Model 3

Bought a model 3 less than three weeks ago, Tesla dropped the price by $8000 in AU

This is good news for motorists considering an EV in Australia and I am all for it. However, it short-changes the customers who recently bought a Tesla. My EV depreciated when I drove it out of the showroom (less than three weeks ago) as expected but I did not expect it to depreciate another 10% overnight. I have spoken to Tesla and they have no sympathy for customers like myself. I am happy with the product but I have previously posted about the very poor sales process and customer service (or in fact lack of it). This is just the icing on their bitter cake.

Who else is affected by this decision and what if anything do you plan to do?
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Comments

  • Not only that M3OZ but the refresh dates your purchase.
    However, someone on Carsales.com.au is offering a low mileage 2019 build/ 2020 registered, M3P white on white for 108k.
    One option you have is to sell privately to someone who prefers the classic M3 (without chrome delete) and order another one with 2021 build date.
  • You can also check Tesla inventory of M3. Last I checked they only had red ones available ex stock in Australia. Whatever colour yours is may be just what a buyer is looking for. They sell very quickly and at zero discount second hand I have noticed .
  • Conversely if they raise the price, does the customer owe Tesla more money?
  • No buyer in their right mind would buy a second hand albeit close two new car for a price that is more than the new car. I am not after an upgrade to 2021 model. I am simply pointing out the fact that Tesla's decision whilst positive in general, has disadvantaged some of their customers and they every refuse to entertain the idea of doing something about it to keep the affected customers happy.
  • > @M3phan said:
    > Conversely if they raise the price, does the customer owe Tesla more money?

    I understand the sarcasm here but legally in Australia a business cannot increase the price of a product they have sold (even if not delivered yet). There are consumer protections in place that you cannot take, then reverse the role of buyer and seller and see if the fairness test applies. The law deliberately gives more protection to customers and sets obligations on sellers that are not meant to be reciprocal.

    I understand that Tesla is not legally required to do anything. They have had a price drop (great!). However, most companies would consider the impact of their moves on their customers and would offer ways to dampen the effect.
  • @M3OZ,
    This conversation has happened every time there was a price change over the years.
    I was merely trying to help you with how I see it this week,there are possibilities.
    And people are not always buying in their right mind as you call it. Some are impatient. Some want a particular spec, others a colour.
    The money is not important to some, particularly those who have a windfall from TSLA shares available.
    Why dont you tell us your spec, let us see if anyone here wants it?
  • Since you asked I have a base Model 3, Pearl White, Standard Range Plus, less than 3 weeks old and <1000km which I bought at $AUD 80,000. The new one is on order available between 4-8 weeks and retails at $AUD 72,000. I just wonder how many people would want my car now and won't wait for a brand new one with $8,000 discount attached.
  • $8000 is not what I read anywhere. I wonder what you got for 80,000?
    I just checked and the driveaway for NSW is near enough to 72,000 as you said. You possibly also paid Luxury Car Tax in the 80,000, what else?
    And have you seen the similar thread on Model S page? They are not so helpful :)
    Apples to Apples?
  • From TheDriven:

    "The sticker price for the Tesla Model 3 in Australia dropped by up to $A7,000 on Friday, as the Californian car maker also upgraded numerous specifications, delivered a reported increase in driving range, and most notably, added the Model Y’s highly efficient heat pump.

    The base Standard Range Plus (SR+) Model 3 is now priced at $A66,900 (before on-road costs), a drop of $A7,000 from its previous $73,900 sticker price that Tesla had imposed earlier in 2020 after a fall in the value of the Australian dollar.

    The reversal – following a rebound in the value of the Australian dollar – means the Model 3 is now almost back to its original August, 2019, price of $A66,000, but with much better specs.

    The Long Range (LR) variant pricing has also dropped $A6,000 to $A81,900 and the Performance (P) variants has dropped $A5,000 to $A90,900, all before on-road costs and options."
  • @M3OZ , Tesla’s mission is to accelerate the proliferation of clean transportation. They continuously improve production to the point that they can reduce prices where typical makes would merely increase margin.

    It’s a good thing. You still get what you agreed to buy for what you agreed to pay, while sone who couldn’t afford what you paid a few weeks ago can now.

    Tesla is atypical in the car market. Profit is not the prime directive.
  • > @M3OZ said:> Who else is affected by this decision and what if anything do you plan to do?”

    Everybody. Just a fact of life with Teslas. Good for EV adoption, bad for the adopters.

    Are AU cars going to be shipped from China? China costs of production will be lower than US or EU plants and China market itself much more competitive so more downward pressure on Tesla prices.
  • Possibly shipped from China Cheaper
  • Model3StandardRangePlusSummaryModel3StandardPlusRear-WheelDrive$66,900DesignPearlWhitePaintIncluded18’’AeroWheelsIncludedAllBlackPartialPremiumInteriorIncludedFeaturesAutopilotIncludedDeliveryFee$1,375Orderfee$150VehicleSubtotal(Includes$6,220GST)$68,425OnRoadFeesLocalStampDuty$2,740LocalRegistrationCosts$253LocalCTP$314LocalPlateFee$21OnRoadFeesSubtotal$3,328DriveAwayPrice$71,753
  • Exchange rate AUD/US about .71
  • @M3OZ, yes sarcasm to make a point about lowering prices and expectation of receiving some form of refund from Tesla. Tesla can’t reasonably be expected to offer anyone a refund, what are the parameters? If you bought it a week before the price drop? How about a month before? Two months? Someone at the edge of any decision has the option to feel burned. Or, they can choose to not, and enjoy the car.
  • Tesla strategy now that the major car mfgs are seriously in the race is to try and keep ahead with spartan, lower priced, longer range EV's. VWID4 reset everyone's prices as Ford and Tesla both lowered their prices to meet VW's price.

    https://forums.tesla.com/discussion/146665/vw-ceo-our-evs-as-good-as-tesla-at-half-the-price-by-2020
  • Meanwhile, on Tesla order page, the Model 3 SR+ is still $37,995 just like it has been.
  • edited October 17
    Low priced, long range EVs has been Tesla's goal for more that a decade, along with an holistic ecosystem of charging and clean power.

    "
    Build sports car
    Use that money to build an affordable car
    Use that money to build an even more affordable car
    While doing above, also provide zero emission electric power generation options
    "
  • edited October 17
    > @M-A-B-MCMLXXX said:

    > Build sports car'

    Lose a lot of money but gain experience and publicity.

    > Use that money to build an affordable car

    Lose a lot more money to gain experience and PR.

    > Use that money to build an even more affordable car

    Lose a LOT of money and build economies of scale.

    Typical for startups. No shame in it. No need to get defensive about it.

    To this topic, Tesla is helping to drive price of EV's down, a price we pay for buying EV's.

    Ford's option to buy with fixed buy back price for Mach E is a good one for EV adoption.
  • @ M3OZ : Tesla should put a "boxed warning" on their cars for would-be buyers: "WARNING: you are not purchasing a typical car. The sale price of subsequent models (unlike ANY other car in the world) will DECREASE over time. If you can't handle that, then move along."

    We should all know this, of course: battery technology will lead to reductions in cost over time. More efficient assembly processes will lead to similar cost reductions. Tesla will pass that savings on to future customers to increase sales/market share.

    This is the painful realization for MANY first time Tesla purchasers. I paid 47,200 USD for my (unicorn!) 2018 silver mid-range M3 on 1/19/2019. I, too, felt burned when I soon after saw the price drop by thousands of dollars over the next few months. NOW, I see the tasty new SR+ M3 feature-set with MORE range than I have, and I am JEALOUS. It's still stings to see I could order a SR+ for 38,990. My net price was 43,450 after fed tax credit. So, for 4,460, I got silver (yay!), 21 months of driving ~9,000 miles, premium sound, and a piano black console (!). Am I STILL bitter? Absolutely. But, despite my gripes about my car (and I have many), I love the motor and I hate burning petrol. It's a keeper.
  • “ Lose a LOT of money and build economies of scale.

    Typical for startups. No shame in it. No need to get defensive about it.

    To this topic, Tesla is helping to drive price of EV's down, a price we pay for buying EV's.”

    Exactly. It worked. And Tesla will continue to push the price down in order to increase EV proliferation. As someone who portrays himself as an environmentalist, you should thank them for this approach of reinvestment for continuous improvement with efficiencies passed on to the price rather than pocketed with higher margins. Instead you present it as a negative.
  • > @M-A-B-MCMLXXX said: And Tesla will continue to push the price down in order to increase EV proliferation."

    Only to maximize profits at best vol/price point or in response to competition.

    No accident that both Ford and Tesla lowered prices when VW1D4 prices were announced.
  • > @M3phan said:
    > @M3OZ, yes sarcasm to make a point about lowering prices and expectation of receiving some form of refund from Tesla. Tesla can’t reasonably be expected to offer anyone a refund, what are the parameters? If you bought it a week before the price drop? How about a month before? Two months? Someone at the edge of any decision has the option to feel burned. Or, they can choose to not, and enjoy the car.

    How about communicating the plans ahead of time, doing a run-out sale on the soon to become obsolete models or promotions that won't physically cost them such as free or discounted FSD to help people make an informed decision and choose to wait to pick up the soon to be superceded stock from the showrooms? How about a more customer-centric mindset?
  • Look up "Osborne Effect"
  • Incidentally, had you taken delivery by Battery Day, Sep 22?
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