Tesla Lowers Their Prices | How Long Will This Last?

today we're getting into the latest Tesla news including Tesla finally decreasing prices new Tesla software features the return of the long range model 3 Tesla qualifying for new tax credits and more so let's get into it [Music] first up today Tesla is constantly updating their vehicle Fleet sometimes this brings bug fixes sometimes it changes UI For Better or Worse depending on who you ask but other times it brings great feature updates these software updates are particularly notable because they come to nearly all Tesla vehicles even those a few years old it's usually fairly rare that updated Hardware is required to receive these software update features the latest update is version 2022.40.1 and brings a few great updates first is a small update radio station logos quote the media player now displays radio station logos for improved discoverability when searching for favorite stations that's a small update but one great part of Tesla vehicles is their Sentry mode security system this activates the cameras and Records when motion happens around the car but certain things prevent it from operating like when you use dog mode now Tesla has updated this to allow you to use both simultaneously quote your vehicle and pets can be kept safe by activating dog mode and Sentry mode at the same time Sentry mode alarms are silenced if dog mode and Sentry mode are both enabled mobile app notifications will still be sent and video footage will still be saved arguably the most important update here comes with charging charging speed is very important for electric vehicles particularly when DC fast charging on the road and the main thing that determines charging speed is the battery management system with this update Tesla has updated that as well for better efficiency quote during DC fast charging the thermal system controls have been optimized for each charging station's power capability improving both charging and on-route Battery preconditioning efficiency this results in fast charge time and reduced energy costs every owner will be happy to see reduced energy cost and faster charging times lastly is an update to driver door unlock mode this mode will only unlock the driver door when turned on but if you wish to override it and unlock all doors until now you had to do so from the menu on screen now you can simply long press the interior driver door switch and it will unlock all doors and the trunk this update comes after Tesla has added the new much improved energy app to better monitor your real world in-car usage and after that test the updated karaoke it's a small fun update but I noticed it on 2022.36.2 and the model S karaoke can now be played with the rear screen displaying lyrics as well next up today Tesla has officially gained approval from the Environmental Protection Agency in the US for the 2023 model year of all their vehicles previously we knew that the model xn3 had begun official 2023 model year production but for the time being the model Y and S were still 2022 model years now all of Tesla's vehicles are approved and one thing worth noting is that this includes approval for the long range model 3. much more on that in a second first we can see all the specs that Tesla gained approval for and this confirms that Tesla will be moving on to 2023 model year production soon for all of their cars for most brands this means moving on to an updated vehicle but for Tesla there rarely is a change as they change their vehicles throughout the year for the 2023 model y it looks like it will be dropping ultrasonic sensors so one kind of upgrade there that's actually a downgrade for the time being in China they've updated the rear seats to make them more comfortable so this could be coming to the 2023 model y in the US but we'll have to see as for the 2023 model 3 though the model 3 long range has been unavailable to buy on Tesla's website for some time Tesla said it would be available in 2023 with this new approval it's confirmed that Tesla will be making that car and making it available in 2023 but at the same time Tesla's own model 3 website has updated to say see limited current and upcoming inventory below the model 3 long range when you click it there are a number of long-range 2023 model 3s available to purchase no matter what ZIP code you choose as well you can find multiple model 3s available in different configurations it looks like the starting price is right at 57 990 dollars for a base model but they also say that these are expected to be built and available for delivery in November to December so they are taking orders for this car now but in a much different way than usual rather than using their order configurator you can order specific model threes in all of the different configurations they make through the inventory page these have yet to be built so it's a very interesting approach here the long range model 3 is very much available to purchase from Tesla right now but for some reason it's off of their order configurator it could have to do with upcoming tax credits and we'll talk much more about that in just a little bit next up today for the first time in what seems like forever Tesla has decreased prices on their vehicles in early 2021 the base price of the long range model y was 48 990 dollars today that car goes for sixty five thousand nine hundred ninety dollars there have been various improvements to that car but overall it's the same car for seventeen thousand dollars more these price increases have come as a result of global supply chain issues inflation and of course Tesla's high demand allowing them to charge extra over in China this past quarter though many have been concerned with Tesla's demand now Tesla has officially lowered prices and initiated a new referral program there as electric put it Tesla has pulled demand delivers the last we heard about demand from test Tesla came via Elon Musk on the Q3 2022 earnings call Elon said I can't emphasize enough we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see at the same time shortly after the call we saw them introduce new colors in Berlin and now lower prices in China it's unclear the exact reasoning for these changes but most speculated has to do with demand in these markets in China Tesla reduced the price of the model 3 to 265 9001 or 36 800 that's down from around thirty eight thousand eight hundred dollars a two thousand dollar decrease in the model 3 rear-wheel drive price the model 3 Performance also dropped about twenty five hundred dollars the biggest decreases come with the model y though the rear wheel drive standard Range model y dropped three thousand nine hundred dollars the long range dropped about five thousand one hundred dollars and the performance model y dropped about two thousand eight hundred dollars their official post said from now on the price of Tesla Model 3 and model Y in mainland China will be adjusted these cars through the end of the year will also qualify for a new energy vehicle subsidy of RMB 11088 for privately used units at the same time Tesla is dropping prices here they have also launched a new referral program in China it's called treasure chest and Tesla owners get rewards if buyers use their referral links instead of receiving supercharger miles though you receive points that you can exchange for certain things the points also enter you in a raffle prizes in the q1 2023 raffle include a giga Texas belt buckle Model S stroller home charging service package or 24 months of the FSD package for the annual sweepstakes you'll get a giga Texas VIP visit supercharger miles of 50 000 kilometers quote three-year right to use new items in the Tesla Boutique and a rear-wheel drive model 3 or model y for one year for now there are a lot of details yet to be clarified on that referral program but Tesla is clearly initiating this to boost interest further it definitely seems to be working because reportedly when they first dropped prices the Tesla China site crashed due to interest that five thousand dollar drop for of the long range model Y is pretty big it makes that car around nine percent less expensive than before if that came to the US it would put the model y just over sixty thousand dollars instead of above sixty five thousand dollars where it is now so that begs the question how long until these changes come to the US Tesla hasn't seen a decrease in demand according to Elon Musk but it appears that they have a reason to drop prices and initiate a new referral program in China there have been rumors of Tesla's referral program returning to the us as well so maybe the high prices of Tesla's Vehicles as they are continuing to ramp production are finally seeing some negative results this is of course speculation one big change we're seeing for Tesla vehicles is their resale value over the past year used test the prices were skyrocketing such that they were higher than buying new because you could get one right away reports talked about how large Tesla's used vehicle business was getting likely in part because their used prices were able to be so high but now prices have gone down quite a bit for the model y you can now get a one or two year old model y used and actually save money it's still pricey but much cheaper than they were before also worth noting Tesla includes FSD with most of these cars so for this example it comes in at 59 900 it has 37 000 miles But it includes FSD which Tesla now charges a whopping fifteen thousand dollars for it seems that Tesla isn't fully valuing FSD at fifteen thousand dollars here if they were that car would be worth forty four thousand nine hundred dollars since the FSD software is the same used or new the most extreme examples come with the model 3 though in multiple areas around the country there are used model 3s available with reasonable mileage for less than forty thousand dollars this is a standard Range model 3 for thirty seven thousand six hundred dollars and enhanced autopilot Tesla charge is six thousand dollars for enhanced autopilot of course it's 2019 and used but that same configuration today would cost fifty five thousand nine hundred forty dollars prior to buying a charger which is no longer included on new models I see many used model 3s available in the high Thirty thousands in California and some of the most quote affordable models are ones like this one it 2019 model 3 long range at forty two thousand six hundred dollars this is long range and includes full self-driving it also shows a 0-60 in 3.9 seconds so it has the two thousand dollar acceleration boost today prior to buying that acceleration boost ordering through Tesla's inventory page this car would cost seventy two thousand nine hundred ninety dollars nearly thirty thousand dollars more than buying that used one of course buying new versus an almost four year old car is a huge difference but it seems the Tesla's used prices really are dropping for the first time in a while these are some of the lowest prices we've seen for used inventory on Tesla's website in some time even without FSD in the equation since that's pretty confusing as to how Tesla values it this used car is around fifteen thousand dollars cheaper than buying new I personally don't recommend buying Tesla's FSD package because it's extremely overpriced for what it offers today but if I was interested in buying that package buying used might actually be the most affordable way to get it which is very interesting to see I'm curious what Tesla's thought process here in any case these lowered used prices could be an indication that new vehicle prices will end up dropping in the near future in the US as well from Tesla if used prices are going down this much especially from Tesla directly there could very well be a lot of people opting to buy used instead of new as a result of lowered new vehicle demand we could see Tesla do exactly what they just did in China but in the U.S one indicator here could be the impending tax credit the inflation reduction act changed the EV tax credit making a point of sale credit available for new and used EVS 7 500 off new electric cars and four thousand dollars off used ones it will become available on January 1st and gets rid of any manufacturer caps which means Tesla can qualify if they meet other specific requirements the main requirement that comes into play for 2023 is the MSRP cap it's 55 000 for new cars and eighty thousand dollars for pickups SUVs or Vans there are many more specifics but Tesla talked about this quite a bit on their Q3 earnings call and Elon said he expects Tesla to meet the IRA requirements fully furthermore Zachary kirkhorn Tesla's CFO said yes we view the passing of the inflation reduction act as a significant boost towards accelerating automation while also scaling the battery supply chain at large in the United States for specifics he said we expect treasury to publish detailed guidance by the end of the year until such time it's difficult to fully determine the eligibility criteria but we believe Tesla is very well positioned to capture a significant share of that for solar storage and also electric vehicles what's unclear here is exactly what Zach or Elon mean by meeting the requirements fully for the model y Tesla is planning to ramp up battery production in North America to meet all battery requirements of the inflation reduction act those become stricter over the next couple years the model y already meets the MSRP cap of an SUV under eighty thousand dollars as far as we can tell but for the model 3 it's unclear what would happen in 2023 the standard Range model 3 should qualify for 7 500 off but the long range model 3 that we talked about earlier is unclear today it costs 57 990 so it would be MSRP capped but lowering the cost by three thousand dollars would put it right under that cap so that car would actually become ten thousand five hundred dollars cheaper than today for consumers in theory if Tesla dropped the price that much is that what Tesla meant by meeting the requirements maybe they were focused on meeting battery requirements that become stricter in the next few years but the long range model 3 is a very popular car for Tesla it's so popular in fact that they stopped taking orders earlier this year could Tesla meeting the MSRP cap of 55 000 for the long range model 3 also be what Elon meant by saying they'll meet all Ira requirements in China they just dropped certain model 3 prices by two thousand to twenty five hundred dollars so I don't think a three thousand dollar price drop is out of the question in the US by any means either way Tesla is definitely in an especially odd limbo of High new vehicle prices lower used prices and a big tax credit on the way these all could be affecting consumer purchasing in many different ways what do you think though will be finally see Tesla decrease prices in the U.S leave a comment below to let me know your thoughts next up today a product Tesla has talked about making for some time is a home HVAC system Elon Musk initially said quote Oh man home HVAC that is super energy efficient quiet and purifies the air would be great we developed it for the car but it can be scaled up for home use later he added I'm dying to do super efficient quiet home HVAC with HEPA and water distillation it's weird but I really want to do it earlier this year when asked about it Elon said it's on the future product list especially important in places like Austin which has Next Level amounts of pollen in the air Tesla does have a lot of experience making effective HEPA filtration systems in their cars the only car they ship today without one is the model 3. so this could very well be a product that they expand to furthering their home offerings as always Tesla products like this take a lot of time but once again this week Elon confirmed it will happen it's a small piece of news but it adds to the list of products Tesla still plans on making in the future we'll keep an eye out for any developments there for now of course Tesla's main focuses are their vehicles home solar and energy storage and AI last up today some updates about rivian we're starting to see the rollback of many features people loved about rivian's cars when they were announced scaling up electric cars is incredibly difficult and Tesla is one of the only companies to successfully do it profitably at the same time they've done it by eliminating certain features and shipping their cars with fairly simple Interiors so when people see vehicles from Brands like rivien offering awesome accessories like a powered tonneau cover or Camp kitchen they get really excited the unfortunate thing is rivian is now facing scaling issues here last week rivien officially announced their Camp kitchen which has yet to ship to any customers is being entirely redesigned for customers with the camp kitchen pre-ordered rivian said we're reaching out with an update regarding the camp kitchen you pre-ordered we are temporarily pausing production of the camp kitchen as we work to update its design the note goes on for reasoning and explains that it will be removed from this order since the car will be delivered prior to the kitchen becoming available I personally figured the kitchen may never see the light of day and it's unfortunate to be proven right here arguably the bigger change with rivien though is with their tonneau cover for some time issues with the powered tonneau cover have been known and when I took delivery of my r1t they told me it was being redesigned and will likely have issues that service will need to fix as a result rivien is now pulling the powered tonneau cover from production entirely in this letter rivien said we recently shared with r1t owners that we are upgrading the powered tonneau cover as we go through the process we are removing the powered tonneau cover from production they don't have a reintroduction date yet and all orders today will now only come with a manual cover or no cover at all for now it will still include the side rails for this cover but in early 2023 they'll transition to a design without integrated side rails that's a huge change for the r1t as that feature has been an exciting part of that car for years leading up to production it's also a very unfortunate changeover process it really shows how challenging scaling cars is for a new company and while many of these updates and changes are are to be expected it's always unfortunate to see ravian still has a backlog of many orders so hopefully from here on out they are able to navigate through and avoid changing features on pre-order holders I'll keep you posted so far my r1t powered tonneau cover has worked fine that's all the latest Tesla news for today so in the meantime if you want to see 13 new EVS coming in 2024 you can check out that video linked up here or in the description below thanks so much for watching and I'll see you on the next one

Channel: Ryan Shaw

Views: 215,674

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Id: tCGevrK3TvM

Length: 16min 39sec (999 seconds)

Published: Tue Oct 25 2022