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(Jalopnik)   Tesla frantically tries to reverse course after Elmo's sudden price cuts at the beginning of the year   (jalopnik.com) divider line
31
    More: Stupid, Government, United States, North America, High school, Car, Automotive industry, Sport utility vehicle, Nissan  
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1303 clicks; posted to Business » on 08 Feb 2023 at 5:10 AM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



31 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
HugeMistake [TotalFark]
2023-02-08 6:08:41 AM  
It's almost like Elmo has issues with impulse control.

Huh.
 
Likwit
2023-02-08 6:11:11 AM  
Be careful, Farkers. Remember we were saying that Tesla cut prices because there's just no demand and the competition is so strong? This article makes it sound like they were adjusting prices for the new tax credits. That can't be right because Tesla is double plus ungood.
 
OdradekRex [TotalFark] [OhFark]
2023-02-08 6:15:57 AM  
I'm beginning to suspect that Elmo isn't the greatest stable genius businessman that he claims to be.
 
NewportBarGuy [TotalFark] [OhFark]
2023-02-08 6:19:02 AM  

Likwit: Be careful, Farkers. Remember we were saying that Tesla cut prices because there's just no demand and the competition is so strong? This article makes it sound like they were adjusting prices for the new tax credits. That can't be right because Tesla is double plus ungood.


This article makes it sound like they have no f*cking clue what they are doing. It's a major purchase. People generally plan them out a bit. You had a few thousand people planning out purchases after the price cut and now they are upping the prices almost right after they cut them.

It will lead to two things... some will rush to buy so the price does not go up further or people will just cancel because of being jerked around.

Customers don't like being f*cked with on price this blatantly. As a rule.
 
centrifugal bumblepuppy
2023-02-08 6:36:53 AM  
Fark user imageView Full Size
 
YixilTesiphon
2023-02-08 6:40:21 AM  
So...they increased the price of one model by $1000? I don't think that tells us anything at all.
 
Likwit
2023-02-08 6:51:29 AM  

NewportBarGuy: This article makes it sound like they have no f*cking clue what they are doing.


You clearly didn't read it, then.
 
2fardownthread [recently expired TotalFark]
2023-02-08 7:17:00 AM  
From what I understand from reading around here and there, the IRS or ? has deemed that luxury vehicles are eligible for subsidies, which in this case is a tax deduction from the purchase of a high-priced EV.

So this is a case of "subsidy capture" where a producer will raise prices in response to a subsidy so that the producer gets it instead of the consumer. Tesla and apparently Ford are having to turn on a dime to conform with the change in that tax and subsidy ruling.

That capture happens a lot. The theory is that it is still ok because we "need to support Green" and all that. I will leave it for everyone to decide if the richest man in the world needs more subsidies, and if maybe a guy who can blow 40 billion more or less on a whim really needs to be getting money from taxpayers on food stamps. Cuz the government sure aint gettin its funds from the billionaires.

In general, it is a topic. I got another call from a home battery provider yesterday. They have RAISED their prices because electricity prices have gone up and even the utilities are pitching in a subsidy for them. Sure. Makes sense. But I am left wondering where all the Green spirit went? When people pushed politicians to subsidize green technologies and companies, I don't think it was to fatten up profit margins, I was led to believe that it was going to reduce costs and risks to consumers to support infant industries and start ups. Tesla, and many many others, are taking advantage of the subsidies while laying off employees and paring back operations, which is THE OPPOSITE of what the subsidies were designed to do. Two or three startup EV companies have failed in the last couple of weeks.

So there you are. Someday, somebody will do a study showing that subsidies make new technologies more expensive for consumers. Maybe they effectively RAISE prices beyond what people would otherwise pay and encourage fewer units to be produced rather than more units. Maybe they reward monopolists, encourage oligopoly, and set price floors, which would discourage innovation.
 
Likwit
2023-02-08 7:24:34 AM  

2fardownthread: From what I understand from reading around here and there, the IRS or ? has deemed that luxury vehicles are eligible for subsidies, which in this case is a tax deduction from the purchase of a high-priced EV.

So this is a case of "subsidy capture" where a producer will raise prices in response to a subsidy so that the producer gets it instead of the consumer. Tesla and apparently Ford are having to turn on a dime to conform with the change in that tax and subsidy ruling.

That capture happens a lot. The theory is that it is still ok because we "need to support Green" and all that. I will leave it for everyone to decide if the richest man in the world needs more subsidies, and if maybe a guy who can blow 40 billion more or less on a whim really needs to be getting money from taxpayers on food stamps. Cuz the government sure aint gettin its funds from the billionaires.

In general, it is a topic. I got another call from a home battery provider yesterday. They have RAISED their prices because electricity prices have gone up and even the utilities are pitching in a subsidy for them. Sure. Makes sense. But I am left wondering where all the Green spirit went? When people pushed politicians to subsidize green technologies and companies, I don't think it was to fatten up profit margins, I was led to believe that it was going to reduce costs and risks to consumers to support infant industries and start ups. Tesla, and many many others, are taking advantage of the subsidies while laying off employees and paring back operations, which is THE OPPOSITE of what the subsidies were designed to do. Two or three startup EV companies have failed in the last couple of weeks.

So there you are. Someday, somebody will do a study showing that subsidies make new technologies more expensive for consumers. Maybe they effectively RAISE prices beyond what people would otherwise pay and encourage fewer units to be produced rather than more units. Maybe they reward monopolists, encourage oligopoly, and set price floors, which would discourage innovation.


Hey, this is slightly less idiotic than your usual, Gish. And you managed not to lament some imaginary "unfair treatment" of the fossil fuel industry. Congrats.
 
thornhill
2023-02-08 8:26:55 AM  

NewportBarGuy: Likwit: Be careful, Farkers. Remember we were saying that Tesla cut prices because there's just no demand and the competition is so strong? This article makes it sound like they were adjusting prices for the new tax credits. That can't be right because Tesla is double plus ungood.

This article makes it sound like they have no f*cking clue what they are doing. It's a major purchase. People generally plan them out a bit. You had a few thousand people planning out purchases after the price cut and now they are upping the prices almost right after they cut them.

It will lead to two things... some will rush to buy so the price does not go up further or people will just cancel because of being jerked around.

Customers don't like being f*cked with on price this blatantly. As a rule.


To this point, I'm a bit skeptical how much the tax incentives and small price cuts really influence buyers.

As you note, most people need to plan out a purchasing a new car long in advance -- it's not an impulse purchase. People not planning to buy a new car don't suddenly decided to buy because there's an opportunity to save a few thousand dollars. At most, maybe the incentives and price cuts allow buyers to purchase the car a bit ahead of schedule.
 
NewportBarGuy [TotalFark] [OhFark]
2023-02-08 8:42:49 AM  

thornhill: At most, maybe the incentives and price cuts allow buyers to purchase the car a bit ahead of schedule.


Oh absolutely... they were looking at falling sales numbers in China, elsewhere and the economy was getting that "SKY IS FALLING" thing going on... plus they wanted to get it under the price point to qualify.

There's no doubt at all that these cuts spurred sales and potential sales.

But it will also piss some people off if they did not get that price and it went up a they were deciding and getting things together to make the purchase.

Some will go through with it, and some will not.

There's no doubt that they have spurred sales with this. That's one of the reasons the stock has taken off. It was oversold, they did the cuts... It's up time for the company.

We'll see how long that lasts.
 
erktrek
2023-02-08 9:02:23 AM  

NewportBarGuy: thornhill: At most, maybe the incentives and price cuts allow buyers to purchase the car a bit ahead of schedule.

Oh absolutely... they were looking at falling sales numbers in China, elsewhere and the economy was getting that "SKY IS FALLING" thing going on... plus they wanted to get it under the price point to qualify.

There's no doubt at all that these cuts spurred sales and potential sales.

But it will also piss some people off if they did not get that price and it went up a they were deciding and getting things together to make the purchase.

Some will go through with it, and some will not.

There's no doubt that they have spurred sales with this. That's one of the reasons the stock has taken off. It was oversold, they did the cuts... It's up time for the company.

We'll see how long that lasts.


Can confirm the price cuts / FOMO did influence us to put our M-Y order in. We missed the original discount but made it before the 2nd increase. Our delivery is set for the end of March.
 
morg
2023-02-08 9:10:53 AM  
Just chasing the tax credits. That was why they lowered the price to begin with.
 
Explodo
2023-02-08 9:41:09 AM  

morg: Just chasing the tax credits. That was why they lowered the price to begin with.


Well, yeah.  If you're looking to buy a car and one of them gets you $7500 back on your taxes, that's a pretty big incentive.
 
zez
2023-02-08 11:15:36 AM  
Do words (acronyms) not have meanings any more? In what world is this a SUV? Looks more like a hot hatch.

tesla-cdn.thron.comView Full Size
 
The Ocho
2023-02-08 11:18:18 AM  

thornhill: NewportBarGuy: Likwit: Be careful, Farkers. Remember we were saying that Tesla cut prices because there's just no demand and the competition is so strong? This article makes it sound like they were adjusting prices for the new tax credits. That can't be right because Tesla is double plus ungood.

This article makes it sound like they have no f*cking clue what they are doing. It's a major purchase. People generally plan them out a bit. You had a few thousand people planning out purchases after the price cut and now they are upping the prices almost right after they cut them.

It will lead to two things... some will rush to buy so the price does not go up further or people will just cancel because of being jerked around.

Customers don't like being f*cked with on price this blatantly. As a rule.

To this point, I'm a bit skeptical how much the tax incentives and small price cuts really influence buyers.

As you note, most people need to plan out a purchasing a new car long in advance -- it's not an impulse purchase. People not planning to buy a new car don't suddenly decided to buy because there's an opportunity to save a few thousand dollars. At most, maybe the incentives and price cuts allow buyers to purchase the car a bit ahead of schedule.


Seriously? It's a 7500 tax credit and a several thousand dollar price cut. Roughly 20% of the price of the car. If you're looking at similarly priced and functional cars and are waiting to buy, and one suddenly offers 20% off you're not going to take that deal?
 
thornhill
2023-02-08 11:35:36 AM  

The Ocho: thornhill: NewportBarGuy: Likwit: Be careful, Farkers. Remember we were saying that Tesla cut prices because there's just no demand and the competition is so strong? This article makes it sound like they were adjusting prices for the new tax credits. That can't be right because Tesla is double plus ungood.

This article makes it sound like they have no f*cking clue what they are doing. It's a major purchase. People generally plan them out a bit. You had a few thousand people planning out purchases after the price cut and now they are upping the prices almost right after they cut them.

It will lead to two things... some will rush to buy so the price does not go up further or people will just cancel because of being jerked around.

Customers don't like being f*cked with on price this blatantly. As a rule.

To this point, I'm a bit skeptical how much the tax incentives and small price cuts really influence buyers.

As you note, most people need to plan out a purchasing a new car long in advance -- it's not an impulse purchase. People not planning to buy a new car don't suddenly decided to buy because there's an opportunity to save a few thousand dollars. At most, maybe the incentives and price cuts allow buyers to purchase the car a bit ahead of schedule.

Seriously? It's a 7500 tax credit and a several thousand dollar price cut. Roughly 20% of the price of the car. If you're looking at similarly priced and functional cars and are waiting to buy, and one suddenly offers 20% off you're not going to take that deal?


Reread what I wrote. I'm arguing that price cuts/credits aren't causing impulse purchases because most people can't make such a large impulse purchase.
 
Hawk the Hawk
2023-02-08 11:43:43 AM  

HugeMistake: It's almost like Elmo has issues with impulse control.

Huh.


Which, according to physics, means issues with acceleration control.
 
CCNP
2023-02-08 12:22:47 PM  

OdradekRex: I'm beginning to suspect that Elmo isn't the greatest stable genius businessman that he claims to be.


He is simply the luckiest businessman in the history of the world. That's why Tesla stock has increased 66% this year. It's just not fair. Traitors to humanity are still out there buying his worthless cars, and it needs to stop. I usually kick, key, or spit on any Tesla car that I see, and I think everyone else should do the same.
Fark user imageView Full Size
 
You Are All Sheep
2023-02-08 12:59:51 PM  

CCNP: OdradekRex: I'm beginning to suspect that Elmo isn't the greatest stable genius businessman that he claims to be.

He is simply the luckiest businessman in the history of the world. That's why Tesla stock has increased 66% this year. It's just not fair. Traitors to humanity are still out there buying his worthless cars, and it needs to stop. I usually kick, key, or spit on any Tesla car that I see, and I think everyone else should do the same.
[Fark user image 843x755]


well he had the proper genetics ie family wallet to propel him forward.
 
slantsix
2023-02-08 1:47:53 PM  
Do people not know that all car companies regularly change their MSRP? Maybe Tesla can't avoid the backlash partly because of their direct to consumer sales model? Either way, prices change like in any business....
 
DecemberNitro
2023-02-08 1:54:30 PM  

zez: Do words (acronyms) not have meanings any more? In what world is this a SUV? Looks more like a hot hatch.

[tesla-cdn.thron.com image 617x322]


JFC my 2010 Honda Accord has more room than that.
 
eKonk
2023-02-08 2:09:51 PM  

zez: Do words (acronyms) not have meanings any more? In what world is this a SUV? Looks more like a hot hatch.

jello mold.

[tesla-cdn.thron.com image 617x322]

FTFY.
 
Likwit
2023-02-08 3:38:46 PM  

zez: Do words (acronyms) not have meanings any more? In what world is this a SUV? Looks more like a hot hatch.

[tesla-cdn.thron.com image 617x322]


Have you seen one in person? They're honking huge.
 
neaorin
2023-02-08 3:55:30 PM  

DecemberNitro: zez: Do words (acronyms) not have meanings any more? In what world is this a SUV? Looks more like a hot hatch.

[tesla-cdn.thron.com image 617x322]

JFC my 2010 Honda Accord has more room than that.


No it doesn't. That car looks smaller in pictures than it does in real life. They also sell the Model Y with a third row if you need it.
 
CCNP
2023-02-08 7:07:33 PM  

You Are All Sheep: CCNP: OdradekRex: I'm beginning to suspect that Elmo isn't the greatest stable genius businessman that he claims to be.

He is simply the luckiest businessman in the history of the world. That's why Tesla stock has increased 66% this year. It's just not fair. Traitors to humanity are still out there buying his worthless cars, and it needs to stop. I usually kick, key, or spit on any Tesla car that I see, and I think everyone else should do the same.
[Fark user image 843x755]

well he had the proper genetics ie family wallet to propel him forward.


Exactly. The 2 days Musk spent at Stanford gave him a leg up on everybody else.
https://fortune.com/2022/02/15/why-elon-musk-dropped-out-of-stanford/

Plus, Musk's daddy owned an $80,000 emerald mine exploited the workers in socialist Zambia.
https://www.businessinsider.co.za/how-elon-musks-family-came-to-own-an-emerald-mine-2018-2

Anybody with $80,000 and two days at Sanford could have done what Musk did, if they were greedy enough.
 
Joey Jo Jo Jr Shabadu
2023-02-09 12:21:13 AM  

Likwit: Have you seen one in person? They're honking huge.


I'm curious as to how you're defining car size, because for an SUV they aren't even close to huge.

neaorin: They also sell the Model Y with a third row if you need it.


They do, but it's the same body dimensions as the 2 row model.
 
Likwit
2023-02-09 1:09:09 AM  

Joey Jo Jo Jr Shabadu: Likwit: Have you seen one in person? They're honking huge.

I'm curious as to how you're defining car size, because for an SUV they aren't even close to huge.

neaorin: They also sell the Model Y with a third row if you need it.

They do, but it's the same body dimensions as the 2 row model.


It's the same size as a Honda CRV. I recently did a test drive and I was able to comfortably sit behind my own driver's seating position. I am 6'4"
 
Joey Jo Jo Jr Shabadu
2023-02-09 1:57:12 AM  

Likwit: It's the same size as a Honda CRV. I recently did a test drive and I was able to comfortably sit behind my own driver's seating position. I am 6'4"


Right, but I wouldn't call a CRV huge either.
 
Likwit
2023-02-09 2:45:48 AM  

Joey Jo Jo Jr Shabadu: Likwit: It's the same size as a Honda CRV. I recently did a test drive and I was able to comfortably sit behind my own driver's seating position. I am 6'4"

Right, but I wouldn't call a CRV huge either.


Perhaps my perspective is skewed from living in Japan.
 
neaorin
2023-02-09 8:44:01 AM  

Joey Jo Jo Jr Shabadu: Likwit: Have you seen one in person? They're honking huge.

I'm curious as to how you're defining car size, because for an SUV they aren't even close to huge.

neaorin: They also sell the Model Y with a third row if you need it.

They do, but it's the same body dimensions as the 2 row model.


Yes, that was kinda the point. You couldn't squeeze a thirds row into a Honda Accord even if you tried.

I guess you would call the model Y a compact SUV in the US?
 
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