Is there any reason to cry that Tesla dumped prices overnight? What consequences does this have for us car buyers? Tesla has done it before, and will do it again. I'm laughing - read why.
A slap in the face?
The announced tax changes made many people rush to order and have their electric car delivered before the New Year. Last year's best-selling car was the Tesla Model Y. From January 2023, the price of the Long Range AWD increased by 33,510 kroner due to taxes. "Money saved" , many new owners probably thought. But the joy was short-lived. Just 14 days later, Tesla lowered the price of the same model so that the retail price was 104,995 kroner lower, - or 71,510 kroner compared to the price before the New Year. It's hardly a disaster, but it doesn't make you feel good either.
Price reduction in kroner
It is easy to get lost in the frequent price changes. I have taken as a starting point the car prices for a ready-to-drive car – excluding winter wheels and extra equipment. The prices before the turn of the year are taken from Bilnytt.no – while today's prices are taken from BilNorge.no – all figures with an assumed origin from OFV.no. With the exception of errors, the figures are intended to show the effect of Tesla's price reduction compared to the prices before the tax change. That is the one that applies to the vast majority.
| Model | Price now * | Change in January 2023 | Change from December 2022 |
|---|---|---|---|
| Model Y SR RWD | 420 000 | -125 000 | -102 390 |
| Model Y LR AWD | 490 880 | -104 995 | -71 510 |
| Model And Performance | 580 310 | -65 790 | -22 080 |
| Model 3 SR RWD | 388 140 | -50 000 | -34 250 |
| Model 3 LR AWD | 489 190 | -36 708 | -18 200 |
| Model 3 performance | 553 400 | -9 537 | +16 010 |
* Prices include VAT, weight tax and scrap deposit. Tesla quotes its prices without taxes.
Affects the used car trade
– "Many laugh at Elon Musk's many stunts in the automotive industry, but everyone who has an electric car in their garage should cry. We have spent ten years building the company and then the angel of death Elon Musk spends one day bringing us down," says owner and general manager Magnus Groseth at the used car store K Bil in Rud to Finansavisen (quote Budstikka.no)
Several independent car dealers rushed to import Tesla Model Ys for sale to customers before the tax change. There are currently 104 brand new, fully registered cars on Finn.no that were purchased and priced before Tesla lowered their prices. Dealers, such as K Bil, could lose millions due to the price cut. This is not Tesla's fault, but it could affect everyone who has a Tesla in their garage. Since Tesla Norway does not accept trade-in cars, owners have to sell the cars themselves. After what has happened, serious used car dealers are unlikely to dare to have many Teslas in stock. This is bad news for today's Tesla owners when they have to sell.
Opens for new times
There are many things in society that have changed, for example in tourism. The car industry, on the other hand, is in the same place as when I bought my first new car from Chrico, Ensjø, in the early 1980s. One of the factors that has hindered development in the car industry is the large, powerful and static dealer chains. Tesla's price changes have unfortunately hit several independent dealers hard. They have also given many Tesla owners a slap in the face. But I laugh out loud when I think that Elon Musk is about to accelerate a reform in the industry that could have been implemented several years ago – and that consumers will ultimately benefit from.
The large dealer chains, tied to stocks of used cars and leased cars, cannot follow Tesla's price reductions without heavy losses. Maybe smaller, new players can?
Tesla has done it before
If you bought a Tesla Model 3 in Q3 2020, you bought at an "all time high". The dollar exchange rate was high, and Tesla prices increased. But then Tesla opened its new factory in Shanghai and more Teslas than ever rolled out. Norway got cars from China and the prices were lowered - not just once. It has never been cheaper to buy a Tesla. Last autumn, Tesla's Gigafactory opened in Berlin and we are seeing the same thing happen again. Tesla does not produce cars for long-term storage. They will be issued in the same quarter - whatever the cost.
Will Tesla lower prices again?
Guaranteed!
See
InsideEVs.com – Tesla Giga Berlin Production 3000 Cars per Week
