Quote:
Originally Posted by Onesie
You can try to offend me but that doesn’t make you right…
The car had a price reduction in the US (not in Canada, for example) because the Feds made Tesla lower it by virtue of offering a rebate to folks that buy cars that are less than 55k.
So, Tesla, because it has high margins (due to low cost of production), has leeway to lower prices so customers can benefit from the rebate.
If it hadn’t done so, their cars would be priced out of the market.
E.g.: say you are comparing a Tesla at 60-65 against another brand that sells for 55. People were willing to pay the premium for a Tesla before. This 55 car with a 7.5k rebate is sold for 47.5k.
60-65-47.5 = 12.5~17.5k difference.
Now they’re not competing anymore.
Lower the price to 55, your Tesla is now super competitive and you can offset some of the loss in margin by selling a crapshoot more units. This is very basic.
Sum this up with the fact that Tesla seems to now have a surplus of cars (no longer a huge waiting list) and it’s a perfect scenario for prices to be lowered.
In sum: things are only expensive when people are not willing to pay for them (as I said). People were more than happy to pay the asking price.
When you factor in a government rebate that would essentially make their cars at least 7.5k more expensive, it is no longer the case. Not priced by Tesla. Priced by the government. Then they would be “expensive” (i.e. people would no longer pay for them).
So, to answer your silly attempt at a dig by using a rhetorical question: why did Tesla lower their prices in the US? To make sure their cars didn’t all of a sudden become expensive.
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That's a great spin on the situation but the tax credits on most Teslas expired a long time ago in the USA... so again this is just to keep the cars as cheap as possible for as long as possible because competitor entrants are now getting significantly better at an equal or competitive price... the BMW i4 M50 is 65k lol... i want to find the person that takes a Tesla Model 3 performance over that... Which again just says... people are unwilling to pay those prices for quite some time now and the recent quarter results prove that.