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Long term effect of Tesla Cars price drops on Tesla's Motors brand?

  • 14-01-2023 3:21pm
    Registered Users Posts: 805 ✭✭✭podge1979

    There are obvious ones with the effect on 2nd values which effects their current customers. But will they be seen as premium an niche cars in the future.

    Part of Tesla's success has been the margin the have on cars, higher price more margin. The price drops would take them competing with likes of VW and Hyundai who typically sell higher quantities lower margin.

    Both VW and Hyundai are now trying to go higher end on price to compete with premium brands likes Tesla, BMW and Mercedes brand an reputation wise (having the product to compete is the other question). Looks like Tesla are dropping to compete with not just with the mass market but also the coming Chinese wave.

    Having the tech cheap is one part of it but long term will it effect their brand.

    Look at mobile phones you don't see Apple dropping prices to compete with cheaper Chinese brands (who have the tech too). They justify their price and margin on desirability.

    I personally think long term Tesla are playing a dangerous game dropping prices 33% in a year seems to be sort term solution but will it be a long term gain.

    But no-one complaining about picking up cheap Tesla's now.

    Post edited by podge1979 on



  • Registered Users Posts: 106 ✭✭Dasein

    also has impact on PCP repayments because the future value is a key part of the calculation

    I think it's Finance Ireland providing the PCP financing, they won't have enjoyed yesterday's price cut 😂

  • Registered Users Posts: 805 ✭✭✭podge1979

    Share price effect was interesting on Friday share dropped sharply recovered and kinda leveled off. I suppose would tank more if they report too much Inventory. Drops like the are unheard of so looks it my have come from the top.

  • Moderators, Sports Moderators Posts: 18,126 Mod ✭✭✭✭slave1

    No long term impact, there'll be more happy new Tesla owners versus disgruntled circa 2022 owners

  • Registered Users Posts: 12,539 ✭✭✭✭Danzy

    Tesla will grow market share and become a more established brand.

    There might be some unhappy people in the process but overall..

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  • Moderators, Sports Moderators Posts: 18,126 Mod ✭✭✭✭slave1

    It's their transition from luxury to mainstream, they have the factories now so volume can go up and volume will absorb overheads

  • Registered Users Posts: 1,413 ✭✭✭joe1303l

    Tesla are definitely looking to go after market share and competitive pricing of the likes of the Model Y is certainly going to get results. It’s a car that has mass market appeal, the modern day equivalent of the golf or corolla. What’s happened will be yesterdays news at some point but it could have been handled better or even went for a more creative method to win sales without crushing resale values.

  • Registered Users Posts: 12,539 ✭✭✭✭Danzy

  • Registered Users Posts: 805 ✭✭✭podge1979

    Yes more established, but less premium brand? They'll be duking it out with the likes of Toyota, VW and HKMC with mass market low margin cars? Rather than playing with the BMers and Mercs.

  • Registered Users Posts: 805 ✭✭✭podge1979

    How long till the reaction of "Wow you drive a Tesla" changes to "Meh you drive a Tesla" 😁.

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  • Registered Users Posts: 1,958 ✭✭✭innrain

    Tesla wants to sell 20M cars a year by 2030. BWM or Merc sell about 2M a year. From these figures one can see that Tesla has different target audience. There might be model S or X but those are niche to the main business. Y will replace Golf or Avensis not Class S.

  • Registered Users Posts: 805 ✭✭✭podge1979

    Exactly going from premium high end brand to mass market, remember they lobbed a lot off the price of S also.

  • Registered Users Posts: 801 ✭✭✭Fred Cryton

    Except it's not "just" a car company. The real potential value for Tesla will be in battery storage farms, which the whole world will have to move to if we are to buy into Eamon Ryans vision of the future, and in which Tesla are absolutely cutting edge. I can see a time 10 or 15 years in the future when Tesla will be primarily a renewable energy generation and storage company, with some premium cars tagged on the side. Best to think of it as a conglomerate.

  • Registered Users Posts: 805 ✭✭✭podge1979

    Mass market will not be premium, but interesting point also their approach to battery storage is to the detriment of the cars as they are yet to make them V2L or V2G capable. One of the reasons touted for this is potential internal competition with their storage side of things.

  • Registered Users Posts: 22,684 ✭✭✭✭ted1

    Much bigger than a car company. Their energy business is booming. Large scale mega packs batteries going in around the world.

    also their charging network gives them a supply business

  • Registered Users Posts: 1,163 ✭✭✭MightyMunster

    They were already 15k cheaper than BMW and even bigger difference vs Merc.

  • Registered Users Posts: 1,163 ✭✭✭MightyMunster

    Failed? Achieved it 4 years ago you mean.

    Model 3 isn't an S class Merc, Bentley or whatever you consider premium but neither is a 3 series, Audi A4. While being cheaper, faster, more efficient and much more modern inside. When the Model 3 was launched BMW were still including CD players in their cars.

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  • Registered Users Posts: 805 ✭✭✭podge1979

    What cars are you quoting there, take the X1i and i4 they would be fairly much equivalent to M3 and MY LR they were pretty much in the same price bracket before the price drop.

  • Registered Users Posts: 17,279 ✭✭✭✭Mantis Toboggan

  • Registered Users Posts: 1,163 ✭✭✭MightyMunster

    Is this directed at me? I4 M50 "from" 85k for example vs a M3P at 65.

    The X1i I had to look up but starts in the mid 60s which was 10k more than Model 3, now 20k more. Same with the 3 series we have at home, 20k more than a M3 now too.

  • Moderators, Society & Culture Moderators Posts: 36,488 Mod ✭✭✭✭Gumbo

  • Registered Users Posts: 1,163 ✭✭✭MightyMunster

    I especially hate it since it started being used in every other post related to a certain Munich based company

  • Moderators, Society & Culture Moderators Posts: 36,488 Mod ✭✭✭✭Gumbo

    The Model 3 was never premium. It’s the everyday saloon. It’s the 3 series, A4 of years gone by. In a few years they will be everywhere.

    There is no premium EV in this price bracket IMO

    There be a niche version within, the same way bmw had the M3, Audi had the S4 and that’s where the Performance models will sit.

    The new price lists is where Tesla should be. Expensive enough for what you get but also cheap enough for what you get.

    For €66k, you can have a 500bhp saloon (M3P) that you can drive to mondello in, with the kids, race around the track, keeping up with everything and then drive home in with the kids in their car seats.

    Incan hit the run way club, do a few 1km runs keeping up with mega German cars that cost twice as much. I’m happy with that.

  • Registered Users Posts: 805 ✭✭✭podge1979

    I4 starts at 68k, and high spec at that.

    X1i is a SUV so comparable with the MY and at similar price prior to the double price cut in the last few months starts around early 60's which the MY used to be at.

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  • Moderators, Society & Culture Moderators Posts: 36,488 Mod ✭✭✭✭Gumbo

    €68,825 for the sport which is the old SE Trim. So base trim.

    Decent car, really well put together, but inside lets it down IMO.

    spec wise, ok pros and cons but not as high as basic Tesla. TACC, €1k extra. Adaptive lights, extra. No sunroof/glass roof. But still, it’s a bmw. It will be priced higher for the badge. That’s how it’s always been.