Unless a new class of buyer joins, there will not be many takers at $85k+ for a pickup

anionic1

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How much of the population do you think has 85k to spend on a truck?

If 85k is the going rate to get an EV truck, then i don't see them selling millions of trucks. Do you know another vehicle on the road that sells for 85k and are numbered in the millions.
Rivian raising prices is a great case study. People were livid that were already willing to spend $80k. And since the price hike in March they have only secured 10,000 more orders. So clearly it’s not huge demand but there are enough willing to pay $93k.

Tesla has a much higher following I would think they will monopolize on people willing to pay a higher pace while they ramp up production and they will keep the price high as long as they can which may be a couple years.
For most it shouldn’t make financial sense at $80k, but that probably won’t stop a ton of people.
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Jhodgesatmb

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Rivian raising prices is a great case study. People were livid that were already willing to spend $80k. And since the price hike in March they have only secured 10,000 more orders. So clearly it’s not huge demand but there are enough willing to pay $93k.

Tesla has a much higher following I would think they will monopolize on people willing to pay a higher pace while they ramp up production and they will keep the price high as long as they can which may be a couple years.
For most it shouldn’t make financial sense at $80k, but that probably won’t stop a ton of people.
It would be ridiculous for Tesla to price their trucks to not be extremely competitive with ICE counterparts (or even BEV counterparts) if they want to accelerate the move to sustainable energy. I am surprised that you think that Tesla will keep prices high as long as possible. I think that they will lower prices as soon as practical. Yours is a view based on greed, while mine follows the Tesla vision. I think that it is amazing that Tesla has such high profitability on its vehicles by having extremely efficient manufacturing, direct sales, and no advertising.

I've mentioned this before but I priced a new Lexus RX hybrid (it would have been my 3rd) with the same features as a Model Y and the prices were very close. Last year I did a similar ad hoc pricing on an ICE truck from Ford, Chevrolet, and Toyota and found that, with the same features as the CT, prices were similar or higher.
 

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It would be ridiculous for Tesla to price their trucks to not be extremely competitive with ICE counterparts (or even BEV counterparts) if they want to accelerate the move to sustainable energy. I am surprised that you think that Tesla will keep prices high as long as possible. I think that they will lower prices as soon as practical. Yours is a view based on greed, while mine follows the Tesla vision. I think that it is amazing that Tesla has such high profitability on its vehicles by having extremely efficient manufacturing, direct sales, and no advertising.

I've mentioned this before but I priced a new Lexus RX hybrid (it would have been my 3rd) with the same features as a Model Y and the prices were very close. Last year I did a similar ad hoc pricing on an ICE truck from Ford, Chevrolet, and Toyota and found that, with the same features as the CT, prices were similar or higher.
A few people want Cybertruck price to be high so they have a sense of exclusivity. They want a giant toy which shouts to the world “I can afford expensive toys”.

There is no logic to be found here.
 

Jhodgesatmb

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A few people want Cybertruck price to be high so they have a sense of exclusivity. They want a giant toy which shouts to the world “I can afford expensive toys”.

There is no logic to be found here.
That is true of everything. I don't think we need to worry about them.

ON SOAPBOX
What [always] pisses me off are the people that get to the front of the line because they are "friends" and "influencers". To me a part of what brings society down is this whole "hierarchy" culture. If it weren't for the fact that companies pretend to be fair (such as having a reservation system, or a lottery) and then egregiously do what they want, then I would have less/nothing to complain about. It is the suggestion of fairness that pushes my buttons. I know this is off point but I felt compelled to speak out.
OFF SOAPBOX
 

Ogre

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That is true of everything. I don't think we need to worry about them.

ON SOAPBOX
What [always] pisses me off are the people that get to the front of the line because they are "friends" and "influencers". To me a part of what brings society down is this whole "hierarchy" culture. If it weren't for the fact that companies pretend to be fair (such as having a reservation system, or a lottery) and then egregiously do what they want, then I would have less/nothing to complain about. It is the suggestion of fairness that pushes my buttons. I know this is off point but I felt compelled to speak out.
OFF SOAPBOX
I don’t think we have to worry too much about this. The vast majority of influencers in the Tesla space that Musk cares enough about to notice were at the launch or watched it live and ordered first thing. I’m sure a few will be gifted/ sold to celebs, but not a ton.

More likely is people who buy early reservation trucks second hand for a premium. But if people want to lose a bunch of money paying $250k for a truck which will be worth $60k in a year, more power to them!
 


Jhodgesatmb

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I don’t think we have to worry too much about this. The vast majority of influencers in the Tesla space that Musk cares enough about to notice were at the launch or watched it live and ordered first thing. I’m sure a few will be gifted/ sold to celebs, but not a ton.

More likely is people who buy early reservation trucks second hand for a premium. But if people want to lose a bunch of money paying $250k for a truck which will be worth $60k in a year, more power to them!
Agreed. It's just a button pusher for me.
 

anionic1

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A few people want Cybertruck price to be high so they have a sense of exclusivity. They want a giant toy which shouts to the world “I can afford expensive toys”.

There is no logic to be found here.
With both your logic, Tesla would need to decide to voluntarily reduce their profit margin and price the CT well below their competitors with similar specs. They aren't going to do that. Very few companies, regardless of their mission statement, will lower profit if they can get it. Most, including Tesla, will say that they need to keep their profit high to continue to grow and fund their mission statements future. Also, Elon has made it very clear that it will be a significant challenge to make the CT affordable. I buy hundreds of millions a year in construction. Cost are softening or at least the crazy escalation has slowed way down. So the CT fabrication will probably come at a good time if overly zealous world leaders can manage to not start another world war.
 

Ogre

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With both your logic, Tesla would need to decide to voluntarily reduce their profit margin and price the CT well below their competitors with similar specs. They aren't going to do that. Very few companies, regardless of their mission statement, will lower profit if they can get it. Most, including Tesla, will say that they need to keep their profit high to continue to grow and fund their mission statements future. Also, Elon has made it very clear that it will be a significant challenge to make the CT affordable. I buy hundreds of millions a year in construction. Cost are softening or at least the crazy escalation has slowed way down. So the CT fabrication will probably come at a good time if overly zealous world leaders can manage to not start another world war.
First, I presume Tesla has a pretty good handle on their profit margins. If you assume they are competent and priced appropriately at launch, their margins will be fine with rational inflation adjustments. Considering how profitable they are… I think it’s reasonable to assume they are competent.

As for pricing with the competition. Electric trucks with reasonable range are priced from around $60k to around $100k. There are a couple outliers, but that’s the lions share of them. With a base Cybertruck at $60k, it is right in line with the electric F150 with a similar range. If there is a Plaid truck at $100k as I suggest, that is right in line with the top end F150 and the higher end R1T.

You seem to assume Tesla had no discipline and priced the Cybertruck irresponsibly at launch which isn’t consistent with their success. Your other assumption is they are going to be vastly more expensive than any other truck out there. Also not consistent with any of their product pricing.
 

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This is a bit of a goalpost shift.

OP said there would not be many takers at $85k. First you called him a troll. Now you seem to be agreeing with that sentiment.

Neither the OP nor myself suggested Tesla would never sell a Cybertruck for $85k. Just that it’s a limited market.


I don’t know what Tesla’s launch strategy is going to be, but I can say for certain that an affordable Cybertruck is going to have a much higher shock and awe value than a high end truck.

Tesla chose to launch their Texas Model Y with a lower end vehicle. Sometimes the launch strategy is more about what pieces they have ready to put to use then what vehicle they want to put on the road.
Volkswagen had a lot tougher time trying to upsell their Phaeton because people just thought "Cheap" when they saw the VW name.

Because Tesla started off making expensive and really fast cars, when people think Tesla, they think Fast, luxury, Cutting Edge, Top of the Line.

They'll continue that line with the Cybertruck.

When the CT comes out, it'll come out swinging. People will be shocked/surprised by it's capabilities "Why would I buy a Lightning when the CT has much more range and could beat it to a pulp hauling, towing, racing, offroading... And, hey, I see here I can order a much less expensive Cybertruck that'll still beat that Lightning but I may have to wait a bit to get it. Still, though. It's badass!"
 

anionic1

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First, I presume Tesla has a pretty good handle on their profit margins. If you assume they are competent and priced appropriately at launch, their margins will be fine with rational inflation adjustments. Considering how profitable they are… I think it’s reasonable to assume they are competent.

As for pricing with the competition. Electric trucks with reasonable range are priced from around $60k to around $100k. There are a couple outliers, but that’s the lions share of them. With a base Cybertruck at $60k, it is right in line with the electric F150 with a similar range. If there is a Plaid truck at $100k as I suggest, that is right in line with the top end F150 and the higher end R1T.

You seem to assume Tesla had no discipline and priced the Cybertruck irresponsibly at launch which isn’t consistent with their success. Your other assumption is they are going to be vastly more expensive than any other truck out there. Also not consistent with any of their product pricing.
Really the only two real options are RIvian and Lighting. The dual motor 320 mi range lighting is $83,269 today and the RIvian is close to $68k. I am not saying that Tesla priced things irresponsibly. I started a project that was $105M in 2020 and now the same project is $130M with very little change other than inflation/escalation. No one could have predicted that. For tesla to keep the same profit margin on the CT as the rest of their cars, there is no more $49k dual motor. You act like people are just asking for the price to go up and that some may even like that. That is wrong. The vast majority is just trying to be realistic about pricing.
 


OP
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Really the only two real options are RIvian and Lighting. The dual motor 320 mi range lighting is $83,269 today and the RIvian is close to $68k. I am not saying that Tesla priced things irresponsibly. I started a project that was $105M in 2020 and now the same project is $130M with very little change other than inflation/escalation. No one could have predicted that. For tesla to keep the same profit margin on the CT as the rest of their cars, there is no more $49k dual motor. You act like people are just asking for the price to go up and that some may even like that. That is wrong. The vast majority is just trying to be realistic about pricing.
F150 xlt 320mi is $80974.

$73474 after 7500 rebate if you qualify
 

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Really the only two real options are RIvian and Lighting. The dual motor 320 mi range lighting is $83,269 today and the RIvian is close to $68k. I am not saying that Tesla priced things irresponsibly. I started a project that was $105M in 2020 and now the same project is $130M with very little change other than inflation/escalation. No one could have predicted that. For tesla to keep the same profit margin on the CT as the rest of their cars, there is no more $49k dual motor. You act like people are just asking for the price to go up and that some may even like that. That is wrong. The vast majority is just trying to be realistic about pricing.
I said “their margins will be fine with rational inflation adjustments”.

What I’m suggesting is people are going way beyond rational inflation adjustments. We haven’t seen 50% inflation, yet here we’re talking about 50% price increases on the Cybertruck. That is not rational inflation adjustment, that’s fear driven hyperbole.

The Cybertruck was the better value at launch, it was the better value when Ford launched the F150. If Tesla increases prices on par with what competitors have, it will remain the better value. Tesla has massive pricing advantage on their batteries. They also have a significantly more efficient design which will reduce the battery size for the same range.

This ultimately boils down to the idea that you think Tesla priced the Cybertruck poorly to begin with.
 

Ogre

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F150 xlt 320mi is $80974.

$73474 after 7500 rebate if you qualify
If it’s over $80k… doesn’t qualify for the rebate after Jan 1st!!

Ford has apparently pushed all of their trucks with a useful cross country range out of rebate territory.
 
OP
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If it’s over $80k… doesn’t qualify for the rebate after Jan 1st!!

Ford has apparently pushed all of their trucks with a useful cross country range out of rebate territory.
Ford says the truck qualifies. Its the old ev credit, not what just passed.

Tesla Cybertruck Unless a new class of buyer joins, there will not be many takers at $85k+ for a pickup Screenshot_20220811-140321_Samsung Internet


Tesla Cybertruck Unless a new class of buyer joins, there will not be many takers at $85k+ for a pickup Screenshot_20220811-140248_Samsung Internet
 
 




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