Tesla Price Decrease

[HC_79]

Does anyone think Lucid is overpriced now that Tesla has dropped the price of its vehicles?

 

[borski]

Does anyone think Lucid is overpriced now that Tesla has dropped the price of its vehicles?

I think everyone who bought a Tesla last year is now looking at their cars pretty miserably given the fact that they just dropped in value by 10-20% overnight.

As for Lucid, I think the prices will come down over time, but I think that’ll happen as they build new models, not for old models.

The companies this really hurts are those charging dealer markups, like Hyundai, MB, etc. Hopefully those markups now go away.

What this says is that Tesla was *effectively* charging dealer markups as well, without calling it that.

 

[blueice89]

I was actually going to ask this question as well but then found this thread. I think give Current economics it warrants most auto manufacturers to reduce prices. I think just my opinion Lucid gt will at least drop from 154k to 139k pre price raise and same for all other models.

 

[blueice89]

I was actually going to ask this question as well but then found this thread. I think give Current economics it warrants most auto manufacturers to reduce prices. I think just my opinion Lucid gt will at least drop from 154k to 139k pre price raise and same for all other models.

The other part I can’t quite connect is the price disconnect on the used market compared to brand new. I think so of that was dealers trying to flip but then they got caught. So this also makes me think the used market need to come closer to new considering some of the used models have less than 1000 miles.

 

[Neurio]

I was actually going to ask this question as well but then found this thread. I think give Current economics it warrants most auto manufacturers to reduce prices. I think just my opinion Lucid gt will at least drop from 154k to 139k pre price raise and same for all other models.

Why would Lucid drop their prices after they just raised them 7 months ago? They're in a different segment than Tesla (as they always say). They're a luxury EV brand. Would you expect Mercedes to drop the prices of the EQS lineup? Or BMW with the IX or I7?

 

[blueice89]

I don’t know about Mercedes and BMW never even driven those cars. But I go to the Lucid store monthly, have a lot friends that work for Lucid and then have whole ton of Tesla friends. Not at all official but I think Lucid has a little bit of more supply then demand on the GT. We can see that on some of the video Bears workshop shows with many GTs in the lot. My thought is eventually those cars plus their “existing inventory” need to have some release on price elasticity. Like Borski says it may come over time once they release newer models. Yeah a lot to unpack there and it’s just my opinion. Nothing official just my personal observations.

 

[Artemis]

Why would Lucid drop their prices after they just raised them 7 months ago? They're in a different segment than Tesla (as they always say). They're a luxury EV brand. Would you expect Mercedes to drop the prices of the EQS lineup? Or BMW with the IX or I7?

Mercedes did drop the price of the EQS line in china.
https://insideevs.com/news/622125/mercedes-cuts-eqe-eqs-sedan-prices-china-by-as-much-as-33000usd/
The difference between Mercedes' price drop and Tesla's is "Mercedes-Benz said it would provide subsidies to customers who recently bought the cars at the previous prices." So unlike tesla who just pushed over customers who bought their cars the day before the price drop, Mercedes was a bit nicer about it, and thus it did not cause an uproar, either internationally or just locally in China.

 

[off]

The volume for the market where the Air and MS compete are not the primary driver of the price cuts. Perhaps the question should be asked to irate M3 and MY buyers who purchased prior to these cuts, if the value proposition is better than say, a Mach-E or Ioniq 5.

 

[abbas2099]

I think Tesla can afford to sell their cars at a loss or breakeven point in the short term just to hurt their competition.

 

[Drendino]

Yes, but I also think I overpaid for my groceries and almost every service I hired last year. While I don’t like to see our country being pushed closer to recession, I am happy to start seeing price corrections. I guess the Fed knows what it’s doing, atleast I hope it does.

I walked by the Tesla store today and there were so many people, you would have thought they were giving away free toasters. I wonder how many of these people are being enticed by the lower prices and tax credits for some of the models? I know it’s a party foul to say anything complimentary about Elon, but once again he is leading the industry. Tesla is going to put more pressure on their suppliers to lower their prices, so I doubt in the end the reduced prices will hurt Tesla’s bottom line. We are going to see price cuts everywhere, Elon was just first to do it. Good for the EV industry, bad for resale values.

 

[Drendino]

I don’t know about Mercedes and BMW never even driven those cars. But I go to the Lucid store monthly, have a lot friends that work for Lucid and then have whole ton of Tesla friends. Not at all official but I think Lucid has a little bit of more supply then demand on the GT. We can see that on some of the video Bears workshop shows with many GTs in the lot. My thought is eventually those cars plus their “existing inventory” need to have some release on price elasticity. Like Borski says it may come over time once they release newer models. Yeah a lot to unpack there and it’s just my opinion. Nothing official just my personal observations.

Lucid already offered OG pricing at year’s end to move some GTS. Maybe they won’t make it official, but I don’t think it would be a big stretch for them to continue to offer it. It was definitely an effective way to get some Touring reservation holders to upgrade.

 

[blueice89]

Lucid already offered OG pricing at year’s end to move some GTS. Maybe they won’t make it official, but I don’t think it would be a big stretch for them to continue to offer it. It was definitely an effective way to get some Touring reservation holders to upgrade.

Right OG pricing was used to entice some Touring people so not far a stretch to make it more permanent.

 

[borski]

Right OG pricing was used to entice some Touring people so not far a stretch to make it more permanent.

Genuine question: did we ever confirm that those were fully loaded GTs and not the GTs without the surreal sound pro and DD Pro that are now listed for $139k but are still $154k with the options?

The news articles never stated, and I don’t think we ever got a definitive answer?

 

[blueice89]

Genuine question: did we ever confirm that those were fully loaded GTs and not the GTs without the surreal sound pro and DD Pro that are now listed for $139k but are still $154k with the options?

The news articles never stated, and I don’t think we ever got a definitive answer?

So what was offered to me was a fully loaded GT with original pricing but no deal on financing regular rate. Delivery time was not guaranteed end of year. That was offered to me December. I am not sure what was offered to others.

 

[digiboxer]

Why would Lucid drop their prices after they just raised them 7 months ago? They're in a different segment than Tesla (as they always say). They're a luxury EV brand. Would you expect Mercedes to drop the prices of the EQS lineup? Or BMW with the IX or I7?

Auto OEMs lower and raise prices all the time in response to supply and demand. Last Q Lucid had a 34000 order book. If they triple production in 2023 (22,000 cars) they should be fine with no need to lower prices.

If the order book shrinks, it's diff story. Earning call Feb 22 (?); demand metrics will be key to stock price and product pricing.

 

[MoniputerLM]

I think Tesla can afford to sell their cars at a loss or breakeven point in the short term just to hurt their competition.

I really doubt that Tesla cares about the competition, other than the Chinese.

 

[Neurio]

I really doubt that Tesla cares about the competition, other than the Chinese.

Elon is threatened by Lucid. Why else would he shit talk it consistently? He (in the past) supported his competition (see praise for the Mach E), but has no praise for Lucid because he knows Peter Rawlinson knows his stuff and can make a more efficient car than he did with the Model S.

 

[MoniputerLM]

Does anyone think Lucid is overpriced now that Tesla has dropped the price of its vehicles?

Maybe now.

I paid $169,000 + delivery charge for my DE-P. I paid $154,400, including delivery for my wife's AMG EQS. The Lucid has around 400 more HP and charges faster so I would say the cost difference is appropriate. Having said that, the EQS came with working software and better fit and finish so...

 

[digiboxer]

Yes, but I also think I overpaid for my groceries and almost every service I hired last year. While I don’t like to see our country being pushed closer to recession, I am happy to start seeing price corrections. I guess the Fed knows what it’s doing, atleast I hope it does.

I walked by the Tesla store today and there were so many people, you would have thought they were giving away free toasters. I wonder how many of these people are being enticed by the lower prices and tax credits for some of the models? I know it’s a party foul to say anything complimentary about Elon, but once again he is leading the industry. Tesla is going to put more pressure on their suppliers to lower their prices, so I doubt in the end the reduced prices will hurt Tesla’s bottom line. We are going to see price cuts everywhere, Elon was just first to do it. Good for the EV industry, bad for resale values.

You're spot on---and there's a more sinister slant: Tesla has the market dominance to lower prices to the point that drives competitors out of business . This is illegal under US antitrust law, and a legal risk Tesla likely wouldn't take re. Lucid with a few thousand cars vs Testa's 1MM+; doesn't yet move the needle.

Even at the high end a lot of people make or break based on monthy payment. The only variable Tesla can control is price (not interest rate or residual)

 

[HariK]

I wonder if the ev prices fall due to lower battery prices and also lower prices for all the electronics.