Tesla Owners Protest Over Drastic Price Cuts

Tesla’s price cuts have been so significant in some regions that it devaluated some recently purchased vehicles by over 40% and it pushed some owners to literally organize protests. Those changes includes a new Model S battery pack and some up to $12,000 massive price drops in the US. Tesla has been justifying those price reductions by saying that the shift to online sales is going to result in cost savings.

Overseas, the price reductions are even more significant. In some markets, the higher-end versions of Model S and Model X have seen overnight price reductions of over $30,000. One of those markets is Taiwan, where the price of a Model S P100D was cut almost in half by Tesla’s latest price changes, resulting in about $100,000 in savings.
 

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I understand the frustration, but you have to aware of the risks when buying something from such a volatile company like Tesla, the risk of missing out on something that comes tomorrow. After all it’s a car. They depreciate as soon as take ownership. There is no “holding it’s value” for a car.

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Tesla should have done some sort of phased approach to price cuts rather than such a drastic move. The cuts were probably necessary in order for Tesla to reach new markets but the way they’ve done it is pretty poorly executed. If they phased it in over a stretch of time they wouldn’t have the outrage they are having now from recent buyers.

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They call it unfair, I would rather say unlucky. My stance, I paid what I was willing to pay at the time I wanted the car. Anything the company does after my purchase, is between them and the next buyer. End of story. Learn to be happy with what you have. 

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Well timing was wrong. Europe was waiting almost 3 years for M3. Starts delivering Jan 2019. After 2 months: price cuts. Not good feeling for those that already took delivery.

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3 minutes ago, Vlad Kovalenko said:

They call it unfair, I would rather say unlucky. My stance, I paid what I was willing to pay at the time I wanted the car. Anything the company does after my purchase, is between them and the next buyer. End of story. Learn to be happy with what you have. 

Yes, customers will buy at the price they are willing to pay at the time. But this strategy is a way of Tesla telling current and potential customers that how much money they charge for a car partly depends on a sudden realization of their account balances. It is not a way to encourage brand loyalty, or to assure your customers that they will be paying a rational price for cars that are increasingly branded as mass-market. 

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All previous purchasers can and should be considered 1st movers - sorry, but its their tough luck thay didn't consider that situation 😥

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Their new customers are worth many times more than their current miniscule base.

Almost no one can afford a $60,000 USD car(1%).  $35,000 is still too high, but at least 25% in developed countries can afford that. 

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(edited)

Do people feel cheated when they buy a new LCD tv and next year there is a better, cheaper model out?

I understand that it sucks they paid $12k more than what someone buying it now does, but that happens in a huge amount of markets with less money - airline flights, hotel rooms, electronics, etc.

I do agree with BlackTortoise that it should have been a phased approach - $3k now, etc over 1-2 years.  The complaints would have been a lot less and Tesla would have ended up with more money.  Or do it when the Volvo and Porsche EVs come out as a "response" to the new competition.

Edited by John N Denver
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8 hours ago, Happy Go Lucky said:

All previous purchasers can and should be considered 1st movers - sorry, but its their tough luck thay didn't consider that situation 😥

Reminds me of all the expensive computers I bought back in the days of 286s to 386s to 486s to Pentiums and beyond. Now my phones cost over twice what my computers do. They have more power than those old computers. The 286 had more power than the computer used for the first moon landing. 

Unfortunately, those wonderful computers, AI, robots etc. are now being used by the elites to control the rest of us and obliterate the middle class. 

Robots, robotics, AI, and Drones https://docs.google.com/document/d/1-FB1btwW1iCl6aa3XL0uFw6yedTitPFvnE3qCDMQEm0/edit

1024px-Moore%27s_Law_Transistor_Count_1971-2016.png

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7 hours ago, John N Denver said:

Do people feel cheated when they buy a new LCD tv and next year there is a better, cheaper model out?

I understand that it sucks they paid $12k more than what someone buying it now does, but that happens in a huge amount of markets with less money - airline flights, hotel rooms, electronics, etc.

I do agree with BlackTortoise that it should have been a phased approach - $3k now, etc over 1-2 years.  The complaints would have been a lot less and Tesla would have ended up with more money.  Or do it when the Volvo and Porsche EVs come out as a "response" to the new competition.

Like any tech the prices change fast so yeah you're exactly right. Not to mention the fact that prices depreciate massively as soon as you drive out of the dealer.

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Amusing  : )

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5 minutes ago, Tom Kirkman said:

Amusing  : ) 

The real questions are how many electric vehicles will be sold in 2019 and future years? What will they cost? What percentage of the vehicle market will they make up? Will they last longer than ICE vehicles? Will gasoline savings equal or exceed the initial cost?

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(edited)

Sounds like Elon can't give them away.  What could possibly go wrong?  lol

They're like Corvettes and Cadillacs, if you want one, it is desire, not need.

I would rather have an old pickup truck and a dog.

One thing about demand, if it goes away, it is difficult to bring it back.

Anybody want a wagon and a team of horses to make your hauls?  How about an ox cart that can haul goods one hundred miles?  It'll take seven days to get there, you will need plenty of time, pack a lunch.  

How about a truck with an engine that can generate 800 horsepower and transport thirty thousand pounds of cargo 500 miles with one hundred gallons of diesel fuel?

You'll get a phone call, somebody will be in contact.  There will be demand.

Phones too.  Anybody using an old wooden box phone that has a ring wind on it or do you have a computer phone with Quickbooks?

Demand is what counts.  Supply can be there, with no demand, what's the use? 

Elon should build battery-powered electric forklifts for indoor use, stuff like that.  There is demand for electric powered gadgets for sure.

Not that Teslas aren't cool, they are, just that nobody is going to want them over time.  Not a good buy for the money.

Buy an ICE truck, you'll be happy you did.

yellowchevy.jpg

Edited by buckskinner
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But whose fault is it?  That's what they all want to know.  The government should do something about it.  It isn't fair!  Does AOC know about this?  It should be on her list of wrongs that need righted.  Wah-wah.  There-there child, it'll be ok.  Shhhh.  Go to sleep now.

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It depends for what you have bought your Tesla. To speculate and reselling, to have that feeling of having so much money to afford expensive car, or for driving.

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It's their fault for overpaying for a Tesla by over 50% of what it actually cost's. Don't whine now. 

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4 hours ago, buckskinner said:

Sounds like Elon can't give them away.  What could possibly go wrong?  lol

They're like Corvettes and Cadillacs, if you want one, it is desire, not need.

I would rather have an old pickup truck and a dog.

One thing about demand, if it goes away, it is difficult to bring it back.

Anybody want a wagon and a team of horses to make your hauls?  How about an ox cart that can haul goods one hundred miles?  It'll take seven days to get there, you will need plenty of time, pack a lunch.  

How about a truck with an engine that can generate 800 horsepower and transport thirty thousand pounds of cargo 500 miles with one hundred gallons of diesel fuel?

You'll get a phone call, somebody will be in contact.  There will be demand.

Phones too.  Anybody using an old wooden box phone that has a ring wind on it or do you have a computer phone with Quickbooks?

Demand is what counts.  Supply can be there, with no demand, what's the use? 

Elon should build battery-powered electric forklifts for indoor use, stuff like that.  There is demand for electric powered gadgets for sure.

Not that Teslas aren't cool, they are, just that nobody is going to want them over time.  Not a good buy for the money.

Buy an ICE truck, you'll be happy you did.

yellowchevy.jpg

You can also have an old ICE pickup converted into an electric car.

https://www.theglobeandmail.com/globe-drive/culture/in-pictures-one-of-a-kind-electric-truck-has-an-undeniable-presence/article634393/

Instead of inventing all-new vehicles, Electric Autosports puts electric drivetrains into old ones. For about $25,000, they will sell you a kit that will let you electrify your own car.

image.thumb.png.0af58106e8fa197e0de3a79709ba3518.png

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42 minutes ago, Guillaume Albasini said:

You can also have an old ICE pickup converted into an electric car.

https://www.theglobeandmail.com/globe-drive/culture/in-pictures-one-of-a-kind-electric-truck-has-an-undeniable-presence/article634393/

Instead of inventing all-new vehicles, Electric Autosports puts electric drivetrains into old ones. For about $25,000, they will sell you a kit that will let you electrify your own car.

image.thumb.png.0af58106e8fa197e0de3a79709ba3518.png

I think your post exemplifies @buckskinner 's post to a T.  What do you think the supply and demand is for these old classics being converted?  It's a niche.

Most folks that would search for, buy and restore one of these old classics will also want to hear the tune the engine and exhaust play.  Silence may be golden, but not in one of these babies!  Especially for $25k/kit.  You could buy a lot of gas for $25k!  

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12 hours ago, Dan Warnick said:

I think your post exemplifies @buckskinner 's post to a T.  What do you think the supply and demand is for these old classics being converted?  It's a niche.

Most folks that would search for, buy and restore one of these old classics will also want to hear the tune the engine and exhaust play.  Silence may be golden, but not in one of these babies!  Especially for $25k/kit.  You could buy a lot of gas for $25k!  

 

  The ICE was, at one time, also considered a niche. 

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The idea has always been to lower the price of EVs so it really depends. I guess it's understandable that people are peeved at having paid more for their vehicle just as the price fell but Tesla have always said they want to make this happen so I don't see why people should be too surprised that it did.

I also find the financial press/analyst arguments of "un-iPhone" moment in connection with this change in price to be rather ridiculous, you can't sell cars like iPhones to begin with, at least not in the million vehicles per year range which is what Tesla has planned to do for almost a decade. This is simply because millions of people cannot afford to pay 80k for a vehicle and if they tried we would probably have another debt crisis on our hands (some say this is already happening). iPhones cost a heck of a lot, can be >$700 for the darn little things when they are not subsidised by the phone companies which they usually are. Compared to that, a standard phone would be about 1/2 or even 1/3rd the cost, hence the comparison and who is going to subsidize cars to make their prices 1/3rd to the customer? Nobody, that's who.

On the other hand, Tesla can be the Amazon of car companies since it is the only one actually in a position to do something like this, the others don't really have this option atm and probably wont have it for a long time to come.

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(edited)

Battery-powered computers are a happening thing in laptop form.  An ICE laptop, not so much.  I am more willing to purchase a laptop with a battery to electrify the screen much more than I am willing to purchase a laptop with a micro internal combustion engine like one on a model airplane that can fly because it has an engine.  A small battery-powered model airplane will be preferable, a drone, as it were.  Mount a camera and you'e there, wherever you want to be.

The early majority is Mercedes Benz, BMW, Porsche, Volvo, Ford, GMC, Chevrolet, Chrysler, Fiat, Toyota, Mazda, Subaru, Nissan and even Tesla, maybe.

I have a small garden tiller that is battery-powered.  It works fine, the life of the battery is limited, but so is your physical stamina.

When the battery loses its charge, you're ready for a break.  Never have to add fuel, never have to change oil, it is a very useful tool.

All that is done is to charge the battery, which will last a long time, when it dies, a new battery is available.  Far more convenient than an ICE tool in the shape of a garden tiller that always fails because there is ethanol in the fuel and it damages small engines, every time.

Piece of cake to have a battery-powered small garden tiller that really never fails, only the battery is what finally gives out.

With the use of water and/or steam, ropes, cables and pulleys can replace a lot of electricity demand, it has to be located in close proximity to the factory house, been that way for a long time.  Electricity can travel for hundreds of miles, thanks to Nikola Tesla, factories can be located a far distance from a power plant..

Elon should think about battery-powered agricultural equipment, that's a winner.  Battery-powered ag equipment will work, mini-cultivation and vertical farming practices are innovative.  The direction to go with electro-motives.

http://www.electrictractor.com/

 

 

Edited by buckskinner
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(edited)

7 hours ago, B H said:

 

  The ICE was, at one time, also considered a niche. 

Is that right?  And for how long was that true?  Electric/battery cars/vehicles have been available to the consumer longer than ICEs.  According to the following article, published on the Department of Energy's website, electric vehicles are making something of a comeback.  What remains to be seen is whether or not they can eliminate ICEs, or other technologies, this time around.  ICEs were much cheaper then (By 1912, the gasoline car cost only $650, while an electric roadster sold for $1,750), and so far they are much cheaper now (for similar models/uses).  We'll see....

Yet, it was Henry Ford’s mass-produced Model T that dealt a blow to the electric car. Introduced in 1908, the Model T made gasoline-powered cars widely available and affordable. By 1912, the gasoline car cost only $650, while an electric roadster sold for $1,750. That same year, Charles Kettering introduced the electric starter, eliminating the need for the hand crank and giving rise to more gasoline-powered vehicle sales.

Timeline: History of the Electric Car

Not an invention of modern times, the electric car has a long and storied history. Travel back in time as we explore the history of the electric car.

Edited by Dan Warnick
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(edited)

The Tesla Model X is delightful in that up here in the North Country, with frozen lakes and lots of snow, the seriously rich actually drive them out onto the ice to go ice fishing.  Why haul an ice augur way out onto the ice, then have to hike back to get your pole and lines and lunch and blankets and chair, when your $82,000 Tesla Model X can take it all out there for you.  We call that "ice fishing in comfort and style."  Forget those quaint rickety shacks that guys used to haul way out there on a sledge;  why bother when you can go fishing in a nice warm Tesla?

Unfortunately, the ice while thick cannot support a 50,000 lb. fire truck, so if anything goes wrong, be sure your insurance includes comprehensive with no deductible, and is fully paid up:

image.png.0954c4df605af93b744c9cb499b2e8bd.png 

Hey, it was fun while it lasted.  Oh, well.

Edited by Jan van Eck
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