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$22,000 price drop

$22,000 price drop

Anyone that just took delivery of a P100DL feel unlucky that Tesla just dropped the price by $22k ?

I took delivery 3 month ago, and my build is now 22K cheaper... That just doesn't seem right.

Specially that I still have to call a third party body shop to do panel alignment (Tesla center will not do it)
Tesla wont charge me to align the panels, but for a $162K car you would expect they would at least subcontract the work and not leave you do it.

Anyways, not thrilled at this situation. Stinks of desperation....

Rumi11 | February 28, 2019

I feel you. That really sucks and makes it hard to know when is a good time, and price, to buy.

sschaem | March 1, 2019

I think those other buyers , specially the new Tesla owners that paid for their S or X in the last 48 hours are going to feel it even more.

nipper2 | March 1, 2019

When is a good time to try and stream line to reduce the price? It has to happen some time.

nipper2 | March 1, 2019

PhillyGal | March 1, 2019
@AWDTesla - Why should I? We are all very well versed in the product life cycle of technology. We pay more to get it when it's new. Do you know how much I had to work to buy the school required laptop for college? I bought virtually the same laptop for 1/5 the price later.
If you spend $50,000 (or 20 or 100k) on a car without researching the company first that's your fault. Price drops have been planned and publicized since the Secret Master Plan. They've been working today yesterday for a decade!!

grimmathon | March 1, 2019

Disagree [nipper2] high end vehicles don’t get cheaper, they get more expensive. You wouln’t pay less for a Mercedes AMG, Porsche 911 or Lamborghini. The 2019’s are not cheaper than the 2018’s or 2017’s... the cost, like inflation goes up. This is unacceptable to early adopters that have spent months or years promoting the brand. This is a kick in the (you decide where) to people who were told, “there is a no haggling on price, everyone pays the same price.” The Model S and Model X where not meant to be for the masses. They were premium vehicles with a premium price tag. Tesla should credit the difference to all early adopters, so that those funds could be used for future services (when warranties run out) or toward new vehicles. We aren’t talking pennies here, these are significant cost differences.

jjgunn | March 1, 2019

The best thing is how much these cars hold their value & we don't have to change oil or take smog tests. Zero emmissions baby.

Oh BTW ...the cars IMPROVE with firmware updates & later this year FREE HARDWARE upgrades. Any Porsche, BMW, Lamborghinis do that??

1 more thing....I'll bet you have the 72 Amp charger (not 48 Amp) another good selling point.

jimglas | March 1, 2019

ss is spreading the same FUD on multple threads. Must be a panicking short seller

TDUB | March 1, 2019

I am not rich. When I got my MX in Sep 2018, people asked why TESLA is so expensive, why you are willing to spend that much for a car? My answer was: I am supporting a consumption of new concept. I even didn't try to figure out why it's so expensive. If the car was over-valued, I don't feel bad. Rather I feel I was supporting something new and worthy.

Dear past buyers, you should be proud of what you did. Without your pioneering and leading consumption, there won't be so many TESLA cars, esp. M3, today on the street. There will be more tomorrow. I often feel very good to see more and more TESLAs around.

burdogg | March 1, 2019

@grimmathon - you haven't been around long enough then - this is NOT the first time these cars have dropped in price. Early adopters are very well aware of that - so to go claiming as one and that they should get money back is naive and funny.

Price drops have happened. Better battery for same cost has happened. Reduction in unlocking battery range has reduced...I could go on and on and I have only been around for 3+ years....there are many around for 5+ years that could back and agree with the story of Tesla - their cars drop in price - as battery tech drops.

You are comparing an AGE OLD ICE car industry to a new Battery Tech company. Battery prices are high, which has made electric vehicles to really take hold...but with the continued improvements on battery tech and thus declining costs....EV's are only going to get cheaper in the short run until a stabilization occurs - kind of like SOLAR PANELS. Once battery prices start to stabilize and not drop - then the car price will become more stable, and then you might start in years to come after that see the price increase like you example of the ICE industry. I don't see how that is so hard to understand....

EV is not in the same realm as ICE - you can't compare the technologies and say the one right now should be increasing in price to the other - the other has been around for so long - there is no room to drop price from one year to the next...but EV"s technology is so new that price will continue to come DOWN in the short term - hence early adopters are almost always going to pay more - for ANY early adopter item...

laiphan97 | March 1, 2019

What about people who have placed an order but haven't taken delivery yet? My DS told me that I'm locked in to the old price when it was configured a month ago, but I will get the $3000 FSD upgrade for free. My only option is to cancel the order and restart from scratch and lose my $2500 deposit. I feel this is not the right way to do business. I feel that they should price adjust for everyone who hasn't taken delivery.

fernandofromsf | March 1, 2019

@laiphan97 others have mentioned that their original
Deposit was transferred to a new order but that they also had to put down a new $2500 deposit, making it a total of $5000. I’m considering doing that

Munka | March 2, 2019

In Australia it is an AU$75000 drop since our tax is progressive and Tesla are throwing Ludicrous upgrades in for free in AU and EU.

I'd be quite happy with a 22k drop :P

laiphan97 | March 2, 2019

@fern, thank you for the info. I told my DS this and he’s currently looking into it for me.

bp | March 2, 2019

This is the first time there has been a significant price decrease for S or X.

I've been tracking S/X pricing since we purchased our first 2012 S P85. As they've introduced new features, Tesla has tended to keep the pricing roughly the same, and even increased the pricing when AP2 was introduced.

I'm estimating we lost about $25K in current value between our 2017 S 100D and 2018 X 100D - about 2/3 of what it would cost to buy a new $35K Model 3!

Tesla has evidently realized the negative impact on their current customers, by offering 1/2 price EAP/FSD upgrades and for those vehicles already with EAP & FSD, they'll invite them to join the Early Access Program and get software updates earlier. And based on how Tesla has treated their customers up until now, wouldn't be surprised to see them to take additional steps to recognize the loyalty of their current customers.

On the other hand...

This price decrease is bad news for Tesla's competitors bringing out new long range EVs. It will make it even harder for them to match Tesla's pricing, and likely will force them to lose (more) money on every EV they sell.

The shift to only online sales is also bad news for the dealerships and their lobbies - because Tesla will bypass local sales completely, essentially making it impossible for the dealerships to find any way to block Tesla vehicle sales. Plus it demonstrates how little value the dealerships are providing in the purchase process...

Are we disappointed in the price drop - yes, though we're not completely surprised. This happens to all new technology (how much does it cost to buy a 4K TV today???). Though it is frustrating to see $25K disappear overnight...

Teslapalooza | March 2, 2019

@bp, you are on the money in what you have said

bp | March 2, 2019

A win-win option for recognizing customer loyalty - expand the 1/2 price discount to all software activatable features, EAP, FSD, software limited battery packs and software limited charging (our S 100D evidently has a 72A charger limited to 48A).

And if Tesla limited this discount through March 31 - this would bring in a burst of new revenue for this quarter, or if they wanted to have this counted in Q2 - make the discount from April 1 through June 30.

That still doesn't address frustration by customers who've already purchased FSD - and for that, they could allow those customers to transfer their FUSC (Free Unlimited Supercharging) to a new Tesla vehicle when they traded in their current FSD vehicle. This wouldn't have a negative impact on near-term profitability, and actually provides an incentive for current customers to buy a Tesla replacement in the future.

Customers should let Tesla know how they feel about the overnight 15% loss in value, and as the dust settles, would not be surprised to see Tesla do more than what they've offered so far to protect the loyalty of their customers.

PXChanel | March 2, 2019

It’s not all bad, we had more choices on interior features and premium upgrades, now there are none, looks like 1 package fits all. Also, we got free supercharging for life, but anyone who buys now will have to pay.

jjgunn | March 3, 2019

Bought my MX June 2018.

Just ran through configuring a new one with all the same options....

$17,000 less. Now. Let me explain a fee things....

Options you can no longer get with your car WHICH I CURRENTLY HAVE!

Free unlimited SuperCharging
Carbon Fiber interior accent
72 Amp Charger (48 Amp now)

Referral program awards
(2) Free HPWC via Referral program
(1) Free mini Tesla for my Goddaughter (inducing priceless smile)
(1) set of 4 - 22" Onyx rims - (retail $6,000)

I drive 30k-35k miles per year. At .32 a kW I'm spending about $20 to charge my car per workday. That's $100 a week or $5,200 a year to charge. When some people gave back their FUSC for $5k, I would've never given it back. For me, it's a gigantic savings to have FUSC.

All of a sudden, I didn't "lose" $17,000 - funny how it turns out when you consider all factors.

jimglas | March 3, 2019

@JJ: And the use of the car over that time. Again, priceless.

fernandofromsf | March 3, 2019

@jjgunn $20/day to charge? 100/wk? That’s what I currently pay for fuel in my jeep SRT! Seems like there are no savings there

jjgunn | March 3, 2019

Correct - except I don't have to pay for it thanks to FUSC. That's why the .32 cents a kW at the SuperCharger is such a joke in CA. At a minimum the price should be reduced during off-peak hours. Probably closer to $4k a year with vacations & holidays, etc.

Obviously at home during off-peak electricity is less, why wouldn't it be for Tesla?

Did you know PG&E has 33% renewable energy. Hydro-electric. Yup. Bunch of Hydro-electric stations in the hills at the waterfalls.

https://www.energy.ca.gov/maps/powerplants/hydroelectric_facilities.html

burdogg | March 3, 2019

jjgunn - it is called Demand charge. At home you don't get hit with a demand charge. For energy companies to supply a surge of energy all at once requires a demand charge that hits companies with a huge bill.

Example that I have - our baseball coach told me that the minute they fire up the lights - they get hit for the month with a $10,000 charge. So if they fire the lights on say March 30 - $10,000. Then turn them on again in April - $10,000 more. That is the demand charge part. Then they pay for the electricity usage as well.

There was an article that discussed this in dealing with another company discussing charging infrastructure and I can't remember what they were saying, but basically it wasn't feasible due to the demand charges...

burdogg | March 3, 2019

ah, found it:
https://evannex.com/blogs/news/tesla-powerpacks-to-be-used-at-electrify-...

They will use Tesla power packs to mitigate their cost due to that stupid demand charge

burdogg | March 3, 2019

"Why does an EV charging station need on-site energy storage? Because of demand charges, which are extra fees that utilities charge commercial customers when they draw large amounts of power. Demand charges are based on the highest power level a customer draws from the utility during a set period of time, and they can be extremely high. So costly are demand charges that, according to Tom Moloughney (writing in InsideEVs), they make it nearly impossible for DC fast charging stations to break even, much less make a profit. Moloughney owns a 24 kW DC fast charging station, and finds that demand charges push his cost of energy from 12 cents per kWh to well over $1.00 per kWh."

burdogg | March 3, 2019

And from another article:
"If you pass the demand charge onto the customer in a high-demand charge market" it can cost anywhere from $70 to $110 to charge a vehicle, Electrify America's chief operating officer Brendan Jones told Reuters. "If you did that, obviously nobody would buy an electric vehicle."
https://www.cnbc.com/2019/02/04/reuters-america-vws-electrify-america-bu...

jjgunn | March 3, 2019

Thanks for those links. I usually charge my car between 11 PM & 7 AM - demand is pretty low during this time.

Also why I posted about PG&E using Hydro-electric. They are using the waterfalls to generate that electricity & they're making bank on it. They also have wind & some solar too. Because they're such a large company PG&E does not get tax breaks even though they use 33% renewable energy.

This goes way higher & most likely all the way to Big Oil & the Saudi's.

Just think....all brought on in this thread by a "$22k price drop"

grimmathon | March 7, 2019

Please stop comparing cars to laptops and 4k TVs. They are not the same.

grimmathon | March 7, 2019

As for free supercharging. Great for road trips. But if you don't live near a supercharger, it doesn't make up for the 15k-20K.

dmm1240 | March 9, 2019

“Please stop comparing cars to laptops and 4K TVs. They are not the same.”

They weren’t pre Tesla; they are now.

jjgunn | March 9, 2019

I can't wait to get HBO, Netflix & Amazon Prime on my 17" screen

bonhari03 | March 9, 2019

Please stop comparing Tesla’s to other cars. My MX has over 127 CPUs working in tandem to provide motion and comfort. It has more in common with my desktop computer than my motorcycle. Both are, by the way, diminishing investments.