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Kill or severely scripple your competitors nascent r&d on ev vehicles by leveraging both your huge supply chain AND incredible company valuation.
Very monopolistic and ruthless but great for us consumers...
Originally Posted by AMIRZA786
Well now I know why the Hyundai dealership contacted me. Looks like Tesla just cut prices again!
Since the beginning of 2023, Tesla (for the most part) has lowered prices on some of its most popular vehicles including the base-model standard range Model 3. It now starts at $42,990 which, according to Bloomberg, is $4,930 cheaper than the average new vehicle sold in the United States. That makes the rear-wheel drive Model 3 the cheapest vehicle Tesla has ever produced relative to the typical vehicle sold in the U.S. If you add in the $7,500 vehicle tax credit, a Model 3 is nearly $12,500 cheaper than the average price of a new car.
The larger and more expensive Model Y is also following this trend somewhat. It may not be cheaper than the average new vehicle at $54,990, but it’s a lot closer to the mean than it was before the $13,000 price cut it received. Well, now it’s $12,500 after Tesla raised prices by $500 after it sold out first quarter build slots in the U.S.
Don’t get it confused. This doesn’t mean the Model 3 is literally cheaper than it ever has been. Hell, Tesla said in 2019 you could get one for $35,000 (whether that is true or not is anyone’s guess). But, all vehicles prices have gotten more expensive since the Model 3 hit dealerships.
These price cuts were done in an effort to take advantage of new stipulations surrounding the $7,500 EV tax credit, and they have made other automakers like Ford and Lucid follow suit in the cuts.
While prices are going down in the EV market, internal-combustion vehicles are going in the opposite direction. Bloomberg reports that since the start of the pandemic, the average price of a new vehicle has risen over $10,000 to $47,920 in January. The finger is pointed at the chip shortage, the increased price of raw materials and the decision by automakers to keep inventories low and prices high.
It’s a similar cheapness story when it comes to leasing a Model 3 – even when you compare it to slightly down-market vehicles like the Toyota Camry. Bloomberg says that a Standard Range Model 3 and a Toyota Camry LE can be leased for 36 months, with 10,000 annual miles and $5,544 due at signing for $349 and $353 per month, respectively. Think about what you can buy with that $4 in savings!
All that being said, we may not be in the good times forever. Bloomberg reports that Tesla is retooling its Model 3 production lines to get ready for a facelifted version of the five-year-old vehicle. Tesla apparently has a bit of a history of jacking up prices after a facelift. When Tesla refreshed the Model X and Model S in January of 2021 (right after those vehicles’ prices fell to relative lows), it raised prices by 15 percent and 12 percent, respectively. After the initial boost, prices continued to rise for the following year and a half.
So, if you want to take advantage of Tesla’s lower prices, you may want to get moving sooner rather than later. Who knows what tomorrow, or Elon, holds.
On EVs, I wouldn't go by HP too much. It's the torque rating that matters more since it's both instantaneous and flat throughout.
Case in point is the model 3 performance which is supposed to have 450hp, weighs 4k lbs, yet still runs low 11s in the quarter mile.
Definitely HP is not the most important part of owning an EV, as you really don't need that much like you need with ICE. Our 2020 Ioniq EV only has 138 HP, yet it is better than any 4 cylinder, is smoother than any V6 or V8 I've driven, and it's biggest hold back is it's limited battery capacity. If it had double the range, I would actually buy it out. With only a 38 kWh battery, it just doesn't have the range we desire.
The Ioniq 6 is going to be better than any ICE on the market in drivability and efficiency. If the Hyundai dealership is willing to go MSRP and no tricks at signing, I may actually consider this car
Ah does that mean that discounts on traditional ICE cars mean softening demand as well?
Tesla was marking up 10-20k pre pandemic, and now that things have turned back to normal, "reduced" pricing back to normal triggering this price war.
Would love to see what companies offer 10k for employees for EVs. Please share!
All top tech companies and many Fortune 500 companies have it as a benefit for employees. Its like benefits companies offer for discounted cell phone plans etc.
All top tech companies and many Fortune 500 companies have it as a benefit for employees. Its like benefits companies offer for discounted cell phone plans etc.
I work for a tech company, and I have many friends that do as well (Google, Meta, Apple etc) and none of them have that benefit ($10K EV benefit). Can you maybe clue me in so I can get it as well? My Company does pay for my cell phone usage, but I'm their Senior Network Architect, and it's really not that much ($46 a month)
I work for a tech company, and I have many friends that do as well (Google, Meta, Apple etc) and none of them have that benefits ($10K EV benefit). Can you maybe clue me in so I can get it as well?
How much is your benefit?
GM and Ford offer $12k for their employees I believe.
My friend has $5k benefit from one of the big investment banks. My other friend has $3k benefit from tech company. It varies.
I’m not referring cell phone for business purposes - im talking discounts on personal devices.
GM and Ford offer $12k for their employees I believe.
My friend has $5k benefit from one of the big investment banks. My other friend has $3k benefit from tech company. It varies.
My benefits are all in stock options and stock grants as well as bonuses based on company and personal performance, but I don't get any benefits for owning an EV, and I currently own two. I mean some companies have level 2 chargers and offer free charging, but that's like $40 a month per car in electricity costs
I work for a tech company, and I have many friends that do as well (Google, Meta, Apple etc) and none of them have that benefit ($10K EV benefit). Can you maybe clue me in so I can get it as well? My Company does pay for my cell phone usage, but I'm their Senior Network Architect, and it's really not that much ($46 a month)
On another front, Lucid not doing to well in regards to the EV wars...
Lucid sees disappointing 2023 EV production as orders drop amid weakening demand
(Reuters) - Lucid Group Inc on Wednesday forecast 2023 production well short of analysts' expectations and reported a major drop in orders during the fourth quarter amid weakening demand, sending the electric carmaker's shares down 11% after hours.
The Newark, California-based company, which was already battling supply chain and logistics issues and struggling to deliver cars, was hit by aggressive price cuts sparked by Tesla Inc that lured consumers away from its luxury cars amid rising interest rates and soaring inflation.
"There's a lot more competition than a year ago ... a lot more EVs becoming available at lower price points than the Lucid Air vehicle," said Garrett Nelson, an analyst at CFRA Research. "There's probably a lot of frustration from customers having to wait for so long to get the vehicles they ordered."
Lucid said it expects to produce 10,000 to 14,000 luxury electric vehicles this year. Analysts on average expected the company to make 21,815 cars, according to Visible Alpha.
The company, backed by Saudi Arabia's sovereign wealth fund, Public Investment Fund, delivered 4,369 cars last year, far below the 7,180 units it produced.
"We've gotten past the major bottlenecks limiting manufacturing, but this had some impact on the demand we generated early on, and this has been exacerbated by the challenging macroeconomic environment," Lucid CEO Peter Rawlinson said on a call with analysts, after the company reported fourth-quarter revenue that missed expectations.
Price cuts by Tesla and Ford Motor Co have made it harder for rivals such as Rivian Automotive Inc and Lucid to grab share in an industry competing for shrinking consumer wallets.
Lucid said it had more than 28,000 orders as of Feb. 21, down 6,000 reservations from the third quarter, after it delivered about 1,900 vehicles and saw cancellations. That was despite Lucid's offering a discount of $7,500 on Feb. 9 for purchases of certain variants of the Air sedan before March 31.
Finance chief Sherry House said Lucid would not publish quarterly reservation numbers going ahead.
This year, the company will focus on improving production and deliveries, and will take a "vigorous and comprehensive" look at driving down operating and manufacturing costs.
House said Lucid would incur capital expenditures of between $1.5 billion and $1.75 billion in 2023. That's a 40% jump from 2022, but well below analysts' expectations of $2.24 billion.
Lucid reported a cash balance of $1.74 billion in the fourth quarter, after raising $1.52 billion in December. At the end of the third quarter, it had $1.26 billion in cash reserves.
Revenue rose to $257.7 million in the quarter ended Dec. 31 from $26.4 million a year earlier. Analysts on average had expected sales of $302.6 million, according to IBES data from Refinitiv.
The company's net loss narrowed to $472.6 million, or 28 cents per share, from a loss of $1.05 billion, or 64 cents per share, a year earlier.
Shares of Lucid fell as much 10.6% in extended trading. The stock fell 82% last year after Lucid halved its production forecast due to supply chain issues.
