation, validation, engineering and fabrication hours involved.

When they finally reveal pricing it will be a shot heard around the world.

This is no different from the Model 3 or Model Y or any of their other cars.

The shot has already been heard. Maybe some people are a little hard of hearing?

 

[FrankMcEnnis]

There’s no way Tesla will sell the first two years of production at a slim margin. It will likely take at least three years to get up to producing anywhere near the reservation list.

2023 1000-20,000
2024 250k - 350k
2025 450k - 750k
2026 600k - 1.5million

Any vehicles sold to reservation holders at low margin are highly likely to be resold at significant profit. Tesla is not going to give up that profit potential.

So you find it normal that the one that reserved it first pay more?

I think that if they are able to sell them at the reveal price, they should honour the first people who put their trust in the CT and raise price when they arrive at the reservation when there was no price on the website!

 

[Deleted member 3316]

So you find it normal that the one that reserved it first pay more?

I think that if they are able to sell them at the reveal price, they should honour the first people who put their trust in the CT and raise price when they arrive at the reservation when there was no price on the website!

This is exactly the point I’m making.

If sold at reveal price without a restrictive sales contract Tesla would be negligent of is obligations to share holders.

Without a restrictive sales clause Tesla will be obligated to keep the price asymptote above the demand curve. Which means early reservation holders will not be able to purchase at reveal price.

Who is Tesla better off upsetting end users of their products or early reservation holders looking to make a quick (if 4years delayed) profit?

 

[HaulingAss]

This is exactly the point I’m making.

If sold at reveal price without a restrictive sales contract Tesla would be negligent of is obligations to share holders.

Without a restrictive sales clause Tesla will be obligated to keep the price asymptote above the demand curve. Which means early reservation holders will not be able to purchase at reveal price.

Who is Tesla better off upsetting end users of their products or early reservation holders looking to make a quick (if 4years delayed) profit?

I disagree it would be negligent to TSLA shareholders to give reservationists a price as close as possible to reveal pricing rather than selling it for as much as people are willing to pay. Tesla is not a company lacking in morals. Not everyone will agree with the way Tesla management sees the world but, from my perspective, they get it mostly right most of the time. And I don't claim to have better judgement than they do.

I have a lot of TSLA shares and I hope they price the Cybertruck so low that it either hits the reveal pricing (adjusted for additional features like all-wheel steering that were not anticipated at the reveal) or Tesla sells it for slim margins to keep the pricing as close as possible to reveal pricing. There will be plenty of time to bring down production costs further as volumes steadily increase over time. I want the Cybertruck to be priced so low it becomes the bestselling pickup in America.

 

[Deleted member 3316]

But Tesla absolutely would sell at slim margins if it was necessary to not price themselves out of the mainstream truck market.

Agreed

Tesla is more pragmatic and is not driven by greed. Sure, they like to make a good profit when they can, but history has shown they rarely push the envoelope on maximizing profit for the sake of more profit.

Clearly not greedy and generally pragmatic only push the envelope when adhering to their obligation to shareholders.

I base this on the release of previous models that garnered waiting lists many months long. Sure, Tesla could have raised prices and still sold everyone they made but they only raise prices reluctantly, when there is no end to demand in sight.

The Cybertruck is different to all their other vehicles, as Elon has previously said, the demand for Cybertruck relatively indistinguishable from infinite.

This is the reason they are trying to prepare people for not matching the reveal price, blaming inflation, chip shortages, materials demand. I’m confident this vehicle will be produced for equal or less than Model3/Y but they cannot sell it for that comparable price and still fulfil their obligation to shareholders.

They want to avoid large price swings so they will try to price early deliveries at a price they think is sustainable over the long-haul.

One way Tesla can avoid the negatives associations around price volatility is to ensure that volatility is completely transparent and ensure that every transaction of new a Tesla vehicle is between Tesla and the end user.

 

[Deleted member 3316]

I disagree it would be negligent to TSLA shareholders to give reservationists a price as close as possible to reveal pricing rather than selling it for as much as people are willing to pay. Tesla is not a company lacking in morals. Not everyone will agree with the way Tesla management sees the world but, from my perspective, they get it mostly right most of the time. And I don't claim to have better judgement than they do.

I have a lot of TSLA shares and I hope they price the Cybertruck so low that it either hits the reveal pricing (adjusted for additional features like all-wheel steering that were not anticipated at the reveal) or Tesla sells it for slim margins to keep the pricing as close as possible to reveal pricing. There will be plenty of time to bring down production costs further as volumes steadily increase over time. I want the Cybertruck to be priced so low it becomes the bestselling pickup in America.

Do you understand the connection between low MSRP and scalpers?

As a shareholder do you think Tesla should be giving up profit to parasites that are manipulating the market by taking delivery slots and taking potential profits from TSLA?

 

[Ogre]

This is the reason they are trying to prepare people for not matching the reveal price…

Preparing people for ???

Musk has made what… one super vague comment? This is not the action of a company paving the way for customers to casually accept a huge price increase.

 

[Deleted member 3316]

Preparing people for ???

Musk has made what… one super vague comment? This is not the action of a company paving the way for customers to casually accept a huge price increase.

Tesla utilises the rumour mill allowing imaginations to run wild with vague and innocuous statements. Then when some controversial decision is made like dramatic price increases from reveal or a small increase but a restrictive sales clause they can hark back to previous (albeit vague) comments.

 

[HaulingAss]

Do you understand the connection between low MSRP and scalpers?

As a shareholder do you think Tesla should be giving up profit to parasites that are manipulating the market by taking delivery slots and taking potential profits from TSLA?

This is misguided thinking because Cybertruck reservation holders don't care what scalpers are selling Cybertrucks for, they care how much Tesla charges them. Tesla should not adjust pricing to totally eliminate scalping because they already have mechanisms available to prevent high-volume scalping. Specifically, Tesla identifies high volume scalpers before selling multiple Cybertrucks to the same person or entity.

The other mistaken notion is that fiduciary duty to shareholders requires Tesla to sell their vehicles for the maximum possible price. That is clearly false because management is granted wide latitude to make business decisions in the best interest of long-term shareholders. They have no obligation to attempt to extract maximal profit from each sale. In fact, management would be negligent to do so if they believed it would harm Tesla's reputation in a manner that does not serve the company well in the long run.

Tesla's management could even sell vehicles at a loss if they believed that was in the companies best long-term interest. And, indeed, they have already done so in the past with Model 3 and Model Y as they ramped production volumes high enough to make a profit.

People who argue for Tesla to raise the prices to the maximum point at which the trucks will still sell are afraid that the Cybertruck will be too good of a value for legacy trucks to compete with. People like this WANT the Cybertruck to be priced north of 5 digits but they are deluding themselves. That's not how Tesla rolls.

Watch and see.

 

[Ogre]

Tesla utilises the rumour mill allowing imaginations to run wild with vague and innocuous statements. Then when some controversial decision is made like dramatic price increases from reveal or a small increase but a restrictive sales clause they can hark back to previous (albeit vague) comments.

LOL.

Literally, your proof is that people like you have been posting their fears for the past 12+ months.

Perfecto.

 

[Deleted member 3316]

This is misguided thinking because Cybertruck reservation holders don't care what scalpers are selling Cybertrucks for, they care how much Tesla charges them.

In no way is this misguided. Not all reservation holders are scalpers, but all scalpers are reservation holders. The only way a person could scalp a Cybertruck in the next 5 years is if they have a reservation. Scalpers effect Teslas pricing.

Specifically, Tesla identifies high volume scalpers before selling multiple Cybertrucks to the same person or entity

What is the difference to Tesla if one person is scalping 100 vehicles or 50 people scalping two? Zero functional difference besides the difficulty in identifying them before the transaction is complete

The other mistaken notion is that fiduciary duty to shareholders requires Tesla to sell their vehicles for the maximum possible price.

That’s not what I’ve said. Tesla have a fiduciary responsibility to balance their production targets with available profit margins, in order to reach a high enough production volume it’s clearly quite acceptable for them to sell at a loss in order reach a desired and profitable volume. They have a fiduciary responsibility to not let revenue due to them go to an external entity. Which is why Elon has frequently said the high prices for Teslas are embarrassing.

People who argue for Tesla to raise the prices to the maximum point at which the trucks will still sell are afraid that the Cybertruck will be too good of a value for legacy trucks to compete with. People like this WANT the Cybertruck to be priced north of 5 digits but they are deluding themselves. That's not how Tesla rolls.

Are you thinking I’m arguing for Tesla to make a blanket price rise to Cybertruck?

I’m not.

I’m suggesting Tesla provide a mechanism to let people, who DON’T have a reservation;

To pay as much as they see fit,​

For a small percentage of the production volume,​

Directly to Tesla.​

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