Price cuts?

[rugbym8t]

I am a long time multiple tesla owner and this is par for the course with Tesla. They did this back in the early days of Model 3 as well, overnight wiping out thousands of dollars of value. Back then Tesla was much smaller, so the people who remember that rough lesson were fewer. This time it's a much larger base of consumers who will remember and experience the lost. Long term it definitely will hurt their brand equity. The past couple years have made people think of Tesla as a premium brand but in reality, true to his word, Elon just wants to sell as many cars as humanly possible. He has no desire to create a luxury premium brand. He would rather replace Toyota or Honda vs Porsche. Tesla's lack of dealers allow pure price fixing and manipulation. They shift the price around based on the elasticity of demand at any given time and inventory. It's not about creating long term stable value for their owners. It's about maximizing profit and scale. The current prices are basically back to 2021 pre pandemic prices. So it's not the end of the world. You have to treat Tesla's like a volatile stock and time your entry and exit much more so than any other car brand I know. After my Model 3 experience, I have done well riding the waves with my subsequent 2 model Xs and my soon Model Y.

I do not believe Porsche will do anything like this with Taycan or any of their Models. They manage their depreciation curves much more consciously. It's the main reason I am interested in a Taycan now. I will never again buy a premium priced Tesla.

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[Tomato]

Not saying that Tesla is a premium brand even if their cars can cost over $100k+ as an owner of a Model S with FSD(Fake Self Driving) but I don't think any premium brands will ever publicly offer a price reduction like what Tesla just did. It will always be behind the scene through dealer kickbacks, subvented programs, etc. That's how the dealer model helps the manufacturers/dealers by distorting the value of their products from average consumers.

 

[Fish Fingers]

Correct me if I'm wrong....i know you will

I assume Tesla price their cars differently to other manufacturers, as they seem to be more short term focused.

If supply chain is tight and demand is strong they will increase the price repeatedly in a short space of time (like last year).

Established manufacturers look at things longer term and have more established / stable (generally!!) supply chains and take a longer term view. Happy to turn down potential short term gain, for longer term stability.

In short, Tesla pricing seems far more dynamic than established manufacturers?

 

[simcity]

I am a long time multiple tesla owner and this is par for the course with Tesla. They did this back in the early days of Model 3 as well, overnight wiping out thousands of dollars of value.

They had track before that, doing the same to the “P” models of the S & X. Literally slashing tens of thousands from the price overnight. Mind boggling.

Tesla is really not a company that cares in the slightest about its long term customer satisfaction. I say that as a long term owner myself. There are other things they do well but they do plenty others *really* badly too.

 

[simcity]

In short, Tesla pricing seems far more dynamic than established manufacturers?

Tesla EVERYTHING is more ‘dynamic’ - they don’t care what they break, they just move fast. Good or bad. Often overnight. It’s the core of their corporate DNA. There are no sacred cows with Tesla.

 

[Raphie]

Let’s be clear, a Tesla looks like an electrified 6 year old Toyota with a duckface, that got overhauled by an IKEA fired designer. The car is not premium AT ALL (they call vinyl upholstery “vegan leather”) and was already way out of price position compared to competition. Now with better offerings from competitors, they have to.
the other thing is that they miss the boat on tax incentives. And since it’s a mainstream brand predominately driven by employer based lease cars they have to do something.
All Tesla’s in NL were driven by employees having tax incentives (0%) opposed to (25%) ICE cars.
Now these incentives are gone, they all go back to their Hyundais and Volkswagens, the cheapskates they are.
So, sales is down, pricebands are a miss for tax incentives so they have to create a new double whammy for potential buyers.
Porsche customers are way more discerned and as connoisseurs happy to pay a premium for something special.

 

[tigerbalm]

 

[simcity]

Let’s be clear, a Tesla looks like an electrified 6 year old Toyota with a duckface, that got overhauled by an IKEA fired designer. The car is not premium AT ALL (they call vinyl upholstery “vegan leather”) and was already way out of price position compared to competition. Now with better offerings from competitors, they have to.
the other thing is that they miss the boat on tax incentives. And since it’s a mainstream brand predominately driven by employer based lease cars they have to do something.
All Tesla’s in NL were driven by employees having tax incentives (0%) opposed to (25%) ICE cars.
Now these incentives are gone, they all go back to their Hyundais and Volkswagens, the cheapskates they are.
So, sales is down, pricebands are a miss for tax incentives so they have to create a new double whammy for potential buyers.
Porsche customers are way more discerned and as connoisseurs happy to pay a premium for something special.

Say what you think Raphie. Don’t hold back!

 

[Raphie]

The good thing is all of these Tesla’s now running out of contract and appearing on the 2nd hand market and being repurposed by lease brokers. Netherlands is flooded with Tesla atm and with the tax incentives nearly gone it’s going to be very tough for Tesla. Sales have collapsed and their YoY sales expectations must be awfull.

 

[tomtom901]

The good thing is all of these Tesla’s now running out of contract and appearing on the 2nd hand market and being repurposed by lease brokers. Netherlands is flooded with Tesla atm.

Not yet, probably the 2nd hand market for Model 3's will be flooded in 2024 or end of this year. Smart sellers already ditched their Tesla's (like me, haha). That being said, the Model 3 is a very capable EV, especially in it's price range. I'm not talking about looks, or interior etc, just at battery tech, optimization and software.

But that initial push of 40k units in Q4 of 2019 they got in the Netherlands will probably be a black swan for them, unless the government further incentives EV's again.

And, gotta give Tesla credit, if you bought your Tesla in the last 14 days, they are crediting the difference back to you, as well as actively changing orders. Not sure we could have expected that from Porsche without a fight.

 

[W1NGE]

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

Pigs might fly!

Absolutely no chance. They don't need to.

 

[Throb]

My dealer told me he expects prices to rise significantly for the next model year Taycan.

 

[tchavei]

I'm already slightly annoyed to see "too many" Taycans around where I live. Kills the exclusivity. Imagine having a price cut.

 

[simcity]

My dealer told me he expects prices to rise significantly for the next model year Taycan.

They’ve gone up twice since I initially placed my order in Nov ‘21. Once for the M22 to MY23 change and I noticed when in the configurator recently a Turbo has gone up again by £2,400

 

[Dee]

I'm just glad Porsche pays my depreciation, 04/20 car here.
Thank you Porsche.

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