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Tesla just lowered the price of Model S by $15,300

Tesla just lowered the price of Model S by $15,300

I don’t know what to say.

NRGrin | February 28, 2019

I received the email regarding the newly released $35K Model 3 Standard Range. The same email had a link for new pricing on Model S/X. I decided to check just out of curiousity. All 100D. With long range (335), deep blue metallic paint and cream interior the new price is $86K.

My invoice on 11/24/18 was $101,300 for the exact same car. I figured they might lower prices to account for the federal tax credit getting cut. But I sure didn’t expect to be undercut by that much.

I’m a little taken aback. And in full disclosure, I chastised someone in another thread in December when Tesla dropped the price about $4200 to make up for the tax credit. I said “an agreement is an agreement, of course prices will come down over time”. But $15K in 3 months?

Please someone on this forum save me from myself!

pgkevet | March 1, 2019

Mine is a month older than yours.
And when they start rolling out with HW3 included then then our values will plummet further.
Like any computer (just on wheels) they become obsolete and overpriced as soon as you buy them 'cos the next thing is already in development and made cheaper.
Indeed manufacturers hold back on huge leaps forward so you'll buy them a step ata time.

NRGrin | March 1, 2019

I’m seeing in other threads that those whose orders are in process are not getting price adjustments. But what they are seeing is that their regular model is now being made a performance model for the same price! Holy crap! And they are getting autopilot for free!

Munka | March 1, 2019

In Australia a p100d with ludicrous fully specced was au$275k now ~$195k. That is one hell of an expensive Sun roof! Surely it is a typo and the ludicrous upgrade isn't free for Australians?

I paid 199 for an ex demo a couple of months back. And I'm a bit miffed although not sure I'd do anything differently.

Silver2K | March 1, 2019

This explains all the price drops I've seen in parts. It's cheaper to manufacturer the vehicle now and they are passing the savings on to the consumer.

shank15217 | March 1, 2019

I suggest people consider CPO as much as possible.

Bill_75D | March 1, 2019

I think this also means that everyone's resale or trade-in prices just took an equivalent drop, as if it wasn't bad enough already.

EVRider | March 1, 2019

I’m in the same situation as the OP. I took delivery of my S100D in mid-December. I’ve been pretty tolerant of price adjustments in the past, but this is a bit much. In addition, my wife took delivery of a Model 3 MR in December, even though her BMW i3 lease wasn’t up until March, because the SR she wanted wasn’t supposed to be available until mid-year. We both would have been better off waiting, even with the tax credits.

reed_lewis | March 1, 2019

@NRGrin - Welcome to the other side of the price drop equation. Only those who completely drink the Tesla Kool-Aid will completely accept the price drops without any consternation.

reed_lewis | March 1, 2019

We just purchased a Model 3 LR AWD for my wife, and picked it up two weeks ago. With the new pricing the exact car is now not available because there is no more EAP, but I could have gotten AP and FSD for the same price I just paid for EAP only.

ktslab | March 1, 2019

dang, my car's used value will drop too.

jordanrichard | March 1, 2019

I am going to sue Tesla!!!!! 5 years ago I paid $90K for my Model S85 with only 265 miles of range. Now for basically the same money they give people AP, 8 cameras, emergency braking, better range, better fit n finish, summons, sentry mode and for God sakes, Pole Position.... Who's with me.......?

jordanrichard | March 1, 2019

Oh and I forgot air suspension and AWD. Now I am definitely suing...........

ktslab | March 1, 2019

lol

NRGrin | March 1, 2019

@jordan: the sarcasm is biting, and hilarious! I needed a good laugh.

I still love my car, that’s not gonna change. And I still love what Tesla is trying to do. But can you see how your example of a 5 year old car costing the same with all those improvements over time is very different from a $16K price drop in 95 days? and those in process of a new build are getting the performance model and AP and FSD for free.

My situation would be helped a little if the gave me AP and FSD for free.

If I needed to sell my car, I’m at least $30K upside down. I know about depreciation right off the lot (so to speak), but not like this.

avesraggiana | March 1, 2019

Yay for me!!! I’m even more upside down in my Model S75D than I was yesterday! By about another $15,000.

avesraggiana | March 1, 2019

@NRGrin. Same. Before too long I’ll have to pay someone to buy my car.

Seriously though, if I could change ONE thing about our original S75D purchase from two years ago, I would have sprung for the largest battery available, the 100kW.

kdcolgan | March 1, 2019

Just took delivery on 2/27 on 100D, got everything except for the full self driving option which it appears as though they still want another 5k for - just to be equivalent to cars they are now providing 15k less.... at least I enjoyed it for about 20 hours...

Geox750 | March 1, 2019

The question to me is why did they do this, particularly when there is still no competition.

Tesla is so different, conventional car companies are much more protective of their brand that they would not openly cut their prices like this because of the potential damage it would do in customer's eyes. Conventional luxury car manufacturers actually do the same thing with a late cycle model, just much more quietly. You can negotiate $10K-$15K of sticker of a BMW 7 Series. Tesla's online pricing does not allow them to do that.

Demand must be non-existent out there. But cutting prices like this may not help that a much long term. The S is clearly in the need of a refresh, because it is so late cycle--not because it is actually behind any competitors. A refresh is the only thing that will create demand again.

Silver2K | March 1, 2019

What's even worse, those fuck heads at Samsung keep coming out with new phones that depreciate the shit out of my note 8! And they keep having sales or dropping the price on them!

SO | March 1, 2019

Maybe TSLA will make it up for you. It has for me.

But don’t look at today.

Hammonddave | March 1, 2019

Its OK... Its only money.

Silver2K | March 1, 2019

It's easy for you to say, my phone keeps dropping in value!

Geox750 | March 1, 2019

Hope you did not pay $108K for your phone !

TeslaTap.com | March 1, 2019

I wonder how people are comparing prices. While it appears to have a lower price, some features don't exist anymore (EAP) and some new features (AP) are not close to the features of EAP -but much closer to FSD. So unless you compare two cars without EAP/AP/FSD or compare cars with FSD, it seems difficult to price compare.

For those that bought EAP - it looks like a really good deal, as it now requires FSD (+$8K) to get similar features - although some new features later this year are for FSD only.

thapaj | March 1, 2019

if it's any consolation , I bought my 75 D modelS with EAP 27 days ago. Missed out on the full federal credit by a month and missed out on 15 K price drop with advanced features by less than a month . Talk about bad timing.

Darthamerica | March 1, 2019

It was a known fact that Tesla Model S and Model X prices were intended to offset things like R&D, Gigafactory, Supercharging ect. With more volume and cost optimization Tesla is able to lower the pricing. This is a necessary step especially with more competition on the horizon. If you get into a Model S and then a S550, you can see that the car isn’t a 150k+ vehicle except for the cost of the battery technology. Also with this new pricing there is room for additonal features like bigger batteries, more premium interiors and maybe even some performance options like liquid cooling... the sky is the limit.

To me the new pricing is much more reasonable. This might just get me to add a Model X to the family...

avesraggiana | March 1, 2019

@thapaj. I feel for you. Your timing has been as impeccable as mine.

On a more positive note, our family took purchase of a Tesla Model X100D less than a year after our S75D. I’ve noticed the price changes on the Model X line have not been nearly as ruinous as they have been on the S line.

Okay, I’m being drama queen. How about, “not nearly as precipitous?”

jordanrichard | March 1, 2019

Geox750, by increasing demand for the Model 3 and the S and X, means more sales lost to the OEMs. This will force them to make the type of vehicles that their customers are leaving their brand for.

Tesla is so, so far ahead of the OEMs. Now they have 3 different models ranging in price from $35K to about $150,000. The most that other have is 1 model, in just 1 price segment. BMW has absolutely nothing that can touch a Tesla. Audi, they have a bunch of PR statements, but that's it. The E-Tron still not available even in Europe. Still no set delivery date for Benz's EQ400 in Europe. Volvo Polestar, not until 2020 and that will be for China first. Porsche Tacan won't be available until next year. the common thread to all of the offerings is that they are in the niche market price point.
Down on earth, aka for the masses, no one has anything coming.

Now, obviously my point of view/focus is U.S. centric, so with that said. People should really listen to what the other OEMs are saying about their products or rather what they are NOT saying. The focus and where these models will go first, are China and then Europe. The U.S. is third in line. Even during the Volvo Polestar announcement they said that they would open bespoke Polestar stores, but the cars will be ordered on line. That frame of thinking is for Europe where Volvo and other OEMs are allowed to freely sell directly to the consumer. In the U.S. as we all know is another story.

rsrivast | March 1, 2019

@NRGrin - did you add the AP and delivery? I just priced at $93,750 with black interior and standard wheels.

thranx | March 1, 2019

@Silver2K: I don't have that problem with my phone because people keep telling me the value of my conversation also drops each year.

Geox750 | March 1, 2019

JR - I appreciate the sentiment and understand Tesla's mission to force the OEMs to EVs, but it does not do us Tesla customers any good if Tesla cannot survive long (or even short term).

There is a growing lack of demand that may not be solvable by price cuts--they need to refresh models or may be even more fundamentally that there is not enough of the the masses ready to ditch ICE and move too EVs.

If Tesla cannot solve this problem fast enough, they could run out of cash and business. Then these hits we owners are taking on price cuts will look like child's play.

SO | March 1, 2019

@Geox750 - how many times throughout Tesla’s history has the “lack of demand” been an issue?

How many times have people trumpeted that “oh my!!!! Demand is falling!!!!!!!!”

And it turns out to be just fine. Don’t those people get tired of being wrong?

Geox750 | March 1, 2019

Yes, but this year with the repeated large price cuts, layoffs, store closings, now earnings warnings, etc. we are in new territory ? The incredible Model 3 pre-order demand looks like it has run it course. Those who were looking to buy have bought, so now we need to convert new buyers.

We owners are all immersed into EVs, but here in the midwest, it still runs into a lot of objections among people. Lack of charging infrastructure in condo and apts is a huge barrier for lots of my friends who I think would otherwise be Tesla customers. The potential buyer pool may be pretty tapped for now until there is a further advance such as FSD, more range, faster charging, etc.

Hope Tesla can make it through this patch,.

inconel | March 1, 2019

I am not convinced the store closings and price cuts are because of demand falling. I think in the push to get the 35k Model 3 a reality Tesla realized there were areas they can cut back (referral programs, FUSC, physical stores) and that help to lower the sale prices of all Tesla, not just the 3 SR.

As for Q1 loss is it not because of the delay in shipping cars to Europe and China? Now that the pipeline has been filled Tesla should be in a better situation in Q2.

jordanrichard | March 1, 2019

Here is another theory I have seen about the store closings. If they don’t have stores, but more specifically no longer seek to open stores, they don’t need to fight the states that they have been fighting with to get stores in.........

Basically, they just side stepped the dealers..............

dougk71 | March 1, 2019

Selling direct from the Internet and ending around the dealers cuts the dealer take of say 10%. In those States that enforce only dealers can sell cars expect them to ban Internet Sales of Cars. The dealers could be the new mafia with politicians afraid to allow anyone to compete with them. Elsewhere like Europe competition with dealers is allowed. In the land of the free; dealers are free to ask for monopoly status in States like Texas and New Jersey.

NRGrin | March 1, 2019

@rsrivast: I compared my MS long range with the blue metallic paint, cream interior, no AP or FSD. The new price is $86,000 before delivery. Mine was $101,300 before delivery. $102,500 with delivery. With the sales tax burden on the $15,300 cost difference, that’s $16,256 less for the exact same car. I’m comparing apples to apples.

NRGrin | March 1, 2019

Don’t get me wrong guys, I haven’t turned into a Tesla hater. And I know the more cars they sell the better for everyone. And you expect prices to come down as efficiencies are gained. But nobody expects 16% drop in cost overnight, along with a 16% drop in value for a 3 month old car.

I’ll get over it, it’s just shocking to see. It would be nice if they would provide some of these recent purchasers with the same add-ons current builds are getting. Just my opinion.

Still a fan. Still love my car.

SO | March 1, 2019

@Geox750 - ugh.... good grief.

1. They don’t find the retail stores are worth it.

2. Many more people have a Tesla and can show others. When I purchased my S a couple years back, I definitely wanted to see one in person and had to travel out of Michigan to do so. Now, I have had prospective buyers ask me and I have given test drives. They didn’t need to go to the retail stores.

3. This quarter is a slight disappointment. But they are doing major changes. They will be profitable again soon.

joe | March 1, 2019

I was most surprised by the fact that the standard-range S didn't drop in price much at all, while the long-range dropped a *ton*... only $4k more than the standard-range. How much more did it _used_ to be? $15k or more? I hope this bodes well for the pricetag on my dream of, someday, replacing my 70kWh battery with a 100kWh.

NRGrin | March 1, 2019

Joe: the long range I bought dropped $15,300. No AP or FSD. Blue paint upgrade, cream interior upgrade.

NRGrin | March 1, 2019

Joe: was $101,300 and now $86,000

SO | March 1, 2019

Mine was 105 for a 90D.

NRGrin | March 1, 2019

I have tremendous respect for the long time owners and posters here who have given me a lot of great advice.

As I’m reading through the multiple threads on this topic, I’m seeing a recurring theme: I think many of you have experienced something like this multiple times. And maybe it doesn’t seem like a big deal to y’all. But I don’t think any of us newbies expected this big of a drop so fast. It’s one thing if it’s over a year, or years. But almost overnight is hard to handle.

It doesn’t mean we are now unsatisfied. I think we came in here to the forum hoping for a little understanding from our mentors.

SO | March 1, 2019

Even if everyone said “I’m really sorry this happened to you” and left it at just that, would you feel any better?

Doubtful.

It is what it is. In time the pain will decrease. Mine sure does every time I drive mine. To those who say they no longer trust Tesla but will run to another car company/dealer to buy a car that is always more than the previous year because they can’t be more efficient or don’t want to pass on the savings to the consumer, you have to realize the stupidity in your logic....right?

So... had you bought a different vehicle, you’d get burned by this purchase and every subsequent purchase. Rather than with Tesla where it was this purchase and not as much with the next.

Mathew98 | March 1, 2019

Ahem. I paid more for the now extinct S60 than the currently available S100. None of you get to bitch about price drops in the last 6 years!!!

SO | March 1, 2019

BTW, my price was without EAP too.

SO | March 1, 2019

@Mathew98 - thank you for doing this so that we could get a better vehicle for less!

avesraggiana | March 1, 2019

@Mathew98. Ooohhhh...that smackdown hurt! But thank you for getting things in perspective for the rest of us.

For as long as we’re not intending to sell our Model Ss on the internet tonight, we still get to enjoy the same, singular Tesla driving experience.

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