Tesla cutting prices

Graham

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mk2driver said:
I think they are simply panicking to hit volume targets

As I posted in the Musk Twitter thread - now they have done this they aren’t going to be able to put the price up again in these models, the market won’t take it

This could lead to a drop in profit and free cash flow which in the long run could be a bad downward spiral
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Sounds like most makers 4-5 years ago. 'Pre-reg' cars only existed so that UK could meet EU targets to meet targets of the parent company wherever they existed. And it was a great way to flog off overproduction.

I could have sold a dealer demo to a mate last year, after having it for a weekend and getting them a run in it. Dealer couldn't sell it as it would take them at least 12m to replace the car. During which time they couldn't let potential customers see or drive the model they are about to part with £26k for.
 

KyleR

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We shouldn't forget that it wasn't too long ago that Tesla upped their prices to slow demand due to supply issues. Maybe their supply issues are now fixed...
 

Graham2

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ahannigan said:
Is 10k per year normal? My car was £50k new in 2020 and is worth £40k today. Cheapest on autotrader is actually a 2018 at £41k.
Granted it’s “limited” edition-ish, and I’ve not paid much attention to car depreciation in the past but I had a LY 200 Clio that I paid £26k for and 3 years later for £9500!

Edit - I’ve just realised it’s 2023 and that could be 3 years old. Doh.
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Yea you're really talking 3 years technically now and the ones at £30k are higher miles 50/60k+. A lower mileage car is nearer £35k so £5.5/6k a year.

Tesla's reason for cutting their prices was cited as costs within their supply chain reducing, would be an uncommon move if it was true. That being said, Tesla make more profit per vehicle than any other manufacturer (average just under €10k) so they do have room to move and still make a good profit.
 

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It's not just Tesla though.

Tesla needs to meet sales targets and seem to have stock to clear. Combined with a general slow-down. I don't see why they couldn't put prices back up again later if demand picks up again.

Used car dealers will just have to place their bets like they always do. Dump prices to cut their losses, or bet on riding it out and demand picking up again. It was the same at the start of Covid for example.

Tesla specifically also need to make up for falling income from other revenue streams of theirs. From batteries to carbon offset credits they have sold to other manufacturers. Those other manufacturers don't need Tesla for that so much any more and that "market" is getting smaller.

On the "other side" we have manufacturers who also make ICE cars pre-reg an awful lot of EVs in December to meet overall emissions targets. Those cars will also have to be off-loaded at some point. And if demand doesn't pick up again in 2023 then that means a fire-sale for them too.

More taxes will be hitting EVs in the next year or two. There are massive budget holes to fill. First excise duty, then raised BIC, and so on. That will affect demand and prices too.

It will genuinely be interesting to see how this all plays out over the next couple of years.

Happy days for everyone who's been in on the great tax dodge the last few years.

I honestly have no idea how it will end, but someone will have to pay at some point. The current low-tax/high incentive model clearly isn't sustainable.
 

Nigelo

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Woah, Agnews have chopped a few thou off their 2nd hand Teslas .... The cheapest M3P is a useful sub-£40 now, albeit with some chunky stone chips.
 

Charlieboyoo

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Nigelo said:
Woah, Agnews have chopped a few thou off their 2nd hand Teslas .... The cheapest M3P is a useful sub-£40 now, albeit with some chunky stone chips.
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I actually drove one of the teslas,they apparently knocked £10k off them.That’s what they showed me.Must admit,I did have fun driving one.But the question is are they going to hold money or cliff edge.
 

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They are trying to meet sales expectations of investors to get the shares and the value of Tesla back in shape. In the face of a general slowdown in the economy pretty much world wide.

Assuming these discounts are temporary then it shouldn't affect second hand prices long term. I guess that's the big question - are they temporary or not?

I expect other manufacturers in the EU at least to have stock to shift too. They all had a lot of pre-registrations in December to meet overall manufacturer emissions targets in the EU. I don't know if they will need to discount that or if they have enough of a sales pipeline to absorb it.

In the UK there are also changes to EV taxation coming up. That could affect prices as well.

Interesting times indeed.
 

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Nope, same with our lease company. But we can basically only get whatever they have pre-ordered and have on the lot. So likely they haven't actually seen these discounts yet.

Anything they don't have in pre-ordered stock is 6-18 months waiting time 🙈
 

mike150

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I want to buy a Model 3 Performance but when?????

I don't need one! I've a perfect daily but want another EV and the price of a Model 3 is making it attractive however I don't want to jump in
 

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Surely any losses are on the lease company/finance company? Does anyone actually buy an EV outright?
 

Charlieboyoo

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Jason said:
Ours lost approx £3k in 2 weeks I traded it out ! I wasn’t going to risk loosing anymore.
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That’s bad like,I’m not trying to make you feel better but today I was talking to someone and their colleague bought one last month and lost £15k in a month.bought one from Agnew auto exchange
 

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mike150 said:
I've never bought a car any other way. I can't get my head around paying 5 6 700 a month + a down payment + being tied to a deal for 2 or 3 years 🤯

F that
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Oh totally agree! Never gone anywhere near it myself. But I've never bought a brand new car either, don't see the point. Even with the BIC thing on EV they're still not exactly cheap for what they actually are beyond the hype...

It's obviously different when buying on a business. But most people don't do that.

Just surprised people are surprised their brand new cars are worth a lot less the instant they drive out of the show room. It's always been like that. Sure, there's been some madness for certain cars the last couple of crazy years, but surely nobody thought that was going to last forever?
 
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