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I got a bad feeling about this thread.
One man's "make a margin grab" is another man's "relief from market pressures so we can turn a profit". It's a pretty natural thing that happens when you have taxes that selectively hit, it always brings up prices across the board by some fraction. Econ 101. *shrug* "Blame" wouldn't be wrong.It really depends on Tesla's sourcing. If Tesla is sourcing their Al and Steel via US sources, then this tariff doesn't really impact them. If they are using international sources, then it could. I really don't know what Tesla will do. Make no mistake about it, this tariff is an opportunity for ALL companies to make a margin grab and blame it on Trump even if they are not actually impacted.
One man's "make a margin grab" is another man's "relief from market pressures so we can turn a profit". It's a pretty natural thing that happens when you have taxes that selectively hit, it always brings up prices across the board by some fraction. Econ 101. *shrug* "Blame" wouldn't be wrong.
As for Al source of Tesla, IIRC nearly all Al used in the US is imported (it's something like 10% produced local to the US, because smelting is so dependent on cheap electricity).
Given that that is the whole point of a tariff......."not actually impacted" with price increases would = "Margin Grab".... IMO
I don't have a clever reply here...I kind of have to agreeGiven that that is the whole point of a tariff.......
I guess we all can now sleep better because the CEO of Century Aluminum says that the worst case would increase the price of your car by $37 (He claimed historically it never got that bad)!
Whether it greatly affects the cost or not, this would be a good and convenient excuse for Tesla to increase the planned Model 3 Standard Range MSRP of $35,000 to something higher when it comes out next year.
Perhaps they can grandfather a certain number of reservation holders to keep everyone happy. In the cse of Model S, those who reserved a Model S 40 by December 31, 2012, were promised the originally advertised $57,400 MSRP, even though the cars themselves were not delivered until March 2013.
Tesla had a reasonable and generally well-regarded explanation for the Model S price increase (by citing the CPI): 2013 Model S Price Increase
The target price of $35,000 was first announced back in 2014, which is $36,400 in today's dollars. By next year, when Model 3 Standard Range is released, it'll be closer to $37,000.
As for Al source of Tesla, IIRC nearly all Al used in the US is imported (it's something like 10% produced local to the US, because smelting is so dependent on cheap electricity).
Tesla can't do that if they're losing money. As the prices of materials go up, it only makes business sense to charge more -- if they can without reducing demand.1) If they don't "Grandfather", AKA sell at the price they agreed upon and promised to every person that has put down a $1K deposit, there'd be copious righteous outrage.
2) . Your wording "convenient excuse" suggests Tesla is looking for one to raise prices, but that runs counter to Musk's ultimate goal, changing the world's vehicle fleet over to EVs.
The target price of $35,000 was first announced back in 2014, which is $36,400 in today's dollars. By next year, when Model 3 Standard Range is released, it'll be closer to $37,000.