Tesla Drops Model 3 Prices To Offset Expiring Tax Credits

$44K and then you add a few options to make the car livable and it's $60K.

I would not be surprised if they are using the VW tactic. You drop the base price and then increase the cost of options and bundle them so people have to buy multiple option groups to keep the price sky high.

Options are the exact same price as before and there is not much to add on the base version. Here are literally ALL the options:

- Paint upgrade: $1,500 to $2,500
- Sport wheels: $1,500
- White interior option: $1,000
- Autopilot: $5,000

Even in the worst case scenario you are talking $10k more for every upgrade possible ($8.5k on the performance trim since it includes upgraded wheels). There are no maintenance plans because the car only need maintenance every two years.

haha, $2k is a joke

So much for the already minuscule Model 3 profit margin.

Can't wait to see how the pile of news gets reported in Tesla's 10K

It was a 15% margin in Q3, will be higher in Q4. Gross margin is averaging $8k per car, they can absorb a $2k discount for now. Will be tighter on the $35k car, but that is not getting a price drop.

Thanks SJD - many of us were headed in the direction to conclude that you were in HR but it seems that TSLA finance or executive office or Investor Relations is where you park your Model 3.

Can you get us in the autospies community invites to TSLA's next "investor's day" so we can sample some free shrimp and chardonnay courtesy of Elon? Investor days make the car manufacturer events that the 00's in 'Spies' attend seem like chuck-e-cheese parties by comparison. Hook us up! Any other info you want to share? Or is this all 'pillow-talk' from wifey?

I'll take that as a compliment, I would love to be in the Tesla executive office. That's probably the only department where I could get a job at Tesla and still afford to live in Silicon Valley =)

You should buy one share of stock and come to the next investor day, it's pretty interesting. I've only gone to one, no wine or apps but they had a Semi and Roadster there which is far better than free booze for me. Will definitely be at the next one.

Are you all getting paid for being dumb?

Are you all getting paid for being dumb?

Demand is so strong that Tesla is cutting prices!

Guess what, 75% of all Model 3 sales in Q4 were not even o reservation holders. Plenty of demand and a lot of people waiting for the base price version.

And Tesla rapes the reservation holders by building for them LAST.

As I predicted, think they will still do something else by the end of the quarter.

In other news it was announced today that GM also sold 200,000 EV units in 2018. So they will also be faced with a declining federal tax credit. No matter the vendor, eventually these vehicles will have to sell for the price on the window based on their merits and not on a tax break.

I'm not surprised at all that Tesla is dropping prices. The Model 3 is a very insubstantial looking car IMO. I'd rather have a used Model S than the 3.

Technically I have both, like the 3 a lot more even without factoring for the extra range and autopilot.

Tesla's gross margin is a total lie. They don't intentionally don't calculate it in the same way as any other company because the results would be so awful.

Tesla excludes both cost of its service network and the cost of R&D (which, if they ever build additional models and factories would be absolutely massive).

Technically I have both, like the 3 a lot more even without factoring for the extra range and autopilot.