Tesla is turning up the heat on the competition and infuriating its customers with price cuts up to $20,500 on popular models!
Tesla famously has the highest profit margins in the industry – but after failing to hit the marks investors had hoped for in the last two quarters and seeing demand indicators plummet in key markets, the brand has begun cutting into that margin in an effort to “goose” demand for its cars. And, over the last 24 hours, the company has cut into those margins in a big, big way.
Wow, Tesla just announced massive price drops in the US across the board. Model Y LR is now $13,000 cheaper before the tax credit and $20,500 cheaper including the tax credit.— Troy Teslike (@TroyTeslike) January 13, 2023
In case you are wondering if this affects my delivery estimate for Q1, yes, yes it does. pic.twitter.com/2OkKQ8XoZh
The popular Tesla Model 3 sedans see massive price cuts of 22.3% on the Standard Range RWD and 26.2% on the Performance models, but it’s the Model Y Long Range AWD – the most popular EV in the world – that offers the biggest discount by percentage. An MYLR AWD purchased today is fully 31.1% cheaper than one purchased last week … and recent Tesla buyers aren’t happy.
“If I wasn’t at work,” wrote one Tesla owner on a Reddit thread, “I’d be sobbing in the fetal position right now.”
Fortune magazine found other owners in a similar mental state. Marianne Simmons, a self-described “Tesla fan girl,” bought her second Tesla in September. This week, she could have bought that same car for more than $13,000 less. “I feel like I got duped,” she says. “I feel like a got taken advantage of as a consumer … right off the bat, I’m out $13,306. It’s such a large reduction that it’s going to affect a lot of people who just bought a vehicle.”
Other outlets are reporting that the bottom has dropped out of used Tesla prices, as well, thanks to the price reduction – which makes sense, since you can now buy a new model for several thousand less than many of the 2020 and 2021 models on the used market.
What does this all mean for the future of Tesla? That’s tough to say – but with no new mainstream products seemingly on the horizon and zero marketing and PR talent on the company’s official payroll, slashing prices and hoping for the best may be the best Tesla can come up with.
SOURCES | IMAGES: REUTERS, FORBES, FORTUNE.
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