When will Tesla raise prices on the CT?

[Tinker71]

If Tesla has 4 years of backlog and the inflation rate is 2.5% for the next 4 years then a CT produced in 2025 would cost more than 10% more to build than the same one in 2022. I would imagine some cost would come down with equipment being spread over more units, but probably not materials.

When will we see a price change?

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[Jhodgesatmb]

When they put new prices on their order page.

 

[DarinCT]

If Tesla has 4 years of backlog and the inflation rate is 2.5% for the next 4 years then a CT produced in 2025 would cost more than 10% more to build than the same one in 2022. I would imagine some cost would come down with equipment being spread over more units, but probably not materials.

When will we see a price change?

I can see before the first ones are delivered as a giant FU as well as the old sales tactic "buy now before they go up again".

I can see after the first ones are delivered. Proven product, known costs, known demand.

The Model 3 prices and variants changed considerately. I don't think the same thinking goes for the CyberTruck, though I'm sure some amount of price change (up) will occur before mid-2022.

 

[Jhodgesatmb]

I can see before the first ones are delivered as a giant FU as well as the old sales tactic "buy now before they go up again".

I can see after the first ones are delivered. Proven product, known costs, known demand.

The Model 3 prices and variants changed considerately. I don't think the same thinking goes for the CyberTruck, though I'm sure some amount of price change (up) will occur before mid-2022.

I disagree but what I say is unimportant. Tesla prices fluctuate but I haven’t seen Model 3 prices up or down very much. The top end vehicle prices have changed, mostly downward. I do not know when or if Tesla will change CT prices but it is not like other auto companies. It’s mission isn’t profit but social change.

 

[Crissa]

If Tesla has 4 years of backlog and the inflation rate ... then a CT produced in 2025 would cost more...

That's not how inflation works.

Labor would cost more, other things probably not.

-Crissa

 

[Jhodgesatmb]

That's not how inflation works.

Labor would cost more, other things probably not.

-Crissa

You are right. When there is inflation. Your crystal ball predicts a certain amount of inflation in an economy that no one can predict ‘anything’ for. Labor rates go up when there is a strong economy, not when millions are out of work. Why not let Tesla figure out when and if to change their pricing. Maybe they will change their pricing after they fulfill the preorders that have been reserved, I don’t know.

 

[Crissa]

Inflation is a measure of core prices affecting a household's expenses. This primarily affect labor costs, as people definitely want to be able to afford their basic needs, but since nearly everything is made with labor, it can increase other costs.

But the thing is, inflation isn't a 'thing'. All prices go up or down based on various demands of markets, regulation, and even fashion. Tech prices - and the prices of most basic manufactured widgets - generally goes down as the relative labor and complexity to make them goes down over time. Resources can shifts based upon extraction and recovery, bottlenecks (like the Ever Given grounding), or new extraction methods. Technology every so slowly increases our ability to do both manufacture and extraction in less costly ways, but it does it in inconsistent leaps in different sectors of the economy. Inflation is merely a measure of how these forces have affected the very core things people consume, primarily their food, and secondarily their durable goods.

Healthcare, housing aren't even considered. These two go up at their own slopes: As we learn more things to take care of our health, that means we purchase more healthcare per person. And healthcare can be very labor intensive. Housing has no reason to go up, but there are many forces - most notably NIMBYism and population growth - which force these to go up, as very little of it is labor.

But something like a car has no natural reason to go up in cost. The widgets it's made of will become cheaper to produce over time. But as labor costs rise, demand rises for more value in the product - and that raises the cost. Like healthcare, all those things added to cars today that weren't there thirty years ago raises the basic cost.

That's not really going to happen for Tesla's vehicles, at least, not in the near term. Their factories will get more efficient, and they will use fewer parts, and their products will get cheaper.

The computer on wheels.

-Crissa

 

[rr6013]

Tesla’s famous build a machine to build machines mantra presages cheaper BEV. EV’s sweetspot is south of its current pricing. Majority of car owners can’t afford to buy $40k USD cars, cheaper TCO be damned. This Golden EV Age will sunset as vanilla EV cars priced in the $22—32k range blossom in a hunt for the bottom market.

USA infrastructures are fully built. More vehicles are not a goal on US roadways so there exists a fixed upper limit constraint. ICE era never felt full utilization as a constraint on sales. The next two decades will be R&R (remove and replacement) for all ICE vehicles. Then?

Crickets… as million mile golden age BEV cars meet whatever competes for the next generation’s idea of wide open freedom.

 

[Frankenblob]

Unless Tesla wants to absorb the increase in material costs ( up to a point it may be ok - but it will be a bad business idea after awhile) they will be increasing the prices. Whether they slip it in the cost of FSD or Autopilot lets see.

1980 - $20.00 of groceries produced a good haul.

2010 - $20.00 of groceries got less than half of 1980's haul.

2021 - $20.00 of groceries gets a "pack of cigs" and some milk.

Inflation is hidden in many forms I.e. higher taxes, smaller food packages with higher costs, fantastic amounts of money printing, house prices, stock market, devaluation of the dollar....

How much the CT will increase??? Let's see.

 

[Tinker71]

That's not how inflation works.

Labor would cost more, other things probably not.

-Crissa

Automotive manufacturing may be resistant to price escalation since most of those cost are occurring now and next year. Also Tesla's foresight to remove as much of the rarer metals from their batteries means supply should keep up with demand in the next couple years.

That said. $50,000 in 2025 will generally buy you less than it will today. Maybe not vehicles but everything else. With $3 trillion in proposed stimulus inflation may be a little tricky and 4 years of back log is a long time to hold prices steady.

 

[empiredown]

What is with all these threads that price increases are a foregone conclusion or that there is no way Tesla can build the truck for "z" cost? As if any of us outsiders have any idea what z is... They've done their adds and takeaways long before they launched. They are going to make plenty of money, even if it's not as much as it once was. You want to see this truck tank? Go ahead and jack up the price some more and see how many punters bail. That's even beyond those that are going to bail after getting their entertainment for the 100 bucks they have provided as a free loan.

As we discussed before: They would rather sell double x cars and make y than sell x cars and possibly not even make y as a result...

SS

 

[taco]

When they put new prices on their order page.

lol!

 

[Crissa]

How much the CT will increase??? Let's see.

That is not how inflation works. And your idea of how groceries work is massively oversold.
https://www.usinflationcalculator.com/inflation/milk-prices-adjusted-for-inflation/

Yes, the price of a gallon of milk has gone up by a couple dollars since 1980. But compared to inflation - which compares all core prices - it has gone down. Same for ground meat. Cereal actually has gone down in price for the same product, not compared to inflation... but the amount the price swings has gone up.

The number of employees at these stores and suppliers hasn't halved. So they still need to be paid. So that increases the prices. That's inflation.

The amount of metal in a car has actually gone down since the 70s. While overall they've weighed more, it's because they have more features.

There aren't going to be any new hardware requirements to cars in the near term. So no, the Cybertruck will not increase in price.

-Crissa

 

[Crissa]

I always laugh when I read social change not profit. Evidently that does not apply to FSD which continued to rise even though many people sold cars they paid for it to be on yet it never was and you really don't own it as it doesn't transfer with the sale. Yeah, it's profit no matter what Elon says.

Tesla cannot actually access the FSD monies until they release features. It sits in an account, waiting for them.

That's why they've release enhanced autopilot features, to access this money.

-Crissa

 

[Newton]

Tesla cannot actually access the FSD monies until they release features. It sits in an account, waiting for them.

That's why they've release enhanced autopilot features, to access this money.

-Crissa

I have no idea how any of this works, but didn't you just basically say...

I can't use this money you gave me for the taco I promised you, but here have a half uncooked tortilla. Ok NOW I can.

So they can get at the money np, and have a free loan.

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