Buggrit, Across the Board Tesla Price Increases

[Crissa]

Their wait times just shot up to next fall, so... Makes sense.

-Crissa

 

[Challeco]

With what I have experienced in maintenance costs, fuel, and just regular pain-in-the-ass'ery with my I.C.E. vehicles compared to my Model 3, I am still fully in the "take my money" mode. I reserved a dual motor CT, but if I have the opportunity and the credit, I am upgrading. I want the carbon fiber wrapped motors and the large battery pack. It ain't about need at this point.

 

[TruckElectric]

Musk just made a comment about Tesla being under significant inflationary pressure.

No company is immune to inflation, not even Tesla.

 

[Tinker71]

Elon suspected the Y would replace the Toyota Camry as the number 1 car in the world. That is upper middle class. Middle class still have to think value. Take this Avalon at $40,000 add 3488 gallons of gas at $4.00 (150,000 miles/43 mpg) for $13,953 so you are at $53,953.

While the Y is better for many reasons it will not meet the value criteria to be that #1 car at these prices.

I wanted a Tesla bad, but I am still solidly upper middle class. The $23,000 Corolla Cross looks like a compelling vehicle to bridge until the Y is reasonable. No hassle for 100,000 miles at half the cost of a Y ABBA car.

Bottom line ICE is going to fight back to maintain market share. Tesla will have to lower prices eventually.

 

[egandalf]

RJ Scaringe is probably looking at Tesla price bumps on Twitter and screaming.

They blundered their pricing swap so badly now they are bent over a barrel.

Basically yes.

They projected the price, maintained the price, and let the press freely talk about the price as if it were set. Had they slowly raised prices (as Tesla is doing) or communicated better through these channels, they might have been able to pull it off. Now they're biting a huge chunk out of their own revenues and putting it directly into negative margins.

I hope to get my Rivian later this year (with instant 20% appreciation applied), but will likely only drive it until my CT RN comes up in the queue. However long THAT takes...

 

[BillyGee]

And my decision to pull the trigger on my Model Y last fall continues to be further justified.

 

[Tinker71]

Buggrit, millennium hand and shrimp







That kind of tears it for me. I’ve been a long holdout, but now I’m reindexing my expectations for Dual Motor Cybertruck to the Model Y AWD at this point. If that happens, the only way I’m getting the CT3 is if I hit the TSLA Jackpot (we beat the previous ATH before my truck is delivered).

Hopefully I will be pleasantly surprised.

Not really related, but I wonder if Tesla Fremont Y will be discounted a little from Austin Y on a cost per mile of range basis. By all measures the Fremont Y is still a darn good car, while the Austin Y may be ? 5% more efficient?

 

[Dusty]

I've been struggling for a few weeks since getting my Jeep back from the shop. It's worth very close to more than what I paid for it 6 years ago, and has been paid off for a while. I can sell it and get a MYP for $30k and an 8 week wait.

My Jeep will never be worth more than it is right now and new auto prices have been marching up. I need to decide.

 

[Ogre]

While the Y is better for many reasons it will not meet the value criteria to be that #1 car at these prices.

Tesla knows this. I’m pretty sure that’s why they got 2 new shorter range models pushed past the EPA. They are prepping to slot 2 lower cost models underneath the AWD LR. That will bring the base price of the Model Y back down around $55-57k. (With shorter range, but it’s competition has shorter range regardless)

I wanted a Tesla bad, but I am still solidly upper middle class.

I hear you. I don’t know that I’d buy my car right now. If I’d realized mine would be worth $14k more I’d have bought 2 a year ago!

 

[Ogre]

Not really related, but I wonder if Tesla Fremont Y will be discounted a little from Austin Y on a cost per mile of range basis. By all measures the Fremont Y is still a darn good car, while the Austin Y may be ? 5% more efficient?

I have to think the new configurations they passed will come into play with Fremont deliveries.

The whole problem with what to do with Fremont versus Austin Model Y deliveries is on everyone’s mind.

 

[Tinker71]

I have to think the new configurations they passed will come into play with Fremont deliveries.

The whole problem with what to do with Fremont versus Austin Model Y deliveries is on everyone’s mind.

I think it will be easy once they post prices. A couple thousand less and earlier delivery for the comparable but different Fremont edition aught to do it. The hard part will be existing orders not specified. I suspect the Tesla sales team will just reach out to those folks and ask them what direction they want to take, but since nothing is really secret, the Fremont edition will be discounted a little and will be obtained earlier. We might see a couple price adjustments in the next 6? months until Fremont converts over.

Do you happen to know if the M3 is going to get the structural pack? It is supposed to share 80% of the parts with the Y if I recall.

 

[Ogre]

I think it will be easy once they post prices. A couple thousand less and earlier delivery for the comparable but different Fremont edition aught to do it. The hard part will be existing orders not specified. I suspect the Tesla sales team will just reach out to those folks and ask them what direction they want to take, but since nothing is really secret, the Fremont edition will be discounted a little and will be obtained earlier. We might see a couple price adjustments in the next 6? months until Fremont converts over.

Do you happen to know if the M3 is going to get the structural pack? It is supposed to share 80% of the parts with the Y if I recall.

I think these new models will be instrumental in the Fremont/ Austin chaos. A lot of people have seen deliveries slipping back to September. I bet they start sending out emails to people giving them the option to switch to the new config if they want an earlier delivery. That’s how they rolled out the LFP packs on the Model 3 and it worked well.

So Model Y LR comes out of Austin on the slow delivery path, the 2 new shorter range versions come out of Fremont faster and cheaper.

Model 3 maybe gets 4680/ structural pack once they convert Fremont over to 4680? Really hard to say, they still have a lot of 2170 cells coming in.

 

[Crissa]

They need the supply of 4680 cells to exceed the number needed for Y, Cybertruck, and Semi, before they can port it to the 3.

The pack used in the 3 is structurally similar to the structural pack - just it weighs more for less batteries.

The theory at Tesla Daily is the new lower range cars are the Austin Ys. People buying those won't be as picky.


Timepoint 3:07

-Crissa

 

[PaulS]

Tesla knows this. I’m pretty sure that’s why they got 2 new shorter range models pushed past the EPA. They are prepping to slot 2 lower cost models underneath the AWD LR. That will bring the base price of the Model Y back down around $55-57k. (With shorter range, but it’s competition has shorter range regardless)

I don't think Tesla intended for shorter range Model Ys. Tesla was waiting for a Certificate of Conformity for their 4680 Model Y from the EPA. They were awarded it this February, and then the EPA posted information on a 279 mile range Modle Y. This Y was only 1.6% or so more efficient than the current Y, and had a lot less capacity in its battery pack.

I think Tesla tried to build a 4680 Model Y with too few cells to match the current 2170 Model Y. They may have overestimated their 4680 cells and/or the structural battery pack. Now they're awaiting approval on another model, perhaps a Model Y with more 4680s to match the range of the current Model Y.

 

[Challeco]

I've been struggling for a few weeks since getting my Jeep back from the shop. It's worth very close to more than what I paid for it 6 years ago, and has been paid off for a while. I can sell it and get a MYP for $30k and an 8 week wait.

My Jeep will never be worth more than it is right now and new auto prices have been marching up. I need to decide.

If you can swing the financing, order the model Y, pay the fee and wait for the delivery date confirmation before you sell the Jeep. Then, use the jeep proceeds to pay down the Tesla loan instead of as a down payment. That way you can still enjoy the jeep's utility until the model Y is closer to delivery.