Buyer’s remorse: We’ve all experienced it on some level. Whether it’s simply regretting spending the money on something as frivolous as a Starbucks coffee or buying a new vacuum sweeper only to find out that the model your sister just got is both better and cheaper. Ok, so maybe that last one is just me.
In any case, the point is that we’ve all done it. Unfortunately, some feel it much more than others.
Take a few new Tesla electric vehicle owners, for instance.
As you know, there’s been a major push over the last couple of years for us all to reduce our carbon footprint or to basically just be kinder to the earth and the environment. For the large majority of the political left and all those in the White House, that means cutting back rather drastically on our fossil fuel use.
And, of course, that means trading in our loud, gas-guzzling cars for what they are calling the future of the auto industry, EVs.
Naturally, as one of the first to offer such vehicles in the United States and abroad, Tesla has done fairly well for itself as the apparent trend of EVs continues. Of course, it doesn’t help that most of their models cost a whopping $50,000 or more.
Then again, perhaps that’s just what they want us all to believe. Based on a few recent and rather drastic price drops on some of their most popular models, there is reason to think that things might not be going very well for the company after all.
If you’ve either been interested in buying a Tesla or just in the know about current EV market values, you might know that Tesla recently started offering some steep discounts to buyers beginning in early December.
According to the company, depending on the model, those who took possession of a new Tesla by December 31 of 2022 could receive between $3,750 and $7,500 off.
As you can imagine, buyers who purchased a new Tesla just before this weren’t exactly thrilled about the news. In fact, more than a few even felt as if they had been cheated out of literally thousands of dollars.
But this month, Tesla yet again offered another major slash in prices, and this time by as much as 20 percent in some cases, according to the Associated Press.
Per the outlet and Tesla prices, both its Model 3 and its Model Y are now eligible for another drop of $3750, or $7,500, per vehicle, per the vehicle tax credits offered by the Inflation Reduction Act.
This will make its Model Y available for around $56,000, down from $70,000. The Model 3, which used to be $47,000, can now be purchased for around $44,000.
Now, for a good many of us average Americans, this doesn’t exactly make the high-end EVs any more affordable.
But it does signal that Tesla is trying to bring in more buyers and fast, given the minimal time between discounts offered.
According to Wedbush analyst Dan Ives, who spoke to the outlet late last year, “This is a sign of demand cracks and not a good sign for Tesla heading into the December year-end.”
Indeed, it isn’t.
It also isn’t a good sign that the company’s manufacturing has slowed considerably over the past few months as well. Both their factories in Austin, Texas, and Berlin, Germany, are only putting out a fraction of the vehicles they were just a year ago.
And if that wasn’t bad enough, Barron’s notes that Tesla’s stock prices are way down, too, by some 54 percent or so from what they were a year ago. In fact, Yahoo Finance considers the drop a new “two-year low.”
The why behind it all could be a number of things, from Tesla owner Elon Musk’s involvement with Twitter to the fact that EVs just aren’t as practical or wonderous as they are made out to be.
In any case, it’s clear that some buyers aren’t exactly getting what they paid for. And those who bought before the price cuts are getting even less. As one buyer said, “It feels like you have been cheated and robbed.” And to the tune of what could be over $10,000.