Price cuts?

DocOne

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So what do you guys Think, after the large price cuts on the Tesla, Will Porsche also slash the prices on Taycans?
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Jabbar

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don’t think so. I’m collecting by Taycan GTS next week and hope not!! Ordered a new 911 GTS today - been quoted 2 years waiting time and zero discount offered!
 

fullmetalbaal

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At least in the US, people are missing the broader picture.
We've had supply issues, which has led ALL manufacturers to raise prices. The difference is that Tesla sells direct, and raises the prices directly. Porsche/Mercedes/BMW but also Ford/GM did raise prices somewhat, but primarily it was dealer markups that increased.
Those same dealer markups have been disappearing. And so it's not surprising that direct sales companies like Tesla will now show visible price cuts.
So - I don't think we will see discounts, but
1) markups are in fact becoming less common and also smaller
2) I bet the next model year will see a smaller increase than it otherwise would have
 

RAHRCR

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At least in the US, people are missing the broader picture.
We've had supply issues, which has led ALL manufacturers to raise prices. The difference is that Tesla sells direct, and raises the prices directly. Porsche/Mercedes/BMW but also Ford/GM did raise prices somewhat, but primarily it was dealer markups that increased.
Those same dealer markups have been disappearing. And so it's not surprising that direct sales companies like Tesla will now show visible price cuts.
So - I don't think we will see discounts, but
1) markups are in fact becoming less common and also smaller
2) I bet the next model year will see a smaller increase than it otherwise would have
Tesla isn’t lowering prices because their supply chain problems went away or because their costs of doing business went down. They are doing it to hurt their competitors and to discourage new entrants into the EV space. Once this tactic has had the desired effect (or is proven to be ineffective), their strategy of increasing price will resume.
 


fullmetalbaal

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Tesla isn’t lowering prices because their supply chain problems went away or because their costs of doing business went down. They are doing it to hurt their competitors and to discourage new entrants into the EV space. Once this tactic has had the desired effect (or is proven to be ineffective), their strategy of increasing price will resume.
Lowering prices to better compete is actually "market competition working as intended".

My point is that everybody is reducing prices. It's just that it's not visible for other OEMs because there, it's about "market adjustments" melting away, vs list price changes.
 

RAHRCR

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Lowering prices to better compete is actually "market competition working as intended".

My point is that everybody is reducing prices. It's just that it's not visible for other OEMs because there, it's about "market adjustments" melting away, vs list price changes.
Elon, is that you? 😄. Jk……
 


TaycanHero

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Absolutely not, but the used Porsche (and other premium marques) market is about to get hammered is my prediction.

Normal depreciation curves will return... Which means large drops in valuations since this time, the excessive used prices have a lot more to fall before reverting to the mean.
 

Archimedes

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Did you cross shop your Taycan with a Model 3/Y?

No, Porsche won’t cut sticker prices in response to the actions of a company that it doesn’t even compete directly against. This is a bigger issue for companies like Ford with the Mach E, though I think the competitive impact is being overblown. This is a desperate move, not a shrew competitive move. Tesla has a serious demand problem and knows that Q1 23 is going to be awful unless they can quickly drive sales, but all they’re likely to do is move sales up from people that were holding off to buy later in the year.

Porsche’s ability to maintain pricing at the dealer level will be dependent upon broader market conditions, not Tesla pricing.
 

Fall7St8nd

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So what do you guys Think, after the large price cuts on the Tesla, Will Porsche also slash the prices on Taycans?
I don't see any incentive for Porsche to decrease their prices at this point... especially considering existing demand (as mentioned).

Tesla MY, as an example, is in a different market segment and business context with price reductions for different reasons (US tax incentives; competitive China market) than those looking to purchase a Taycan.
 

yankeedoodle

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Actually, in the (unlikely) even that Porsche does cut the price on the Taycan, what happens to those customers who 'locked-in their config' and are set to receive their delivery after the prices cuts? Would they pay the new MSRP at that time of delivery, or still pay the MSRP when they 'locked in their config'?
 

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Nope. Porsche isn't going to devalue every Taycan on the road with a price-cut. Porsche literally engineers how well these cars hold their value in the market. There's a long wait to get a Taycan allocation.

As of today, new Teslas are now cheaper than used ones and it's not like the used ones were selling. This is a desperate and terrible move by Elon/Tesla for their existing owners. Most recent buyers with financing are now effectively upside down with their cars thanks to this nonsense.

Earlier today, a Chinese analyst weighed in on the cuts criticizing Tesla's cheap and spartan interiors not being in line with the taste of Chinese buyers. Basically, no price cut will make these cars appealing. Elon is so knee jerk that he'll probably slash prices again in two weeks.

Tesla has a supply and demand problem. There's now a huge supply and no demand. It's not interest rates. It's not something in the overall market. There's nothing clever about this. Elon Musk has demonstrated that he really had no idea who was buying his cars -- spoiler alert: it was the political left and the climate concerned, the market and the people that Elon has totally crapped on in social media. The world now knows he's a garbage person and as a result of Elon being the face of the brand, Tesla is f@#ed. Elon has always been the kind of guy that stiffs janitors and property owners.

Let's get real. Tesla is a car company that has not announced a new car in four years. They're now valued and judged by that. They've de-contented the cars that they're selling. They even removed the parking sensors without an alternative solution ready. The designs are stale and there are superior, and better built, EVs coming fast and furious from the established automakers ...and Tesla has nothing on deck.

Cybertruck? ROFLMAO. You can park it in your garage next to the new Tesla Roadster. That car was announced SIX years ago -- Tesla took deposits as high as $50k and produced nothing. Don't get me started on the FSD fraud or the empty promises of the 4680 cells. It's all empty promises from a charlatan.
 

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I personally think its a very bad move by Tesla.

It will undermine new customers confidence to purchase in the future, as they fear there will be another price drop. So they will defer purchase.

At the same time annoying existing Tesla owners who have just seen the value of their current car drop by a large margin.

If you also consider Tesla share price, p/e ratio, lack of new models, increased competition etc, I think they are back to the problems of a few years ago, when they survived by the skin of their pants.

It doesn't help that Elon is away trying to fix Twitter (why?).

Hopefully Porsche stick to the Rolex model. Limit supply and one way price increases.
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