I thought Musk was smarter than this. Rolling out substantial price reductions is certainly going to generate media buzz. Anyone interested in buying a Tesla from this point forward is getting a better deal. More people can afford the first desirable all electric car. What could go wrong?
I’m sure Musk was thinking the same thing.
Except recent buyers are pissed — and rightly so. Anyone that recently purchased an S or X likely lost 10% value, or more, overnight. In some countries the loss was as much as 50%. That is absurd.
Tesla owners literally protest over drastic price cuts
It aggravated new buyers so much they staged protests in some countries. IRL protests too, not just faceless Twitter rants.
While I’m not a car business expert, it seems like there are better ways to handle this. Change the fascia or body panels slightly. The modified battery sizes (kind of) — or more accurately the repackaging the model names to drop the battery size designations (the models are now S, S Extended, and S Performance versus the prior 85/90/100D for example) — is the perfect opportunity. A slightly new look and model name and Tesla now has the NEW 2019 model line up.
It is all about perception and marketing. If done right people would think it was a much bigger underlying change. The more astute Tesla owners would know it was merely a name game and metal bent at a slightly different angle, but most people aren’t that smart.
Recent Tesla buyers might be upset that Tesla didn’t warn them a new model was coming so quickly — but at least Tesla could claim the All New 2019 models warranted a lower price they could not achieve with the 2018 and older models.
Personally I’m all for the price changes. Buying a certified pre-owned direct from Tesla was a great move. Full warranty direct from Tesla on cars that tend to be extremely well taken care of and reconditioned to like new, for a little more than half the price as new. That is a steal. Now those CPO deals are going to be even sweeter.