
Tesla increases price of all Model 3 variants, even ‘off-the-menu’ base model - clouddrover
https://electrek.co/2019/05/14/tesla-model-3-increases-price/
======
usefulcat
Translation: we're not going to be able to significantly increase production
volumes soon, so may as well stop leaving money on the table.

~~~
_jal
The funny part, of course, is the $35k pricing only 3 months ago.

Imagine iPhone prices flipping around like that. Sure, different products,
different markets, different pressures. None of which mean you're obligated to
keep tweeting stupid numbers just to reverse them once you're not stoned.

~~~
netcan
If iPhone prices went up by $9, I don't think it'd make the HN homepage.
Tesla's just in super-interesting mode.

~~~
_jal
Pretty sure if Apple announced a cheap model and subsequently publicly waffled
on the pricing multiple times in a short time span, people would pay
attention.

It isn't about one pricing delta, it is about repeatedly being "super
interesting".

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netcan
A whopping 1%. Anything Tesla is big news, I guess.

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gwbas1c
Is this a big deal? How often do major automakers adjust their prices?

~~~
o10449366
It's a big deal because the $35,000 price point was Tesla's big promise.

~~~
asaph
Attaching a specific price to a long term marketing campaign that becomes
entrenched in the minds of consumers should be considered an antipattern. It
locks vendors into a price point that ignores inflation. This can be tough to
break free of when inflation (or tariffs or commodity prices, etc.) inevitably
make legacy price points unprofitable. See 5 cent coke[0] and $5 footlong
Subway sandwiches[1].

Tesla should be able to raise prices by ~2%/year (the rate of inflation)
without it being a big deal to consumers. Hopefully consumers are getting
their annual cost of living wage increases at their respective jobs.

[0]
[https://www.npr.org/sections/money/2012/11/15/165143816/why-...](https://www.npr.org/sections/money/2012/11/15/165143816/why-
coke-cost-a-nickel-for-70-years)

[1] [https://www.npr.org/2019/05/07/721193879/subways-five-
dollar...](https://www.npr.org/2019/05/07/721193879/subways-five-dollar-
footlong-fail)

~~~
arkades
In fairness, 5-cent coke came about because of an unwise contract in which
Coke promised syrup to a bottling company for <5 cents, under the impression
that bottled drinks would never take off. The ad campaign followed, from coke
(not the bottler selling the cokes), as an attempt to keep the bottler from
raising prices, because at that point Coke only profited from sales volume,
not increases in retail price.

This only hurt them after they managed to buy back bottling rights, but the 5
cent coke ads had become deeply entrenched.

~~~
brianwawok
That, and also vending machines. There was no way to do a slight increase in
the price of coke. To go up to 10 cents would DOUBLE the price of Coke. Coke
even asked for congress to issue a 7.5 cent coin, but was denied.

More details:

[https://www.npr.org/2019/05/01/719213730/episode-416-why-
the...](https://www.npr.org/2019/05/01/719213730/episode-416-why-the-price-of-
coke-didnt-change-for-70-years)

------
java-man
"The base version of the Model 3 at $35,000 was also put off-the-menu and can
only be ordered by calling Tesla or going at the store."

so it _is_ available still?

~~~
danso
According to the article:

> _In an email sent to employees obtained by Electrek, Tesla said that it also
> applies to the base Model 3 off-the-menu:_

>> _“Today, in the U.S., Model 3 base prices increased by $400. This price
increase applies to all Model 3 variants, including off-menu Standard Range
and Long Range Rear-Wheel Drive. Leasing for Model 3 Standard Range Plus
continues to be available for $399 /month.”_

------
Theodores
Constant price changes keeps Tesla in the news. People don't care if it is
$400 more this month or $1000 more, that means pennies on the finance that
pays for it. But with each of these price change news events there is that
nudge-nudge for eco-nsumers to get the wallet out for the Tesla their backside
deserves.

There is quite a cottage industry of Tesla watching blogs forever able to make
mountains out of mice when it comes to the latest Tesla news.

~~~
Hamuko
>People don't care if it is $400 more this month or $1000 more, that means
pennies on the finance that pays for it.

I sincerely doubt this.

~~~
mikeash
I believe it. A lot of people don’t care in the slightest what the price of
the car is. All that matters is the monthly payment. I’ve talked to people who
_had no idea_ what their car cost. I had one memorable conversation with
someone comparing cars. They asked what mine cost, I gave the price, and they
said, no, what’s your payment? I had purchased the car outright and so we had
no way to compare, besides trying to reverse engineer financing numbers.

~~~
danso
It's hard to square your anecdotal experience with Tesla's actual marketing
data and strategy. If people "don't care in the slightest what the price of
the car is", then I doubt Tesla would be headlining major announcements with
the price, e.g. "$35,000 Tesla Model 3 Available Now" [0] (there's even an
exclamation mark in the first sentence). Having people unnecessarily fixate on
a price like $35K seems counterproductive for Tesla, given its desire to
upsell features, and natural fluctuations due to changes in tariffs and
subsidies.

[0] [https://www.tesla.com/blog/35000-tesla-model-3-available-
now](https://www.tesla.com/blog/35000-tesla-model-3-available-now)

~~~
mikeash
I said a lot of people, not all people. A lot of other people do care about
the actual price.

