Shin Ji Won reports
Editor: So sleepy Aeneas
Following the big price cut in China, Tesla has set off a wave of price cuts around the world. New buyers rubbed their hands, and old owners exploded in place. Netizen: When people raise prices, why don't you make up for it?
Tesla, the global price reduction!
On January 6, the first domestic price reduction tide was triggered, setting off an uproar.
Old car owners protested against rights protection, while new buyers bought directly at the bottom of the same place.
Recently, foreign media broke the news that Tesla has begun a "price reduction promotion" around the world.
Foreign netizens who were still sneering on the front foot, after they also encountered the official "backstab", really couldn't sit still, and shouted: Liar, return the money!
Fall, descend to death!
On January 13, Reuters reported that Tesla began a "New Year's sale" in the United States, Europe, the Middle East and Africa.
Among them, the price of Model 3 and Model Y in the United States has fallen by 6%-20%.
In addition, the $7,500 federal tax credit for electric vehicles in the United States has also been in effect since January 1, and when combined, the discount even exceeds 30%.
Model 3: $43,990 ($46,990, down 6.4%, 22.3% after subsidies)
Model 3 Performance Edition: $53,990 ($62,990, down 14.3%, 26.2% after subsidies)
Model Y long-range version: $52,990 (original price of $65,990, down 19.7%, 31.1% after subsidies)
Model Y Performance Edition: $56,990 (original price of $69,990, down 18.6%, 18.6% after subsidies)
Analysts agree that Tesla's price cuts are undoubtedly a heavy blow to smaller rivals that continue to lose blood and traditional automakers that are actively increasing production of electric vehicles.
Prior to this, Tesla's high price may have dissuaded many people, but after a wave of price cuts, Tesla became more "close to the people", so it also greatly expanded the potential buying group.
A spokesman for Tesla Germany said that Germany is one of Tesla's largest European markets, and lower cost inflation is an important reason for Tesla's price cuts in Germany.
In Germany, the price of the Model 3 and Model Y fell by 1%-17%. The best-selling Model Y now costs 44,890 euros, a direct drop of 9,100 euros.
Countries that have reduced prices also include Austria, Switzerland and France.
In France, customers who would have spent €44,990 on a Model 3 could receive government subsidies (the government offers a €5,000 subsidy for electric vehicles over €47,000).
This further expands Tesla's lineup that meets the Biden administration's tax incentives.
For example, the five-seat version of the Model Y. Until the price cut, the car was not eligible, which Musk called "a mess." After the price reduction, the long-range version of the Model Y can get tax benefits.
Deutsche Bank estimates that after deducting tax credits, the Model Y could be $18,000 less than Ford's rival, the Mustang Mach E.
Tesla's gross margin is among the best in the industry, and while it is estimated that gross margin in 2023 will be down 3 percentage points from 2022, analysts say Tesla's "bold offensive move" has ensured growth momentum and left competitors in a difficult position.
Yes, while Tesla's stock price fell, competitors' stocks were hit harder.
In the U.S., GM and Ford fell 4.5 percent and 6 percent, respectively, making them among the biggest decliners in the broader S&P 500, while in Europe, Strandis fell 3.7 percent and Volkswagen fell 3.6 percent.
Analysts at Wedbush said Tesla's big price cut could boost global deliveries by 12 to 15 percent this year.
Obviously, this is Musk's response to the increasingly fierce competition in the electric vehicle market.
Wealth evaporates 200 billion a year, and Musk is empty
Tesla's price cut is big news in your circle.
You know, in the past two years, Tesla's new car orders have been in short supply.
Lately, though, things have really changed.
2022 gave Musk a critical blow - the shrinking of wealth broke the Guinness World Record, becoming the first person in history to lose more than $200 billion in wealth.
Musk teaches you to lose 200 billion a year
Wealth has shrunk so much, plus the "fool" who has not yet found the ideal to clean up the mess on Twitter for himself, and Musk today obviously has some lack of confidence.
He has previously warned that now the general environment is not good, Tesla must reduce prices to maintain sales growth, even at the expense of profits.
Moreover, Tesla's price is "a little ridiculously high", which has reached the point of hurting sales.
Foreign netizens: scammers, return money!
Although this wave of big price cuts has made buyers who have not yet entered the pit eager and excited, the special fans who have just placed orders recently are not so happy.
In a Bloomberg interview, Marianne Simmons, a self-described "Tesla fangirl," said she bought a white Model Y high-performance version in September for more than $77,000.
As a result, I didn't expect Tesla to "unexpectedly" reduce the price!
The 32-year-old web designer living in Naples, Florida, angrily scolded: "Tesla is so unscrupulous, it cost me $13,306 in the first place!" I felt like a cut leek! I'll never buy a Tesla again!"
Big scammer, I bought it less than 24 hours before the price dropped
Jack Bradham, 46, also said that when he ordered at the end of last year, he was told he had to wait until January to get the car.
On December 10, Bradham suddenly received a call from Tesla sales, saying that he could pick up his car around Christmas. After hearing the news, Bradham was so excited that he happily paid $69,000.
Then, there was a price reduction... You can spend $12,000 less on the same model.
Bradham said Tesla should give people who just bought a car some discounts, such as giving away Full Self-Driving (FSD) and providing free charging!
Although I bought the car a year ago, you should now activate FSD for me for free to make up for my loss
Greg Woodfill, a brother from Seattle, bought a Model Y in December, and he had considered waiting until the new year to get a government subsidy, but he thought the $3,750 discount was already good.
Woodfill is an old fan and used to own the Model 3. He wasn't interested in what Musk did during that time, and bought the Model Y purely because he liked it.
But he suffered a critical hit. "Honestly, it was a punch," he told Reuters in an interview. Since they know that there will be a big price reduction, why don't they start lowering it in December?"
Indeed, the front foot increases sales through discounts, and the back foot begins to reduce prices again, and buyers do not make a fuss, it really can't be said.
But some other netizens said that when Tesla raised prices, why didn't I see you to "make up the difference"?
The domestic sale exploded, and the next door cried
Abroad is just getting the curtain, and at home, this big storm of price cuts has been sweeping for many days.
On January 6, Tesla announced in China: Model 3 and Model Y both reduced prices, with a maximum reduction of 48,000 yuan!
The starting price of Model 3 was reduced by CNY 36,000 from CNY 265,900 to CNY 229,900, and CNY 29,000 from CNY 288,900 to CNY 259,900.
#Tesla gets 30,000 Chinese consumer orders in 3 days#, once rushed to the first place in Weibo's hot search.
According to the "Daily Economic News", on January 11, a Tesla store in Shanghai had an average of 150 orders a day, and the store staff had to work crazy overtime until 10 pm every day.
At the same time, Tesla owners across the country have launched "rights protection actions" to demand compensation, some go to stores to pull banners, and some write joint letters.
In response, domestic manufacturers have also followed up with price cuts.
Moreover, drawing on the lessons of previous cars, subsidies were provided to users who had just picked up their cars.
Friends on the other side can only watch other countries and regions around the world welcome price reductions, but their own side has not yet brushed off.
Citing local media reports, Tesla in Taiwan said: "There is no news of price adjustment at present. In addition, local pricing will not necessarily be linked to overseas, and it is impossible to know whether there will be a possibility of reduction in the future."
Resources:
https://www.reuters.com/business/autos-transportation/tesla-cuts-prices-electric-vehicles-us-market-2023-01-13/
https://www.cnbc.com/2023/01/13/tesla-cuts-prices-in-us-and-europe-to-stoke-sales.html