I am a share holder. But still the fact is Teslas are overprised. They have to come down no matter what. Look at 400+ inventory today.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
-
Tesla's Supercharger Team was recently laid off. We discuss what this means for the company on today's TMC Podcast streaming live at 1PM PDT. You can watch on X or on YouTube where you can participate in the live chat.
Pricing strategy for 2023?
- Thread starter Mike7564
- Start date
- Status
ord3r
Member
Yes would be appreciated if we could keep those discussions contained to the investors section of the forum.
Makes it hard to discuss purchase timing advice or future rumored upgrades without the conversation going off the rails on the stock/company performance and often getting confrontational.
I don't understand why people here that own Tesla stock don't understand that their stock of TSLA will go down if Tesla doesn't make more money. The luxury car market cannot sustain the current TSLA stock valuation - there just isn't that many rich people; and those rich people can only buy so many Tesla cars. The only way TSLA stock can go up or stay where it's at is if they sell a bunch more cars to average people. There are way more average people EVEN if the margins are lower.
Look at the stock of WALMART and BMW. Which company has a bigger valuation? It's walmart. It's like 5x as much.... but yet people here are worried about having high margins or not going "down market". Tesla has to go down market. If not, those who own TSLA stock will lose money.
This is true. TSLA either needs to lower price/margin to drive volume (aka Walmart) or increase value/features to drive high price per unit (AAPL/etc).
But won’t go into this further as not the OP. Q1 will be interesting for sure, expect it ally since the end of the quarter push will be close to the possible drop in IRS rebate. Not to mention possible moves in hardware and macro factors. My guess is they try to hold prices now and see how the quarter is going. But if demand isn’t keeping up, expect either some price cut (possibly $3750) by the end of q1 or they really shift more features to after purchase software updates (like EAP, etc) to drive down MSRP.
ucmndd
Well-Known Member
Tesla sold every car they could make last year at the prices on offer. They’re like Apple, not Rolex. There is no artificial scarcity to prop up pricing.
When demand drops, pricing will follow.
Money talks. Tesla is making almost 10x profit per vehicle vs GM. That funds new factories w/o debt financing, unlike GM's huge debt burden.
Volume only talks when it flushes out all the other competition. Not very often. Tesla is trying to get there, but it takes money.
Tesla is on the right path. Selling volume at little or no profit is a road to ruin. There's no room for variables, nor error in product.
400 units is a drop in the ocean. Fremont is making 5000 vehicles per week. Austin is making 2-3000 MY per week.
Everything is overpriced. Chevy sells a Tahoe for 75K and a Suburban for 95K. Stupid.
What's good at 50-60K? Argue-able, but not much.
Tesla stock price is about general economic conditions and risk management, not about their current business results or tremendous potential.
Investment managers took profits off the table and hunkered down when interest rates rose so fast. The herd stampeded.
Would be very interesting to see if Tesla changes their system behavior regarding when orders are “held” and “cancelled”. Right now it’s pretty aggressive. Once an order gets cancelled, the customer is now cast “free” to reconsider other brands/etc (assuming it wasn’t because they don’t need/afford a car).
Arguably, Tesla would be smart to either allow people to stay on “hold” a bit longer - creates a bit of “stickiness” since they’ve sunk the $250 plus invested time to pick specs etc. Maybe even let them stay on hold longer as long as they buy a Tesla charger (try to make them a future customer).
Also they naturally have a list of all the orders they’ve cancelled. Potentially reaching out to these folks, maybe offering they can reactivate their order without another order fee, etc. obviously many would have moved on/etc, but quite possible a subset are back in the market and may be turned into active orders.
Arguably, Tesla would be smart to either allow people to stay on “hold” a bit longer - creates a bit of “stickiness” since they’ve sunk the $250 plus invested time to pick specs etc. Maybe even let them stay on hold longer as long as they buy a Tesla charger (try to make them a future customer).
Also they naturally have a list of all the orders they’ve cancelled. Potentially reaching out to these folks, maybe offering they can reactivate their order without another order fee, etc. obviously many would have moved on/etc, but quite possible a subset are back in the market and may be turned into active orders.
exxxviii
Member
Or they could call those customers 3 times/day like Lucid.
On the curious side, they have not had much bench of cars sitting on the lots anyone could buy. Now that they have available inventory building, it might allow Tesla to capture new sales from people who want a car in the moment and do not have the flexibility to wait.
ord3r
Member
Yeah a lot of demand levers they can pull other than price changes. Hopefully this leads to a better customer service experience.
I think the issues are more than $3750 will fix. Remember where pricing was just 12-18 months ago (ie the target consumer and corresponding feature set. And that was in a much healthier macro environment).
Last edited:
^^ that’s a bit extreme, don’t you think?
Given the new price in China we can safely say Tesla has room to reduce US MYLR5 price down to $55-58k level while maintaining a healthy margin.
Given the new price in China we can safely say Tesla has room to reduce US MYLR5 price down to $55-58k level while maintaining a healthy margin.
Actually, now that I think about it, it isn't extreme enough.^^ that’s a bit extreme, don’t you think?
Given the new price in China we can safely say Tesla has room to reduce US MYLR5 price down to $55-58k level while maintaining a healthy margin.
$30k Model Y incoming
boulder.dude
Member
Damn. If only TMC had an area where people could bet real money on future price changes…
Dunromin
Member
Has demand really fallen? In Q4 in the US demand/deliveries were understandably low with people waiting for clarity on the IRS to clarify rebates. In Canada we had a flood of inventory in Q4 as US customers cancelled or postponed, which has now returned to normal. Model Y is the 4th best selling vehicle, of any kind, in the world. China is unique, and real competition in capability and volume is still far behind. Price reductions, perhaps, but not so dramatic as many people hope.
exxxviii
Member
There is a new economic antinomy surfacing throughout these posts. On one hand, we have objective fact that sales have risen to records through Q4. And industry analysts are forecasting further sales increases through 2023. While on the other hand, demand is falling. But on the other hand, only one US EV automaker and two globally have manufacturing capacity sufficient to meet 2023 sales increases. It truly is a puzzle.
- Status
Similar threads
