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Toyota is not discounting any of their products. The demand for a Toyota is higher than a Tesla. Look at the days on the lots..Toyota is the shortest. Followed by Lexus.
The Tesla 3 is now cheaper to buy and the wait is shorter than a Lexus ES hybrid
Last edited by Toys4RJill; Apr 7, 2023 at 10:05 AM.
It's also flexibility provided by their direct sales model. If Tesla reduces the price of a car by $5000, the end result of that is the customer purchases the car for $5000 less in 100% of cases. That should drive additional demand and increase sales.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
Same for the opposite situation too, Look at the Corvette. Dealers have been making a killing marking them up because demand has been so high. GM didn't get that money. Tesla, on the other hand, gets all the benefits when demand is high and supply is low.
This is a good point. But what are the consequences of reducing the price? For example, the used car market for Teslas now has used Teslas sitting on the lot longer than regular gas cars.
Let me rephrase what you're saying a bit. Lowering the price on new cars makes used cars a less attractive purchase for the consumer. So they are more likely to buy new. Now from Tesla's perspective--a company whose business it is to sell new cars--this sounds like a total win.
They don't care what happens to the used market. That's not where they make their money.
Same for the opposite situation too, Look at the Corvette. Dealers have been making a killing marking them up because demand has been so high. GM didn't get that money. Tesla, on the other hand, gets all the benefits when demand is high and supply is low.
Imagine if GM had a direct sales model to the customer, they could still mark it up, but not as high and benefit. At this point they can't really mark it up because they know dealerships are already doing markups, which they have no control over. IMHO, the consumer get's zero benefits buying through a dealership, unless you consider a bad cup of coffee a benefit
Toyota's strategy is so successful they've just written a manifesto on how they are going to completely transform their strategy. And why talk about Toyota at all in this thread they are irrelevant in the EV space.
I would be surprised if they didn’t care. Tesla does sell used Tesla cars. Lots of money to be made. Providing financing on a used Tesla is very lucrative. I am not sure if they do directly or if they use a third party financer
Last edited by Toys4RJill; Apr 7, 2023 at 10:31 AM.
Tesla's goal is to transition all transport to electric and all energy to sustainable. They are going to accomplish that goal using any means necessary. If anyone disagrees with their strategy then great, support the company you think is doing a better job.
No need to beat the dead horse into oblivion with the same points over and over and over. Rinse repeat.
I would be surprised if they didn’t care. Tesla does sell used Tesla cars. Lots of money to be made. Providing financing on a used Tesla is very lucrative. I am not sure if they do directly or if they use a third party financer
Yes they resell their lease returns. And the residuals on those will go down accordingly--residual is a fixed percentage of MSRP set by the manufacturer--so in the long term no real difference. Also, only 7% of Teslas are leased (vs. 80% for the rest of the EV market), so this is an incredibly small portion of their business.
But let's look at the bolded part. A given customer is only going to purchase one Tesla in a particular transaction, either new or used. Which financing is MORE lucrative, the brand new one with the higher price, or the 3-5 year old one that costs half as much?
Did you know that the base LR was priced at $69k intially, and eventually increased in priced up to $109k and now sits at $84k? Isn't direct factory pricing wonderful?!
As an existing owner ane recent buy, doesn't concern me at all! Actually wants to make me get another!
So when will you get a Tesla? Seems youre very interested in Tesla's lately 😂
Originally Posted by LexsCTJill
Do we agree the demand for Tesla EVs is slowing? This is simply a rebate. Good for a new buyer yes. Bad for existing buyers, resale and stock price.
