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Ummm you brought up the comparison to a civic? You alright there?
I was naming the cars you listed. And the base model 3 is cheaper (or as cheap) to own and funner than all of those you named when you factor no gas and almost no maintenance. And yeah, I'm good 👍
There are over 120 new Teslas available near me right now on their site. I check pretty often, and I've never seen it that high. And I'm in South Carolina. Lots of Model Y/Ss to choose from, and a ton of Model X/3s. Thought it might be just my location, but I checked other zip is nearby states, and it's the same thing. I think the tax credits pushed a bunch of sales forward, and now there is going to be a lag. Might be something else up in the economy that isn't fully transparent yet too. Either way, something is up.
I recognized some Mach-Es that were for sale back at the beginning of the year when the tax credit started. Sent some pics to a coworker back then, and it's the same cars. Same VINs. Doesn't seem like that would be good for the batteries.
There are over 120 new Teslas available near me right now on their site. I check pretty often, and I've never seen it that high. And I'm in South Carolina. Lots of Model Y/Ss to choose from, and a ton of Model X/3s. Thought it might be just my location, but I checked other zip is nearby states, and it's the same thing. I think the tax credits pushed a bunch of sales forward, and now there is going to be a lag. Might be something else up in the economy that isn't fully transparent yet too. Either way, something is up.
I think you made a good point. A lot of customers at the end of last year thought the tax credit will end and rushed to buy so it may have pulled forward a lot of sales. I think Tesla is starting to see a slow down in demand, plus more competitors resulting in cutting their prices 5 times over a very short period of time. So far no one can explain why they had to cut prices even with record deliveries last qtr.
I think you made a good point. A lot of customers at the end of last year thought the tax credit will end and rushed to buy so it may have pulled forward a lot of sales. I think Tesla is starting to see a slow down in demand, plus more competitors resulting in cutting their prices 5 times over a very short period of time. So far no one can explain why they had to cut prices even with record deliveries last qtr.
I guess continually repeating the same talking point trumps published data. It still doesn't explain Tesla's YoY 40 percent plus sales growth pre taxes credits. But hey man, if it makes you feel better
I guess continually repeating the same talking point trumps published data. It still doesn't explain Tesla's YoY 40 percent plus sales growth pre taxes credits. But hey man, if it makes you feel better
Show me the published data explaining why they had to have multiple price cuts and I'll shut up. Record deliveries should negate the need to cut prices no? Or you disagree? And if you disagree, why?
Show me the published data explaining why they had to have multiple price cuts and I'll shut up. Record deliveries should negate the need to cut prices no? Or you disagree? And if you disagree, why?
Actually it's you that needs to prove that Tesla sales were softing, you're the one making the claim. I'm done discussing this
So what you are saying is the price cuts worked and the reason that Tesla had their best qtr ever was due to the price cut? If EVs are in such great demand, there is no reason for Tesla to cut prices at all.
tesla doesn't operate in a vacuum and there's multiple reasons to drop prices, not just spurring demand. but obviously tesla's manufacturing capacity is growing rapidly, so they can keep up with more demand than before. i think the price cut is to make sure they sell more vehicles to gain marketshare and make their competitors less competitive!
but i have to believe between inflation and interest rates that the auto market as a whole is struggling right now. since tesla has big margins they want to keep the bandwagon going. obviously price cuts helps.
Last edited by bitkahuna; Apr 12, 2023 at 09:48 AM.
tesla doesn't operate in a vacuum and there's multiple reasons to drop prices, not just spurring demand. but obviously tesla's manufacturing capacity is growing rapidly, so they can keep up with more demand than before. i think the price cut is to make sure they sell more vehicles to gain marketshare and make their competitors less competitive!
but i have to believe between inflation and interest rates that the auto market as a whole is struggling right now. since tesla has big margins they want to keep the bandwagon going. obviously price cuts helps.
Thanks Bit, that's a very good observation. They (Tesla) have definitely lost some market share to other EV's on the market, and price cuts helps slow that down or even reverse that. And yes, high interest rates can cause a slow down in high value purchases
The usual suspects on here point to price cuts as evidence that EVs generally and Tesla specifically have a demand problem, but fail to acknowledge that there’s a significant difference between using price as a lever to defend against weak or declining demand and using price as a lever to proactively support and grow demand.
Tesla is almost uniquely able to take advantage of the latter as its operating margins are so robust.
Tesla plays the long game. With dominant margins, Tesla can leverage price to maximize incremental sales to new/conquest customers. Those new customers plus the existing and now expanding customer base are loyal to the brand, and research shows they tend to repeat buy thus securing future demand for Tesla. Rinse and repeat.
The overall EV market is growing, so Tesla is additionally leveraging its margin to ensure not just YOY growth but also the maintenance of its market share. No one else in a position to do this, and Tesla is moving now to ensure no one else is able to emulate the strategy in future.
What Tesla has is a demand opportunity, not a demand problem.
Well said....I think I the conquest owners will be key to their growth.
Look at me...I was a die hard Toyco/Lexus guys, migrated to bmw, and then after my first model 3, bought another 5 Tesla's now...
It's really about convincing those on the fence about EVs, that with the lower costs, it's not a big gamble to migrate as before.
Originally Posted by swajames
The usual suspects on here point to price cuts as evidence that EVs generally and Tesla specifically have a demand problem, but fail to acknowledge that there’s a significant difference between using price as a lever to defend against weak or declining demand and using price as a lever to proactively support and grow demand.
Tesla is almost uniquely able to take advantage of the latter as its operating margins are so robust.
Tesla plays the long game. With dominant margins, Tesla can leverage price to maximize incremental sales to new/conquest customers. Those new customers plus the existing and now expanding customer base are loyal to the brand, and research shows they tend to repeat buy thus securing future demand for Tesla. Rinse and repeat.
The overall EV market is growing, so Tesla is additionally leveraging its margin to ensure not just YOY growth but also the maintenance of its market share. No one else in a position to do this, and Tesla is moving now to ensure no one else is able to emulate the strategy in future.
What Tesla has is a demand opportunity, not a demand problem.
Another factor is that the Austin factory just opened up, and as a non union shop, they need to keep that plant cranking out as much as possible to recooperate the large investment to fund future developments (cybertruck, etc)...
Originally Posted by bitkahuna
tesla doesn't operate in a vacuum and there's multiple reasons to drop prices, not just spurring demand. but obviously tesla's manufacturing capacity is growing rapidly, so they can keep up with more demand than before. i think the price cut is to make sure they sell more vehicles to gain marketshare and make their competitors less competitive!
but i have to believe between inflation and interest rates that the auto market as a whole is struggling right now. since tesla has big margins they want to keep the bandwagon going. obviously price cuts helps.
tesla doesn't operate in a vacuum and there's multiple reasons to drop prices, not just spurring demand. but obviously tesla's manufacturing capacity is growing rapidly, so they can keep up with more demand than before. i think the price cut is to make sure they sell more vehicles to gain marketshare and make their competitors less competitive!
but i have to believe between inflation and interest rates that the auto market as a whole is struggling right now. since tesla has big margins they want to keep the bandwagon going. obviously price cuts helps.
I agree, Tesla no longer operates in a vacuum since they no longer own like 95% of the global market. I believe they are down to around 50% or so globally. Overall they are still doing really well, but they are feeling the heat and they have to compete like every other car manufacturer.
I'm not sure if the auto market as a whole is struggling. The latest car sales is showing double digit growth (admittedly from a low base) by almost every manufacturer except for Toyota. Incentives are not yet abundant and I still cant get a Sienna even at MSRP.
