New car owners were incensed when Tesla abruptly announced that it would significantly reduce the price of its vehicles in the United States. While the value of their pre-owned vehicles plummeted, numerous individuals lamented that they could have saved up to $13,000 in expenses.
Marianne Simmons, a web designer, and former Tesla fan purchased her second electric vehicle from the manufacturer in September 2022: a white high-performance Model Y with a price tag of over $77,000. Then, on Thursday, Tesla announced a significant price reduction in the United States. Simmons discovered that she could have purchased the same model for $13,000 less.
Simmons, who is now 32, stated, “I feel like I’ve been scammed.” Since the beginning, I’ve paid $13,306 more. A lot of people who just bought a car are affected by Tesla’s huge price cut.”
Tesla owners must confront this reality right now. Elon Musk, the CEO of Tesla, has decided to lower prices in the United States to boost sales despite low demand. The sharp decline in the cost of new models will impact the resale value of the automobiles owned by existing customers.
Edmunds.com’s director of insights, Ivan Drury, stated, “It’s a blow to any current Tesla owner.” Everyone who bought a brand-new Tesla felt the impact immediately and wished they had just leased one.”
Drewry stated that the reductions in new car prices would immediately have a significant impact on the used car market and could further lower values. He stated that used car prices could fall even further because most people prefer to buy new cars.
About purchasing a new vehicle
The auto industry has had this problem for a long time: A few days after purchasing a new vehicle, consumers see an advertisement offering a discount that could have saved them thousands of dollars. But this time, things are different because Tesla’s discounts are much higher than those offered by dealers, and dealer discounts are typically limited-time sales.
According to research firm Cox Automotive, the average price of a new car reached a record nearly $50,000 in December. And used Tesla car prices decreased by 15%.
Among new car sellers, Tesla saw the greatest price reductions, with its more expensive models suffering the most. According to the data, the high-performance Model Y that Simmons purchased has decreased in price by 19%. Meanwhile, the base price of Model Y has decreased by 20% and the starting price has decreased to $53,000. 14% less is the larger Model S Plaid.
The sharp decline in the value of Jack Bradham’s Charlotte, North Carolina-based black Long Range Model Y, which he purchased in December, irritated him.
The car was ordered by 46-year-old Bradham late last year, and he said he was told he couldn’t get it until January. The Tesla sales team then contacted Bradham on December 10, stating that he could pick up the vehicle before Christmas.
Prices for Tesla have Changed:
When Tesla texted Andrew Checketts of Santa Barbara, California, offering a discount of $3,750. In addition, he said he bought the seven-seat Model Y at the beginning of December. However, he can purchase the vehicle for less money if he waits another month.
Prices for Tesla have fluctuated over the past year. In March, when automakers and dealers were making a lot of money on all models due to a shortage of semiconductors. The company raised prices by 3% to 5%.
In December, Tesla reduced prices in the United States by $7,500, causing the stock price of the company to fall even further. This caused analysts to believe demand for Tesla’s electric vehicles decreased. In 2022, Tesla’s stock price has dropped by 69%.
Cloud service developer Bradham stated that he hopes Tesla will provide Tesla vehicles with more comfort. They will bring free charging. Simmons suggested that the company provide free access to all self-driving capabilities.
However, Tesla owners have few options. Simmons stated, “I’m not going to buy a Tesla anymore because it’s very important to me.” Although I was a huge Tesla fan, I probably will purchase an electric Rivian or Lucid vehicle in the future.”