Late last week, Tesla announced price cuts to its entire model lineup, ranging from 15% to 20% - effective immediately. This is the power of direct-sale to customers: you the company can dictate the price at anytime. Don’t forget that Tesla actually raised pricing multiple times in 2022. This latest price cut is not so much a discount but rather a revert to the before times.
Still, if you just bought a Tesla vehicle in December 2022, you must be rightfully pissed off. Had you waited just that bit longer, you could have saved tens of thousands of dollars, plus be eligible (on certain variants of the Model 3 and Model Y) for the federal EV tax credit. $20,000 is a considerable amount of money, even for those who can otherwise afford a Tesla car before the price cut. This is like buying a TV for a certain price, only to find the same unit on sale the following week. On a larger scale.
Even those who purchased a Tesla car earlier in 2022 now have cars that are suddenly worth 15% less overnight. That would include dealerships who bought Tesla models on trade in: they are now upside-down on practically their entire Tesla fleet. I sure hope you’ve diversified! If your entire business is trading on used Tesla vehicles, you are effectively done.
It may be extremely salty for owners of recently-bought Tesla cars right now. I think if you’re in that situation, you have to suck it up and keep owning and driving the cars. That’s the only way to make back that money, so to speak: to get the most utility out of the original purchase price. Unlike the TV, you can’t simply return the Tesla or ask for a price match.
If you’re looking to buy a Tesla model, now is obviously a great time! The next day after the price-cut news, a friend of mine immediately sorted out financing and ordered a Model Y long range. He’s been pining to buy one for the longest time. The latest price reduction, plus the tax credit eligibility, was finally incentive enough for him to make the move. Now comes the hard part: the waiting game. As someone who have ordered a few cars, I can relate to that anxiety and agony.
Hold on, little one.