Tesla announced across the board price cuts for their vehicles at the end of February 2019. Does this mean the 2018 customers overpaid? Is this the price of being the first on the block with a Model 3? Many customers are upset that Tesla have reduced prices, headlines such as “Tesla owners are enraged that the Company cut it’s prices”.
Despite significant price cuts of $6,000 I have calculated I am only $1,750 worse off for buying in October 2018. If I choose to add Autopilot or Full Self Driving then I will be $1,250 better off than waiting until now. Tesla have taken care of their existing customers by discounting Autopilot and Full Self Driving substantially for purchase after sale. For those existing customers who purchased Autopilot and Full Self-driving with their cars they are worse off because they paid full price for these software features. A quick analysis of the price changes since I purchased my car is shown below.
|July 2018||March 2019||Difference|
|After Credit price||$46,500.00||$44,750.00||$1,750.00|
|Add-on Features||March 2019||March 2019||Difference|
|Full Self Driving||$3,000.00||$5,000.00||-$2,000.00|
Owners who purchased full self driving with their vehicle purchase are rightfully upset. They paid $3,000 for a feature that was to be available sometime in the future and now find existing owners able to buy the feature for $1,000 less just as advanced features are being introduced. Original owners did not benefit by paying for a feature that has not existed until now. Here is a detailed explanation in Ars Technica why original customers are upset. “Price cuts anger some Tesla customers who pre-ordered self-driving ”
I count myself lucky to have got my car at a fair price even taking into consideration a $6,000 price cut from the vehicles base price.