Model X

Price adjustment for pending deliveries?

edited March 2019 in Model X
We are scheduled to take delivery in a few days on our Model X. Of course today, Elon announced major price cuts and our model is now $10,000 cheaper. Is it possible to have them adjust the price to the new one?

Comments

  • edited March 2019
    This price cut is unprecedented, and I think Tesla will alienate a lot of recent buyers.
    I would hope that people that have yet to take delivery would have the price adjusted.

    Having a car that loses $22K dollars of value even before you drive it of the lot is insanity.

    I can only guess Tesla is doing this because they are having massive trouble with demand :(

    The way they are going with the price cut is really an insult to customers.
  • Peter, I’m not sure how your MX is optioned but mine is also cheaper but only by 4K, which is still a lot for me. I reached out to my delivery specialist and asked if there would be a price adjustment.

    He sent me an email that stated

    Customer who have currently undelivered orders will receive one of two AutoPilot packages:

    1) If they do not have any AP package configured, they will get the new Autopilot base package

    If they have Enhanced AP in their build, they will get

    2) Full Self Driving which includes navigate on AP, Summon, Autopark, and all future updates

    Basically, the pricing won’t change to the vehicle itself, but you will get some awesome tech to make up for it!

    I also logged into my Tesla account and noticed there were a few changes in my build.

    Instead of standard range (270mi) it now reads “Long Range”

    And when I click on “view spec” I see Model X Performance. If I get all that and no price adjustment I’ll be okay, before learning all this I was ready to make changes to my build and maybe even walk away from it.

    At 10k loss I would not take delivery. I rather lose the $2500 deposit and start over.
  • edited March 2019
    I agree, I wonder how many people will choose to take the $2500 lose VS a $22k instant depreciation.
    Its possible Tesla had very little S & X order this quarter, so this only affect a few people.

    But I cant imagine this is making any of the S&X 25,000+ Tesla buyers in the last 3 month very happy to know Tesla just killed the resell value so quickly.

    Only thing is, most people spending $100K + on a car wont have their lives affected by a $5K to $22K loss in resell value. But I'm sure they will remember it. (specially when they go to a supercharger and have to wait in line behind half a dozen model3)
  • edited March 2019
    I see ss is also here spreading his FUD. Short sellers are scared
  • edited March 2019
    Hey Fernando,

    Keep us posted on how your car is actually spec’d out when/if you take delivery. These kinds of changes often cause a lot of confusion and mis-communication for front-end sales. I’d be interested to know how it all shakes out for you as I am in a similar situation, but I am not getting my car until mid-March.
  • edited March 2019
    I'm in the same situation on the X order with the build scheduled for today/tomorrow. I am looking at a $5K loss on the price change. $2500 forfeit to cancel order. My thought is to take possession and turn it back within 24 hours for a full refund, then reorder the same vehicle. $2,500 not too bad but $5K is a lot.
    Question I have; Will it be the same vehicle? Autopilot, seats etc.?
  • edited March 2019
    Not a short seller, to the contrary. I have a flagship Model X, powerwalls, Tesla solar, and my dad got a long range model 3 and getting powerwalls added to his solar next week. And I'm also a shareholder.

    What gripes with Tesla started not long after I place an order for their products. It now cover the full spectrum.
    And from people I talk to at superchargers, I'm not alone. The car is great when its finalized (By that I mean after its service to specification), the complain I hear is not about the car... but about the company.

    Something really going bad at Tesla... and its beyond the factory floor where Elon should spend a little more time.
  • edited March 2019
    I too have an S90D Tesla Solar panels and 4 Tesla Power Walls and I plan on adding an X 100D soon. I have had 0 issues and love all of them.
  • edited March 2019
    I heard a rumor that if you turned your vehicle back in that you would 'banned' from purchasing for a while. Just something to think about if you really do want the vehicle.
  • edited March 2019
    I don’t have a problem with the price cuts. I have a problem with how Tesla is handling pending orders.
    There were two Model X 100D versions to choose from in February, short range 270 miles for $88k and long range 295 miles for $96k. Now there is only one version of 295 miles for $88k, an $8k price cut.

    People who ordered one of the two versions in February with undelivered orders are being treated differently by Tesla.

    - those who ordered the short range version ($88k) is rewarded with a free upgrade to the long range version.

    - Those who ordered the long range version ($96k) are stuck with the higher bill. Tesla will not price adjust it to $88k. The only way to get the new price is to cancel and reorder but risk losing $2500 deposit. I have a long range version scheduled for delivery this Thursday 3/7, but will now cancel and reorder. My sale specialist say he will try to transfer my deposit but he can’t guarantee that it can be done.

    My bigger problem is this; allowing me to transfer my deposit to a new order to get the new price is basically a price adjustment. Then why not allow price adjustment to the current order so I don’t have to wait another 6-8 weeks? In addition, Tesla now have an undelivered model X in inventory that they will have to find a buyer for, someone that love the same configuration that I configured.

    For a company that’s struggling, this is very inefficient and is adding unnecessary costs to the company on many layers. My car was delivered to my city and is stuck undelivered, my DS wasted time setting up my delivery appointment, my SA have to work extra to get my deposit transferred to a new order, the sale department will now have to get a buyer for a inventory car...

    They also have an unsatisfied customer in me who will now have to wait another month or more to get my dream car.
  • edited March 2019
    This is a huge mess, from California right up to Canada.
    I have an order I have not taken delivery yet, and the value of the exact configuration has decreased by $26,000. This isn't just a 4k-6k depreciation, thats 10-15% of the value of the vehicle. This is an economic issue, that mirrors the 2008 housing crisis. Values of an asset (the vehicle) are being artificially depreciated by the manufacturer. Suddenly a car worth 200k is now 170k. How are the banks, the lender, the underwriters for the loans and leases going to react? Customers sign loan for 200k, but only get asset worth 170k, they'll pay a loan on 200k for an asset worth less, this will cause defaulting or at the very least a credit crunch. Banks use the 200k asset as collateral on the loan, and suddenly have to write down 15% value, because the collateral is now worth 30k less. Customers will walk away from loans and leases, and banks will have to write down huge amounts of capital, resulting in artificially decreased debt-asset ratios. This is exactly what happened with US housing crisis (simplified).

    I spoke to someone quite high up in the Canadian Sales hierarchy, and they were just as perplexed and frustrated with these changes being ridiculous, as I was. They honestly advised that any owners waiting on a delivery put it on hold until this shit is figured out. They also said the only "Official" information they've received from Tesla corporate, is that customers can take delivery, return the same day to get full price+deposit back, and then re-order. This way, get the new cheaper price, and keep your deposit. Tesla even knows this is not ideal, but Elon's idiocy seems to have pushed it through.
  • edited March 2019
    Word. Tesla should just do a price adjustment for those who purchased the extended range version of the X, but have not yet taken delivery. If the customer refuses delivery and re-orders, Tesla will just have to sell the refused one at the new lower price, anyway. So, if you are in this situation, ask if you can refuse delivery, then just re-order that one they now have in inventory at the new lower price point.
  • edited March 2019
    Just canceled my order
    Lets see what will happen
  • edited March 2019
    My model X just entered production. I canceled the order and reordered the same exact vehicle with the new pending software for $5000 less. It costs me my $2500 deposit, but I will pocket $3000. The extra $500 is due to sales tax savings on the $5k cheaper car. I feel bad about doing this, but it could easily have been avoided it Tesla has been a bit more liberal in their policy.

    Delivery is still “quoted” as March but we will see. It is possible I could even get the same physical car if nobody is ahead of me for that precise configuration.
  • I ordered X with all the options except for Ludicrous mode. Last Friday, I got a phone call from Tesla sales person and he said he will order a new one for me and transfer the deposit to the new order. Three days later, I got an email from him saying he was informed from the company that I would have to forfeit the $2500 deposit if I want to get the same car at a lower price.

    I cannot understand this. The whole purpose of $2500 deposit was to lock me into this purchase. But it seems like that now I do not have any incentive to stick with Tesla any more. I think I will just have to cancel the order for now and redo my car shopping all over again.
  • edited March 2019
    @gtimbers, @jaewook tesla just finalized my new order today and my SA was able to transfer my initial deposit from the previous order over.
  • edited March 2019
    The used market would have to fall by a similar amount. So this DOES effect anyone who purchased their vehicle in the last year or so. Imagine someone just purchased the car, took delivery last month. They got a XYZ config of the Model whatever, for $100k. Now, a month later, that exact XYZ config of model wtv, is brand new from Tesla for $80k. Their new car purchase is suddenly worth 20k less overnight. That 80k is now the "current" "New car" price, and absolutely that is the bar where used prices would now be set. Normal 'off the lot' depreciation is expected, but when the same car new from Tesla is now 20k cheaper, the bar by which the used vehicle's asset value is determined has also just been lowered.

    Take a hypothetical example of someone who might have bought the car a year ago. It has now accepted the normal, and expected depreciation of about 20% from that first year. The owner paid 100k, a year later should be able to sell it for the deprecated value of about 80k on the used market. (Used car prices are based on many other factors, but the simplified version is just this 'broad' depreciation). But suddenly the exact same car brand new from Tesla, is also $80k, because of the price decrease. Why would anyone buy the used one at it's used value of 80k, when a new one from Tesla (after this price drop announcement), is also 80k. No, logically, the used car value has gone from 100k depreciated 20% for the 1 year, to being worth 80k, THEN depreciated 20% for that first year. anyone buying it used is still buying a 1 year old used car, they would only pay a price of the car's total or New value, minus the depreciation of how old it is.

    This is why everyone who bought a Tesla in the last year is now screwed. In Canada, these price differences are huge! Any model S or X owner is taking a 10k plus hit, and in some cases, almost 30k. The discounted software upgrades is total bull from Tesla, they're already high Margin items, that they still want you to pay extra for, just at a discount. After they just sliced 20k off the value of your vehicle.

    People who have signed Leases or loans, are now paying for a 100k car, thats only worth 80. They're paying interest on a higher asset value than actually exists.

    Tesla needs to make this right. outstanding orders need to be adjusted to the current prices. And they should be offering a retroactive discount, on a sliding scale based on how long ago you purchased the vehicle. I'd propose a fair limit of 1year for those who purchased outright, and anyone on a Lease or loan, should have a more complex time-value-of-money calculation to start decreasing the amounts they pay going forward.
  • edited March 2019
    The clear advice I've got from both HQ in Cali, and HQ in Canada, is to make a new order with new deposit, accept the old order delivery and return it the same day, in order to get the $2500 deposit back. When people high up in Tesla are literally advising customers to do this, it shows something is wrong with how Tesla came to this decision. For those people who have said they have/will cancel and eat the 2500, DONT. You can still get your deposit back, you don't need to eat that 2500, just to get the cheaper new prices. Just follow Tesla return policy, and make a new order.
  • edited March 2019
    roryb.
    This is what I plan to do but it's the order in which to do it. You say, "make a new order with new deposit, accept the old order delivery and return it the same day". Then you say, " follow Tesla return policy, and make a new order."
    Probably not a critical issue but I thought I would check.
    Thanks
  • edited July 12
    So what ended up happening @petermhakim?
  • edited July 15
    Does anyone know if Tesla would adjust price for pending order of model Y recently reduced price?
  • edited August 1
    I had the same question @Itran73. I noticed the price dropped $1300 since I ordered it a few weeks ago and I emailed them asking if they would adjust the price on my order. Waiting for a response.
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