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

liamog

https://www.boards.ie/discussion/comment/120115071#Comment_120115071

You'd be a long time travelling to your service appointment

Gumbo

https://www.boards.ie/discussion/comment/120115160#Comment_120115160

They come to you or else sandyford.

Handy for city folk. One Luas leaves me home if required.

slave1

In fairness the SC is not faultless, they struggle with staff knowledge and turnover and have very poor inventory holdings even for day to day parts and Tesla do not do air freight so all parts come over land/ferry from the Netherlands

liamog

https://www.boards.ie/discussion/comment/120115287#Comment_120115287

That's terrible, I'd of expected US customers to be going to service appointments in North America.

LasersGoPewPew

There's a lot angry people which is understandable. I am delighted that they've dropped their prices. I hope they fall further to sub 40k for M3 SR and MY. I hope Tesla go for volume and smaller margins like Toyota.

It's badly needed as part of the equation to accelerate EV adoption, Tesla are the only brand that offer great efficiency, extensive features and quick updates on their cars. Others need to follow suit and reduce their prices because the likes of VW and Korean brands are very expensive these days.

...Ghost...

https://www.boards.ie/discussion/comment/120114058#Comment_120114058

OK, using your PCP figures and ignoring the balloon payment, are you suggesting that someone spending over €400 per month couldn't afford to pay €600 (your figure) on a Model 3 with fuel included? I don't buy that figure, but hey, I thought I would ask. Let's do the sums for clarity.

The Tucson gets an average real world MPG of 40. Your 80km is 50 miles per day, 250 per week, 1000 per month. Cost 200-240 per month depending which average MPG you take. With PCP on top, that's 470-510 per month....leave it at 500 to keep it simple. Tax is higher etc.

The same 1000 miles or 1600 kilometers in a Model 3 RWD would use 240 kWh (average 15kWh per 100km). At 15c per kWh, that's €36. The Model 3 according to the figures you posted was €480pm on PCP. add €36...round her up to €40 for some spirited driving and we have €520.

Sorry, but i'm not getting where the Model 3 is costing 50% more....certainly not on TCO.

Adding in hybrid and remote working is muddying the waters. We have been talking about people doing reasonable commutes every day. Let's leave out the folk spending 1 day a week in the office.

sh81722

If you are staying with Tesla the cost of change will stay the same than before the the discounts. There will also be bigger potential second hand market for used Teslas that suddenly are much cheaper than before Friday the 13th.

I got offered €53k for my 211-reg 3 LR earlier in 2022 to trade for Y LR which at that time was €73k. So cost of change would have been 20k approx. Now if I was going to do the same trade in one year later I would only have to get €34k for my car. I suspect it would be quite easy to sell a spotless 53k km 211 Model 3 LR for €35k or even for a few k€ more. So the cost of change would actually be less now in 2023 than what it was almost 1 year and 20k km ago. The EV grant muddies the waters in this example but it's still a valid case of one current owner.

To me this sounds great actually as suddenly our 10-15k cheaper used Tesla has a much bigger potential second hand market: It now competes with likes of a new Peugeot e2008 or 40 kWh LEAF and undercuts a Kia eNiro by a wide margin. If I wanted a non-Tesla instead the situation would be different unless the other makers also started to compete in price.

Gumbo

https://www.boards.ie/discussion/comment/120119016#Comment_120119016

Not many understand this. I’ve been posting it on the groups but they don’t get it.

LasersGoPewPew

https://www.boards.ie/discussion/comment/120119016#Comment_120119016

If I could buy a 211 M3 LR for 35-37k I'd absolutely jump at that opportunity. PM cars my way lads😂

kanuseeme

A smart move would have been to have a sale on their existing stock before introducing the price drop, there is SR 3 2019 for 42k, who in their right mind would buy that now?

I count 14 M3 on their site and all have lost value. Their own worst enemy.

sh81722

https://www.boards.ie/discussion/comment/120119176#Comment_120119176

It's all funny money for Tesla themselves. They are here to keep selling the new cars and the second hand stock will just be discounted or offloaded for trade if they don't shift. The second hand only dealers are a different ball game though if they bought expensively with real money. They and the taxman lose and the consumer wins here I think.

Red Silurian

https://www.boards.ie/discussion/comment/120119016#Comment_120119016

There is actually a slight benefit as well, if your car is worth less then your insurance should, in theory, also reduce in price

podge1979

https://www.boards.ie/discussion/comment/120118150#Comment_120118150

Sorry you lost me with the first line looks like 200 euro a month is no biggie to you but someone might be stretching with deposit and monthly payments even at that.

And the answer is yes speaking from experience prior to my current car I had decided to go new as the second hand cars I had before that were starting to cost me too much (repairs) also had a baby on the way and wanted something more comfortable. I initially was going for a Octavia on pcp around 280 I think back then but wondered into an Audi dealership for a browse and ended up with an A3 for 340 a month (was stretching at that so yes 60 euro was a lot). Since then did fairly well work wise (missus too) and can afford an EV which I'm driving for the last year and I'm well aware of the savings.

Secondly someone doing that milage like I was would have to get an ev (perhaps MG or leaf or even 2nd Model 3 now if they drop at a cost of around 30k mark) but people who work from home or run about milage expense in relation to big milage would be less of an issue so a corolla or Tuscan maybe more cost effective.

But have to say fair play to ya if 200 euro a month increase 400 to 600 and you wouldn't bat an eye lid to it maybe you should have stretched to a model S yourself 😉

Newoven

https://www.boards.ie/discussion/comment/120119045#Comment_120119045

Probably because it’s wrong. Whether changing to another Tesla or a different car the fact remains that this price cut has chopped €8k or so from the value of cars bought in 2022, including my M3 RWD bought for €52k last February. Just because a tesla can be had cheaper when we change car doesn’t change the maths, it just means that only Teslas will be in budget. Tesla has chosen to undercut the value of an asset it sold to us at a time when the market values for EVs overall hasn’t significantly changed. We didn’t buy a speculative asset from Tesla, these aren’t shares or crypto. I was already unimpressed by Musk and his madness, this makes me highly unlikely to buy another car from him.

By the way when considering cutting prices did tesla management consider also cutting supercharger prices? That’s one way to ease the hit for existing owners.

Gumbo

https://www.boards.ie/discussion/comment/120122187#Comment_120122187

BMW done the same in 2013 when they start importing the "Sterling Collection".

Over night, every Irish car bought in the first half of 2013 devalued to the cost of a UK import because the dealers were bringing them to sell at a discounted price.

Many bought into the Tesla brand thinking they could a year or more and sell for the same money. In these forums many have been posting that the second hand car market significantly cooled in the summer of 2022, I posted it myself many times. My car is devalued too.

kanuseeme

How is Tesla on trade in's?

Just now on the website, there is a 2019 m3 SR for 42k. Has their trade-in valuation procedures caught up with the new sale price?

If you can get the same high valuation on a trade-in, it would be one way to play the system.

ElitesTeam

https://www.boards.ie/discussion/comment/120123673#Comment_120123673

They have not updated used prices.

Would be worth trying so see what they offer

Gumbo

https://www.boards.ie/discussion/comment/120123673#Comment_120123673

Submit the details and they get back to you. But, Tesla generally give better trade in values on teslas that they can actually sell, similar to bmw, Audi etc

Best bet is to test the waters on the trade in while also selling on DoneDeal and submitting to the trade buyers.

WattsUp

https://www.boards.ie/discussion/comment/120122187#Comment_120122187

They just dropped supercharge rates to 45c and 50c peak between 4pm and 8pm

slave1

https://www.boards.ie/discussion/comment/120123691#Comment_120123691

Good luck with that, I have my trade in with them since week before last, they have a huge backlog

galwaytt

https://www.boards.ie/discussion/comment/120108911#Comment_120108911

eh, 'premium' is subjective. 'niche' brand is more apt.

They won't hit 'premium' until quality matches the other players: NVH, fit & finish, paint etc. They're not at that level yet.

carsfan2

Here's Why Tesla Car Values Have Dropped So Fast - YouTube

Doug De Muro is a car guy who knows his stuff. I think his assessment here, while US centric is spot on with relation to attitudes to the brand and a lack of new product etc.

...Ghost...

https://www.boards.ie/discussion/comment/120121980#Comment_120121980

I lost you at the first line and you go on to write a short novel in response!! 😂

Seriously though, you should go back then and read the rest, starting from paragraph 2 if you skipped ahead. Based on your figures, the Tesla is really only €20 per month more than the Tuscon.....cheaper if we include motor tax. Way cheaper if we start to talk about servicing and maintenance after the first year.

Great to read you are enjoying your EV and your situation has improved from when you were driving an older and expensive to run ICE. Some of them can become real guzzlers, as was the case of my Opel.

bf

https://www.boards.ie/discussion/comment/120124051#Comment_120124051

Strange, I got a trade in value back in less than 24 hours this week!

podge1979

https://www.boards.ie/discussion/comment/120126158#Comment_120126158

Your a bit of a wordsworth yourself!!

Its only 20 euro more if your doing big milage to justify it and as I said then buying a corolla/Skoda (2nd hand Tesla now) my be the option for sub 30k car.

Even on fuel saving a 40k+ car is not an option for many.

Newoven

https://www.boards.ie/discussion/comment/120123853#Comment_120123853

I’m struggling to see any reference to this. Do you have a link?

joe1303l

https://www.boards.ie/discussion/comment/120126515#Comment_120126515

How bad was it ?

Old diesel

A devaluation of Model 3 prices was inevitable.

2nd hand ones were nearly the price of a new one.

The old price of a new one.

Was unsustainable

rdhma

They could have held prices steady and rampant inflation would have done the job for them.

Anyway, won't harm the brand long term, the EV early-ish adopter pricing couldn't last, interiors etc. did not match the price tag.

With more Chinese EVs on the horizon, they would have had no choice but to drop prices anyway or lose market share, e.g BYD Atto 4 still undercuts Model 3.

MightyMunster

https://www.boards.ie/discussion/comment/120127136#Comment_120127136

Click on a supercharger on the car navigation and it gives the prices