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Whenever Tesla drops its prices – like it did over the past week with the Model Y and Model 3, again – we in the media generally celebrate the move, applauding the fact that the most popular electric vehicles in the country have become cheaper and more accessible.
And when Tesla raises them – as it did in May this year – we lament the costs of battery sourcing and rising complexity in the supply chain, or whatever other excuse has been put forward, if the brand has bothered with any excuse at all.
But what we don't think about quite so often is the consumer, about to dive into what, statistically, is likely their first electric vehicle, and wading into a sea of rising and falling prices without ever knowing exactly when the best time to buy is.
It's become a bit like crypto in that sense, with buyers keen to try and buy a 'dip', rather than purchasing when the price is too high and being forced to watch as it falls after their deposit is handed over.
And we're not talking inconsequential amounts of money here, either. If you bought your Tesla Model Y (rear drive) in June 2022, you were asked to hand over $72,300 before on-road costs. If you bought that same car this week, you'd be looking at $65,400.
That's a 10 percent drop in 12 months. Harder still to swallow is the fact that at least eight price variations have been made – some up, some down – over that period. The Model 3, which has been here longer, has gone through more like 15 changes.
Buyers who paid top dollar are essentially stung twice, too, because their resale value has to be looking less than stellar when the new vehicle is already 10 percent cheaper than they paid for it, which surely won't work wonders for second-hand prices.
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Now, there is a flip side to all of this. I was having this very rant in the CarsGuide office the other day, when a colleague pointed out that perhaps Tesla should be commended for lowering its prices, rather than keeping them steady (especially given the white-hot demand) and trousering the difference.
And to that I'd say... perhaps. But eight variations in 12 months, and some by thousands of dollars? It doesn't say much for Tesla's long-term planning.
Let's be honest, giant companies rarely do things solely for altruistic reasons, and the cynical might suggest Tesla's price drops have more to do with making hay while their slow-moving competitors stagger towards electrification - or keeping Chinese brands like BYD at bay - than anything else.
Or perhaps Tesla could explain it some other way. But that's unlikely, because the brand rarely explains anything, to anyone. It just does things.
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This is not a rant against Tesla product, or the people that buy them. The vehicles have not only improved immeasurably over the years, but are also undeniably the best bang-for-buck premium EVs on the market in a whole range of areas, be it battery tech, efficiency or even the transparency of the ordering model.
But the pricing strategy is bonkers, and you just know people are getting burnt by it. I'm of the firm belief Tesla is a true aspirational brand, and that many people stretch to put a Model 3 or Model Y on their driveway. And for many of those people (like it is for me) $7k is a whole lot of money to be fined just for being one of the earliest adopters of a new model.
Cars aren't crypto, and they aren't cheap. So let's treat the people buying them with a little more respect.
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