Did prices get cut? Just saw 15k drop.

[Colsla]

In a sales pool that is arguably shrinking as we head into a recessionary period, Elon seems to be doing a strategic move by trying to capture a larger portion of it through aggressive pricing. He can afford a larger margin haircut than KIA, Hyundai, GM etc... whom either sell at a loss or barely earn a profit on their EVs today. This positions the OEMs in a tight spot, where if forced to lower prices, they will have less cash to reinvest into their EV program... if they don't lower prices, the value proposition of their cars becomes challenged with the risk of market share loss...
So while TSLA margins are compressed, it may be generating sufficient cash that can be used towards improving their cars. Post recession, say 2024/2025, Tsla will hopefully come out the other end ahead relative to the incumbent OEMs

a lot of people are worried about margins, but i think it won't be that bad. Their margins were fine before the big price hike .. and they have more economies of scale now than before. Margins will suffer while Berlin and Austin ramp up.. but I think Tesla will surprise people with not so bad margins.
Tesla is in a great position to grab a big portion of an ever growing EV market ..!!

 

[ZooSean]

yes, for me, I also would not pay that much. In fact, even when it was at its cheapest price years ago, I didn't want to buy it and then discovered I got it for free anyway (as a consultant). However, I do use it all the time on my long trips in the older Tesla and I feel less stressed. So, I see opinions are all over the map. Some like it, some don't, some people pay lots of money for it and some won't. I guess it is like any other product.

The problem for me is used to it while driving on freeway. Two feature I like most is ordinary summon and changing lane. If buy a new Tesla and sell the old one, I lost these. The value of FSD in the 2nd hand market worth maximum 2K while I need pay 20K for it. This is ridicules. Sorry Elon.

 

[rypalmer]

a lot of people are worried about margins, but i think it won't be that bad. Their margins were fine before the big price hike

They will be absolutely fine on margins. Their order backlog was deep, and they spent the bulk of 2022 unwinding older orders with lower prices reflected IMO. What I paid in September is within $3k of the new "discounted" price, because my order date was November 2021 and it took that long for Tesla to get around to fulfilling my order.

I'd say though generally the next 2 years is going to be very difficult for car makers, dealerships, etc, since many have been backed into a corner with underwater car loans, and generally high debt servicing.