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

Very true

Brand perception is a funny thing. How people define the likes of premium. I look at the current Tesla lineup and I just don't see it as a premium brand at all, maybe when it was just the S & X I'd agree, but the second their focus shifted to the 3 (and subsequently the Y) and largely abandoned the 100k segment those notions were gone. Remember the 3 was to be their 35,000 dollar mass market play. And while they completely failed to deliver on those prices, those cars have have all the hallmarks of their cost centric development. I really don't know where the idea of Premium with their current offerings comes from.

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.

100% agree

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.

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

Tesla have dropped prices because of dwindling order books and needed to stimulate things to generate business and keep their factories busy as far as I can see. I think this will work in the short term but it’s a dangerous game they are playing and will annoy existing owners who have seen huge chunks wiped off the value of their cars.

Trust in the brand will surely be eroded and I think the shine has well and truly come off it already with the antics of Musk who is the only advertising and PR the company appear to have.

I think the brand’s biggest problem going forward however is a lack of different looking new products. You need to make discernible changes to models to encourage new buyers and entice existing owners to trade up. There’s a reason conventional manufacturers do a mid life refresh and a whole new model every few years and publicise it and that is to maintain demand. People need to see differences between what they have and see around them to want the new car. Premium manufacturers are masters at this.

The current model 3 may be virtually a completely different car to the original ones that rolled out but they are virtually identical to the man in the street. Even the newest model S looks the same as a seven year old one. Tesla need to copy traditional manufacturers in my view to keep going otherwise they will be bought out by a rival as their share price drops more and I think the price drops may well accelerate this drop.

once you think perfection has been achieved progress stops !!!

There is always room for change and room for improvement. Tesla not changing the basic look of the car for years helps cut costs in tooling and production. As a long term play I'm not sure how buyers will take it ... would you upgrade your 5 year old Tesla for something that looks identical ? some will ... many won't

Lots of talk here about premium, but what does that even mean anymore? Premium seems to be still associated with legacy manufacturers in Europe who make and sell expensive cars with the latest features, cutting edge technologies and great performance with quality build and materials.

Whatever about the price drop which has wiped thousands off the price of my recently collected M3, I am still driving what I consider to be a premium car, because it has the hallmarks listed above. I've owned most of the so called premium brands and aside from the fact they were ICE vehicles, the only notable differences worth mentioning were the amount of buttons in them and the enclosed driver feeling (especially in the BMW) which was very snug.

Unless I have good reason not to, I will stick with the Tesla brand. A new car price drop affects used car prices, but sticking with the same brand this drop just means that getting a second Tesla for the household just became way more affordable.

Tesla is now a more mainstream brand than it ever was, with lots of cars on the road. This price drop May have come to a shock to many recent new to EV/Tesla, but for those who have been Tesla owners or followers for longer, this isn’t anything out of the ordinary - the profit margin they have in cars is way bigger than any other manufacturer, so they can be flexible.

It’s just as probable that there could be a decent price rise again in next 12/18 months as another price cut

"manufacturers don’t make money updating your software for free ina car they’ve already sold you"

I'd have to disagree there. One of the biggest reasons I chose a Tesla was because they regularly update and improve the cars with software updates. I bet that alone is a distinct reason many lean toward Tesla purchases and that in itself increases Tesla sales revenue and profit. The idea that an issue can be fixed over the air without having to go to the dealer is a huge plus.

My top reasons in order of importance were:

Safety

Range

OTA updates

Desirability

Access to public charging network

Apple have always been about innovation and style at a high price. They have never made this a secret. However, Musk has been saying for the last decade what the plan with Tesla was. In essence; make a really desirable and expensive electric sports car for the rich...Roadster. Use this money to make a really desirable high end saloon/family car to sell at lower prices in larger numbers to the upper middle class....Model S. They added Model X in there too moreso as a higher end vehicle with more bells and whistles. Finally, use the profits to grow and produce a main stream EV for the masses to afford...Model 3. Later adding Model Y for those looking for a roomier hatch.

Tesla had first mover advantage (more or less), but they haven't flipped at all. It was always the plan to get as many affordable EVs out there as possible while still creating an desirable and efficient product. I would say they are well within the original goals set.