1/So let's assume that the $7.5k USD Federal tax credit is reinstated by the Biden administration.
I have read some ppl thinking that Tesla will start offering $30k Model 3 SR+ and Model 3 LR for under $40k.
I really, REALLY, don't see this happening folks. Here's why:
I have read some ppl thinking that Tesla will start offering $30k Model 3 SR+ and Model 3 LR for under $40k.
I really, REALLY, don't see this happening folks. Here's why:
2/ Tesla is already selling every car they make out of Fremont. Unless they figure out a way to massively increase production (like, MASSIVELY) - they would be leaving money on the table by dropping price.
We know that Tesla won't build another Model 3 line until after...
We know that Tesla won't build another Model 3 line until after...
3/...Model Y and CT (and possibly even Semi) are rolling out of Austin. Elon has mentioned an Austin Model 3 line for East coast. Surely unlikely before 2023.
Fremont will free up some capacity when Giga Berlin starts building the Model 3 Compact...also probably in 2023.
Fremont will free up some capacity when Giga Berlin starts building the Model 3 Compact...also probably in 2023.
4/ Tesla has already grabbed a 22.5% share of the small/medium luxury segment with its current price. It's only a question of time and increased capacity before the Model Y achieves the same. So why drop price?
I think Tesla would probably absorb the majority of the credit...
I think Tesla would probably absorb the majority of the credit...
5/...by RAISING price on Model 3 and Model Y, resulting in a net decrease in price by $1-2k/car. The potential impact of this is significant. Tesla would absorb ~$5k/car in revenues. On the 200k or so Models 3 and Y sold in the US in 2020, that's an incremental $1B in sales.
6/ Another reason not to drop price: Tesla is a luxury brand. Dropping price too far, too fast, would hurt the brand.
I could see Tesla dropping price on certain models. Model X is priced higher than most of its peers. Model S Performance is $23k more expensive than LR.
I could see Tesla dropping price on certain models. Model X is priced higher than most of its peers. Model S Performance is $23k more expensive than LR.