Note that I filmed this video on Monday, before Tesla's announcement this week that they're significantly cutting prices on all their new models -- a move that will only further serve to significantly reduce the value of used Teslas.
I think there's also a fifth point: Increase used car supply due to 3 year lease returns. The Model 3 came out as a 2018 model year, but in the beginning production rates were really low so not a lot were made/sold. We are at the point where a decent supply of leases are expiring.
Find it crazy he said Elon has positioned himself as a conservative. Guy is anything but. He grew too power with leftist ideals and financial backing. Other then free speech, which I personally know multiple leftists that support free speech. What would make him conservative? People have gone very very far left. The ‘right’ is so broad now ppl include Elon musk and Alwx Jones as allies 😂 do ppl not see this cult of mind thinking from the left? Either your completely onboard or your an enemy, to the point Doug believes it effected the value of his cars. I don’t really lean either way jus found this odd.
You know what's a huge deal breaker for me? the freaking enormous repairing prices on any random thing like a door handle compared with a "normal" car. Not to mention the fact that as a car guy, I would like to change some of the broken parts myself like a tail light for example, not be forced to go to their service. Fast acceleration and some gimmicks can't replace what some of us really want from a car.
@@eddypan007 no, the closesti Tesla dealer is 731 miles away in the text contry from where I live. Imagine having to tow your car that distance each time you have a problem with it. Besides that, to be honest, it cost more that I am willing to pay for a daily driver.
In Australia they dropped about 10% in the past 3 months as I've been following the prices closely. I also happened to test drive a model 3 in early Dec and I've asked for their prices of pre-owned 2021 and up, and the guy said the cheapest one they have is $67k aud. To which I said 'no thanks because online they are $10k cheaper'. He almost fell off his chair and immediately went to check for himself lol. But since then the same cars I saw 6 weeks ago are still for sale and they are dropping even more.
Yeah Australia definitely still seems quite affected by the waiting lists for most major cars than other markets. Pretty much all the popular vehicles still have long wait lists.
@@proarcher6438 We are RHD in the UK too, but we now have zero waiting on new Teslas, so you can drive them away the same day, this is why the used prices have crashed, also the £8k discount is nice, meaning you can pick up a 23 Y for £42k now. I don't know how much that is in oz money...
Here in Britain, electricity prices have skyrocketed (about 42 US cents per kWh) making EVs less attractive compared to gas , plus in the 22/23 winter there was a lot of press coverage of long queues at the small number of Supercharger sites as Tesla range fell in the cold weather. The charging infrastructure in Britain just isn't ready for mass EV ownership, despite our utterly corrupt politicians banning sales of gas cars from 2030
I r a n can block the hormuz strait and ur gas prices skyrocket to 20 bux a gallon and electricity prices get brought up with it along with food inflation skyrocketing so 1 move the pretender in chief makes can be destructive
With the recent price cut, a new model 3 performance now can qualify for the $7500 federal tax credit + $4000 tax credit in NJ if you configure for less than $55k. That means a new model 3 performance with barely any wait list can be bought for $45k after fees including credits. Edit: The NJ rebate is $2k for vehicle prices between $45k-55k and $4k for below $45k. It is offered point of sale.
Another factor you forgot to mention is the long list of service issue, delays and price gouging on repairs, replacement parts and bricking some used cars. This has a big effect on people looking for moderate ownership costs. Many other luxury cars drop like rocks from some of these issues.
Indeed; It's bad when a base model Honda Civic has better build quality and service than a car that's been perceived since it's inception as a luxury brand. And when simply getting noticed by Musk for bringing some of these problems to light results in your vehicles getting remote bricked, it makes one not want to purchase anything made by any company he runs. (See @RichRebuilds for a fantastic example of this.)
This is one thing. I live in an upscale mountain town and we have a lot of Teslas around here. Almost every one of them that I see has fairly obvious manufacturing defects. Uneven panel gaps, mis-aligned trim, funky paint. Consumer Reports owner surveys find the same sorts of problems, so it is not just my small sample. I'm not sure I'd want to buy a car with the build quality of a 1960's Detroit sled. Everyone else building BEV's knows how to build cars. Not so sure that Testa does.
The one thing that also has a big impact that you did not mention is the federal $7,500 tax credit and price cuts which makes all model 3 and most model Ys much cheaper. Examples: Dual Motor 5 seat model Y was 65,990 now 45,490. Model 3 Rear Wheel Drive was 46,990 now 36,490. Model 3 performance was 62,990 now 46,490. With these changes used car prices will continue to go down unless wait times for new models gets much longer again.
This is the biggest factor IMO. I don’t understand how Doug didn’t mention this. Everyone knew that new Teslas were dropping by $7500, so of course used car prices will drop proportionally.
@@UnibrowBandit "Note that I filmed this video on Monday, before Tesla's announcement this week that they're significantly cutting prices on all their new models -- a move that will only further serve to significantly reduce the value of used Teslas." - pinned comment
You make a good point that when used model 3’s start hitting the $20k mark, that’s almost too good to pass up. It’s a lot of car for the money and that will have the effect of devaluing used Leaf’s, Bolt’s and other cheaper ev’s. I just got done with a 2021 Leaf SV with Pro-Pilot and it is no comparison to a model 3 in any way…these are listed in the high $20’s on dealer lots as comparison.
This video was really fascinating! I’d love to see more auto market analysis videos from you in general. You bring a unique perspective and very good insights.
I had a Model Y on order. I let it drop for a number of reasons: self driving doesn't work well enough and got worse after radar was removed. the Fremont Y has a bent frame so body panels and doors don't fit and rattles and squeaks cannot be fixed and there is no sign that Austin Ys will be available. the value of the cars drops to zero after the 8 year drive train warranty runs out because of the potential cost of replacement of battery, drive units etc.
I think the biggest factor that you mentioned is the waiting list. We've seen this same practice in the consumer technology market over the last few years. Low supply/high demand and waiting lists results in a large number of people purchasing the product with the intent on flipping it for profit. The manufacturer pushes to increase output but as long as this scenario holds true, it creates a positive feedback loop with rapidly increasing supply. Once one of the factors changes and demand drops you end up with a rapid swing of the pendulum back the other way, flippers are caught holding the bag, no one wants the products anymore, and there are a ton of them out there, over supply and under demand. Rapid price drops are the result.
I will add another factor: my 4 year old model 3 still costs $2000 for annual insurance. As new buyers become more informed, fewer and fewer people are willing to pay that kind of insurance - it effectively cancels out a big chunk of gas savings, if not all of it.
I know people who had that argument with neighbors before EVs, just over "gas mileage", who want to nag others into diving what they think they should drive. First of all, a new car is wasteful, compared to one you already own. Reuse, reduce, then recycle. Second, you can buy a lot of gasoline for the $30k (now 48k+), the more expensive repairs, the increased insurance, etc. Many people would save money even on big drive train repairs (the problem is just like the new car, they can't really afford it, but they get approved and continue to dig those financial holes.). Even worse, as the shortages have proven even if you're willing to pay, they aren't prepared to fix it. We live in a society where it's basically expected for a couple of bankruptcies over the course of a lifetime and it makes everything cost more for everybody.
That’s one of the reasons I’ve decided to keep my PHEV (2021 Rav4 Prime) instead of going to a fully electric vehicle. I was slightly thinking about going with a 2023 Model 3 Performance vehicle but made a list for keeping my Prime: 1) Yearly insurance cost 2) 600+ total mile range (fully charged and with a full tank of gas) 3) Real world EV range of around 45-48 miles depending on external conditions, which is enough for my daily commute needs. 4) Toyota reliability 5) Toyota build quality (Prime vehicles are made in Japan) 6) Ability to buy parts for my Prime without any issues 7) Ability to service my vehicle without having to worry about servicing time. 8) No run flats and having a spare tire in the back if I need it when I take a road trip. I might give EV’s another serious look in the next decade when certain issues are addressed, but for this decade, I think PHEV might be the best comprise for people like me.
@@bipbop3121 it is sad, but we as a global society haven't learned the slightlest about dealing with our wastes, reusage and all that. Save a few tiny countries who have it figured out for the most part, the majority of nations have no clue about how to keep the whole system runing eficiently and as clean as posible. Just look at the waste left on the Everest which nobody is taken care of. People need to get fucked real good in their assholes and have their comfortable lives shaken to the core so then they might learn something useful for their next round if there's any new round at all.
If you go with tesla provided insurance that you sign up for via the tesla app, insurance becomes significantly cheaper. Most of the new tesla buyers will end up going with tesla as the insurance provider. A win long term for Tesla. Doug didn’t mention this fact.
Another nice video Doug. We have a 2022 Model 3 and still love it, lol. You’re still right on with your assessment. We ordered ours 18 months ago and have had it for a year. As of today a new one is actually the same price we locked in on 18 months ago. It was a crazy carpet ride of misguided values since then. It has now come back to reality. Always enjoy your stuff Doug, please keep it coming !
to me the fact elon bought twitter and exposed how corrupt it was in swaying popular opinion on social issues made musk more of a hero to me. it was absolutely incredible that some of the things many ppl thought was going with media and govts attempting to sway ppls minds - turned out to be true. elon was instrumental in informing the world that there in fact was some collusion going on. i hope we all look at what he exposed and look to him in an even brighter light than before.
Definitely keeping an eye out! I wanted a model Y almost a year ago, and a used one was 70K OTD. If I could score one under 40K, that would be a phenomenal daily commuter!
Average cost of a new car is around $48k in the US. Plus electricity during off peak hours (aka at night) is pennies to charge up full. So working out the usage per month cost, it's on the same level as a base model Toyota RAV4 for me.
@@jimmysgarage9068 Doesn't make sense. Better upload on the main channel and get 20x the views. More Doug I mean the garage and more personal videos, not the secondary channel.
Yes this. Lately I’ve been clicking on these talking analysis videos in a second. I’m basically watching them more than his regular videos tbh even though those are like 10 times more frequent.
Interest rates today are ridiculously high compared to just a couple of years ago. So automobile sales across the board should continue dropping until interest rates go back down. All you need to do to confirm this phenomenon is look at declining home sales, which also heavily depend on interest rates. 🤷
Between the rebates and the price cuts which started in December a new Tesla is 15K cheaper than in November. I think that explains it.....BTW love the channel!
Locally, the demand for EVs in general, has really fallen in my area after hurricane Ian. For several weeks people were not able to charge their cars without power while gas stations continued to operate with generators running the pumps. Tesla certainly has the advantage with its charging infrastructure, something I didn’t realize until living with my Mach-E for 8 months before selling due to the unreliable charging infrastructure anytime I traveled. But, without electricity neither has the advantage. Just something to consider before buying an EV if you live in a disaster prone area.
@@toddtheisen8386 With a generator. Technically you could charge an EV with a generator as well, as I’m sure many did. Just talking to people who work in the car sales industry in this area, one of the drawbacks people mentioned was that. I always kept my Mach-E fully charged during hurricane season just as people should keep their gas tank full. With over 300 miles of range I could’ve easily left after a storm so I don’t see it as a problem personally, but many perceive it to be and it certainly is for people who need to stay in the area to work after the storm.
@@coryturke7336 Honestly a generator would be more practical. The battery packs would have to be massive, even a Tesla power wall is only 13.5 KWh weighing ~350lbs. A model 3 extended range battery has a capacity of 82KWh. Just as an example, a caterpillar 12000 watt generator running at 50% load will burn 1.13 gallons per hour. So charging at 6KW will charge the battery (assuming 100% efficiency) in 13.67 hours or after burning 15.44 gallons of fuel. Given the 358 mile range, that translates to 23.2 mpg, not too bad for an emergency situation. Obviously, 100% efficiency is not achievable but doing that for a few weeks until power is restored isn’t too bad even at a more reasonable efficiency rate.
I remember when the Prius was fairly new and they were selling for 20-22k in DC while my parents, living in San Diego, were seeing people paying 35k for the same car was in much. higher demand in San Diego. Once everyone who wanted one got theirs, prices settled where they are today. At this point, I feel it's fair to say that the line of people waiting to get a Tesla has shrunk and everybody who wanted one has already had an opportunity to buy one. Also, as people become aware of the MASSIVE cost of battery pack replacement with the cars being out for a while, some of the shine has come off of Teslas on the secondary market since not a lot of people are going to overlook a possible future repair bill the size of a new Corolla and not factor than into their valuation of a used car.
I think this is a good explanation. Coming from someone who runs a new vehicle dealership. I believe the waiting list point is the biggest reason for used prices declining. This is true across the entire auto industry.
@@JLchevz Yes, the availability of new cars is driving down used car pricing. Basically supply and demand used cars went way crazy in the last couple of years with the shortage of chips and everything else that was affecting new cars. What you're seeing now is dealerships are receiving new inventory and more and more new cars are starting to see some incentives now to keep the turn rate going. Again, supply and demand. Typically used car prices drop in December anyway as dealers are dumping their aged used inventory at the auctions and you'll see them start picking a little bit back up in January and February as tax season starts.
Tesla dropped the prices and they qualify for a $7500 credit. You can now get a brand new Model 3 RWD for $36k (270mi range). That makes a 2018 Model 3 with a bunch of miles worth low 20s max. The 2018 standard range (220mi range) Model 3s will be rolling into the high teens soon. I sold my Model Y just before the price drop announcement, that dealer is going to take a bath on that car. Got a Model X for almost a direct trade. Win.
The interest rates are what I think of most ... I got 2.65 on a used luxury car in 2021. Now I see loan estimators on websites estimating 9% or more for excellent credit 😳
@@krassimirpetrov7131 glad I got the house low too... This is crazy. I wanted to consider a Tesla for fuel savings (93 octane is so expensive) but the interest rate on a new loan makes it seem not worth it..
9%, non-sense. I got 4.99% from BMW last month on a new car purchase. My credit union was less than that even. But yes rates are way higher than 2 years ago
I'm a used car dealer I don't agree with anything you say other than the price of borrowing money has gone up dramatically which keeps people from buying luxury purchases and limits what they can afford.
you have to compare the used car depreciation to pre COVID levels, they raised their prices like 7 times during COVID so it seems like their depreciating faster than normal but its just coming back down to pre COVID levels
The price of everything is coming down. The video gives the impression that Tesla used cars are worthless. They hold their value better than pretty much any other vehicle.
I'm reading this situation like this: before Jan 23 I could buy a new Model Y if I sold my Model 3 Standard Range +10k. Now I'm going to have to work a bit harder.
The market was crazy.... I had a 2014 Lexus LS460, I paid $18,500 for it 3 years ago, in September I got hit and it was totaled. The insurance company gave me almost $26,000 for the car. I've never had a used car that I held on to for over 2 years and made ANY TYPE of profit, never mind almost $7500 That is what the values were, getting a replacement was very hard even at that money.
I would guess that your insurance, maintenance and fuel costs brought the profit to near break even. Even so, use of a vehicle for 2 years for free is great!!
Great points and all minor factors, but you missed the biggest one by far. The 7,500 credit was announced a few months ago, which decreases the price of a new Tesla, and thus the relative value of the used cars. That and the dramatic increase in production helping to satisfy demand.
Increased competition is definitely one of the reasons. I used to want a Tesla cus it was electric and thr technology seemed great, but now these other brands offer more in my opinion. The design is just more attractive in the other brands than Tesla's. Especially when you talk about teslas build quality.
Competition definitely caught up. Additionally, Elon's chair position being replaced meant the successor would actually hit production and sales numbers. However, crazy and innovated things Elon would push are no longer as prevalent.
@@GlennTXstate10 If you think that anyone is making EVs on the same level of engineering as Tesla you really don't know much about EVs. No one has "caught up", in fact Tesla is continuously pulling further ahead of everyone. Other OEMs may offer superficial frills and style to decorate their EV platforms that are at the least, five years behind Tesla, and in many areas they will never even equal today's Tesla. Aside from BYD, who is far behind Tesla in every metric and about equal in price now, no one is able to produce an EV at a profit except Tesla. There is a reason why Tesla is the safest car in a collision, has the highest customer loyalty, and whose customers on average are the happiest with their autos. You can believe all the fake news put out by the various commercial media who are hungering for the billions of dollars that Tesla does not have to spend on ads, like GM over 2 billion on ads last year, but you are just being manipulated by people who have a pecuniary interest in making Tesla look bad, so it will be forced to pay the advertising vig like everyone else. But it doesn't have to play that game, just because their cars are superior in engineering and some people care more about that than having lots of body styles on already out-dated platforms.
@@SkyRiver1 it look like your tesla owner or your fanboy of tesla just eccept other brand are catch up which cause value of tesla to drop ,you don't need to use very long text to convince someone ,just face the reality
@@nikky4757 The reality is that if you think other EVs are on the same level as Tesla you know nothing about EV engineering I suggest you refer to Munro Tech. www.youtube.com/@MunroLive/videos Any child can see that the reason that used Tesla's have dropped in price is because of government subs, and the fact that Tesla has lowered it's price. Which is good for everyone, especially those in the market for a less expensive EV that is not some laughable BMW attempt or GM trying to convince people that their EVs are somehow on par.
@@SkyRiver1 Get elon's balls out of your mouth, do you think these companies with over 50+ years of being the automotive business can't catch up to a tech company?
Agree about the tech worker side. Saw so many in the parking lot. Mostly it was a cool toy rather than a wise purchase. I didn’t get one. Prices too high, battery costs are crazy, and their interiors are depressing.
It is important to understand that CarMax did a blanket $12,000 discount across the board on Tesla vehicles in inventory. Some other car buying sites like Carvana and Vroom has stopped buying Tesla vehicles completely in certain locations. Vroom quoted my 2022 Tesla Model 3 Performance with 13k miles at $33,000 the day after the price cuts. That is half of the $66,000 offer they gave me 6 months ago.
In August, Carvana, Vroom and Carguru quoted me around $54,000 for my 2021 Rav4 Prime with 13K miles. Now with 17K miles, I’m basically looking at $40,000. I paid MSRP for my Prime (43K) in 2021 and qualified for the $7,500 tax credit, so those two were the main reasons why I bought my Prime when I did in 2021. I was looking to sell my Prime to make the jump to full EV with a 2023 Model 3 Performance, but now, I’m keeping my Prime for a multitude reasons. PHEV looks to be the best of both worlds at this point in time.
Regarding "the competition" -- I just ordered a Chevy Bolt EUV. My requirements: primarily "commuting appliance". - I qualify for GM supplier pricing, so I was able to see the price I would pay. Minimize the dealer nonsense. Also cuts out the "market adjustments". - 250ish range is fine. We have two other vehicles in the family that are PHEVs so the Supercharger network is nice to have, not a must have. - Fully optioned, Bolt is $42K. That includes Supercruise, fancy stereo, upgraded seats, sunroof. - Performance is more than adequate. Rush hour commuting is either sitting in traffic, rolling in traffic, or basically going the speed limit. - Model 3 RWD is $43K. I live in a place it snows. FWD with snow tires is fine (AWD/4WD is not a hard requirement). RWD is less desirable (although wife says NO). Model 3 AWD is $54K to start. - Incentives : $7.5K Federal, $3.5K state, plus free EVSE, and some other incentives drop serious money off the price. - Insurance rates: I have one teen driver and soon another. Tesla insurance rates vs. Bolt insurance rates are significantly different. Also, regarding "the competition" -- when I was at the dealer putting in my order, there are signs for the electric versions of the Blazer, Equinox, and Silverado, on a new platform that offers quicker charging and more range. Ford is backed up on orders for the Mach-E, and can you tell me the last time you saw an ad for a Mercedes that wasn't electric? You'd think Mercedes had entirely given up on internal combustion and was instead only selling to attractive ladies who wanted electrified SUVs, based on all the TV ads they have been running. I've ridden and driven Teslas. They are nice. The acceleration is brisk. Some of the quality issues are probably overhyped, but another factor you didn't mention was Tesla's drop in Consumer Reports rankings, which was widely reported. Yes, cue the "CR only likes boring cars" or "CR is biased towards Toyota and Honda" comments, but plenty of people only like boring cars, and Toyota/Honda do a good job making well engineered, reliable, long-lasting quality cars (even if many are, well, boring). There have also been numerous Tesla recalls in the news this year, too, which can't help -- and yes, I know GM also recalls vehicles. So there's definitely some dirt getting on the halo, and plenty of competition on both the low and high end.
Are you me? Hah. I’ve been through the EV ringer too. Drove the tesla and couldn’t get my hands on a bolt. However, aren’t you worries about the super tiiiiiny issue of your car exploding and setting your house on fire and killing your family? (I’m holding out for the Blazer ev by the way).
@@baconbigbeats The batteries which could have the potential fire hazard have been recalled and replaced, and the root cause found. If you look at the numbers of potential cars affected it's ridiculously small. ICE car fires are far more common, to the point there are many more of them to where they do not make the news anymore. When I looked into it, there were more car fires in the US than Bolts than had been made. Not to mention well known design flaws where F-150s would catch fire if the master cylinder leaked onto their exhaust manifold. We have two electrified cars already, both PHEVs. I'd get another one but the Bolt EUV is really a screaming deal for what I need it for.
Why why why? No one is talking about battery life? Batteries can last 7 to 10 years, and then they either can't hold a charge or diminish from holding a charge significantly. 🤔 So people just get rid of the car before paying 20k for a new battery on a Tesla. People are offloading these older Tesla, and the market is becoming flooded. Like the housing market in 2008, when everyone offloaded their homes because the principal on the mortgage payments were due and nobody now could afford the payments. It is similar here as the market gets flooded with older EV, to many cars like there were too many houses, causing housing prices to drop dramatically, and in this case, Tesla.
The competition aspect you brought up is the most interesting to me. Made me wonder if this is similar to tech startups. A new/agile player enters the market to fill a need quickly. They do well for a bit. Maybe they start looking to other opportunities instead of focusing on their core products. The established brands catch up (this is where I think Tesla is in the story). The next steps are to innovate again to get back to the top or sell out to the established brands. It'll be interesting to see how it goes for Tesla
Common misconception. Tesla is by far the leader because they have secured the highest battery cell supply going forward which is crucial to ramping EVs. Plus Tesla has the most advanced manufacturing processes (GigaPress etc) that has lowered the production costs resulting in the highest margins. So no one is catching them anytime soon.
Tesla wont be selling out to established brands any time soon if that's what you thought me be a possibility. Tesla's market value exceeds all established brands combined They simply cant afford to buy Tesla
@@blackvr4tt cell allocation agreements only last for so long though. I agree having supplies for production is imperative, but if competition grows, cell shortages increase, and someone outbids Tesla the Panasonics/LGs/Muratas/Samsungs/etc of the world will just sell to the highest bidder. I'm only saying that Tesla needs to keep advancing if they want to stay up, and that is something that applies to all businesses
Tesla just dropped the prices of their cars by like an average of 15% this week (not included in this video), the new ones that is. Other manufacturers are doing the same but might take some time!
You forgot to mention how former Tesla customers left the brand because of the HORRIBLE customer service & car repair service. We were a 2-Tesla vehicle household who just had enough of their uppity attitude in dealing with customers and how they handle servicing those cars!
I agree in general with everything. However the only one that matters is competition. The drop in price is because of the Federal Tax Credit. If you build a Model Y now, LR only with minimal option, it meets the 55k limit for a 5 seater. If they didn't lower the price they'd see more drops because loads of other small crossovers would eat up that credit.
In Scandinavia they are still some of the best value EVs especially at these new prices. The build quality on the Shanghai/Berlin vehicles is pretty good and competitors often cost more when factoring in equipment such as adaptive cruise, heated and power steering wheel and seats, glass roof etc which are standard on all Teslas. Sadly most of the "real" competiton such as Nio, Rivian and Lucid won't arrive here for a long time.
I think there has also been a sort of disconnect between the automotive press and car buyers. I think journalists have wanted a "model 3 killer" to arrive and shake up the landscape, so anything that has came close has garnered maybe unfairly generous reviews. Cars like the Kia ev6, polestar 2, it, etc are all very good EVs, but on the whole are beaten out by the model 3 in either price, range or featureset. However, journalists don't want to recommend the model 3/y for the 5th year in a row, so point consumers in the direction of one of these cars instead. (I think it's also worth noting I'm not a Tesla owner or fanboy, I just find this search for the new hotness stupid)
That's because they're made in China at lower cost, Tesla has no dealerships to support or offload supply to, competition has been growing in these nations putting pressure on Tesla's prices, Tesla supplies the most units, and Tesla cannot carry inventory at the end of quarters without making their financials look terrible, so if demand wanes or if there's new competition, they have no choice but to rapidly reduce prices below competitor pricing to clear out inventory. With Scandinavian countries offering lucrative incentives to buy EVs, it's a pretty sure fire place to offload their inventories. Especially Norway, who's had some of, if not thee most lucrative EV incentives in the world. To add, Tesla's only able to produce the volume of vehicles they do and only able to continuously grow production every quarter as they do by over ordering every battery cell that they can from their suppliers, and thus needs to keep increasing vehicle production. They have no choice. If Tesla isn't able to offload all of their vehicle inventory and has to slow down production at any time, it could lead to a massive build in battery cell inventory that they can never catch up on, with ever growing battery shipments coming in every quarter, as I imagine their contracts with suppliers dictates. The irony is that Tesla's massive cell orders have caused cell supply constraints for other OEMs who simply aren't able to increase production due to a lack of available cells to buy, and those they can buy are more expensive due to Tesla creating huge cell demand. (Tesla gets a discount for huge consistent orders, but it drives the cell pricing up for everyone else competing for the remaining capacity) Everyone touts Tesla, claiming they stand alone in the motivation to increase supply of BEVs while attacking other OEMs as dragging their feet... but in reality, the two are tied together. It's actually due to Tesla's rapid production growth that's restricting other OEMs from growing as fast. Tesla is just buying up all the world's available battery cell capacity, and starving other OEMs of cells. In other words, the total output of BEVs is cell supply restricted, and it doesn't matter who's building the BEVs, there's only a limited number of BEVs that can produced per year and we're already up against that limit. But this is coming to a head. Tesla is still buying the vast majority of their cells from suppliers and just getting started building their own cell lines, while currently just about every other major OEM is building their own cell facilities where they partially own the production. Tesla's currently working on two of their own battery cell plants with a third in development in Germany. Meanwhile, the other OEMs are in the development or construction stages of about 40+ battery plants between the US and Europe alone. And that's not even considering the Chinese competition. BYD builds their own cells and has quickly surpassed Tesla's growth rate.. and they're not dealing with the extra cost of paying a third party supplier for all of their cells like Tesla is. The real kicker will be if Europe moves to protect their own local vehicle manufacturing by implementing new tariffs on Chinese imports; of which Tesla is the main benefactor today. Before Tesla, there were no brands mass importing vehicles into Europe from China. Tesla was really the first company to do it, and maybe European officials let it go because of their drive to electrify... but I imagine it's already starting to hurt their local economy. Chinese imports not only create a trade deficit for Europe with all of the revenue being sent off continent, but as a result of the lower wage labor utilized in China and less of the purchase revenue going to the workers, it also creates a major transfer of wealth upwards from the European customers to the ultra wealthy executives and shareholders. Or did we all think Tesla's profits and gross vehicle margins just appeared with magic? As soon as Tesla started production in China and exports to Europe, so too did their margins start rapidly increasing. It wasn't the only reason, US price increases and the introduction of the model S plaid certainly helped, but it was definitely a big reason. In case anyone's wondering, the US has a 27.5% tariff on all Chinese vehicle imports. They also have a 7.5% tariff on Chinese battery cell imports, but Tesla still deems the LFP cells worth importing (used in the model 3 RWD). However, the new EV tax credit won't give a credit for those cells, so the model 3 RWD will, at most, qualify for only half the EV tax credit once the rules are enforced. Supposedly in April. If Europe adds tariffs to Chinese imports or worse, then Tesla won't have the US as another market to ship their Chinese made cars too. Now we'll just have to see if Europe steps up and does the correct thing for their economy.
This was expected, what Doug is saying is true. Other brands are catching up especially bmw, Hyundai etc.... inventory at dealerships is catching up as well. I believe not only Tesla but other brands will get affected aswell in the future. The interest rates are also insane, financing a car nowadays it's not a very good idea.
I got my Model Y in Iceland December 22. Teslas were not depreciating at that time and holding value very well. Delivery time was 1-3 months. From what I know cars where not often "available now" ie. someone decided not to take delivery. When I came in to Tesla Iceland I could choose from 2 cars. A few hours later I was offered yet another car (which bought). Thinking back this is very suspicious especially since the car was about to increase about $4000 in price in the new year because of tax changes. So now I'm thinking - who knew about this? Did Tesla Iceland tell friends to not to take delivery and they then passed the cars on to suckers (me)? This feels like a sort of insider trading thing. I can not see any difference in selling company stock you know for a fact is going to decrease in value and selling a car that you know is going to (abnormally) depreciate in value. Legally it seems to be different but ethically I can not see a difference. I suspect why this is legal and insider trading is not is that insider trading affects people that have money and power. A new car is for most people the second most expensive thing they will buy. Besides the money I feel I got robbed of the joy of getting and owning a new car. I like the car but I also hate it. Anyway my blood will stop boiling at some point but I find it very unlikely that I'll buy another Tesla.
In the moment you were happy to buy the car at that price, period. You let a price movement affect your emotions? So if the price had gone up after you bought your car you'd be all happy that you beat it but since it went the other way you're sad...that's dumb.
Doug, I'm concerned, are you going to have to re-arrange your entire license plate wall if you get a plate with the number 23? Or are you going to just put it on top of one of the extra 22's?
They are just to boring now. I feel most people don’t want everything inside the screen too. Most people want buttons. It’s so much faster and easy to access while driving. Also not having a driving cluster in front of you is a huge shock to most people. How hard can it be to add a cluster? And modify the looks every 5-6 years
The main reason why i wanted a Tesla was for autopilot but now that Hyundai has highway lane assist, i dont have to deal with Tesla's terrible customer service or poor quality vehicles anymore.
Plaid owner here and have to say service has been horrible. 10k miles and already replacing motor (left me stranded in middle of road), falcon doors repair 3x, dirty beat up loaner cars, overall crappy experience for a $140k car!
In Belgium there were more than 200 Tesla for sale on a website before COVID. Then it went down super hard. And now in just a few months this number went up to 430
In Finland it is even more nuts. There are more than a 1000 Teslas for sale in the most popular car listing website. For comparison the most popular make (still Toyota) has 6200 cars listed. There are still like 15000 Toyotas sold yearly in Finland where as with new Teslas the number is like ~1000. For Finland especially the 2nd hand market for Teslas went totally nuts during COVID.
There’s a couple of points that you missed. 1. Abysmal build quality both in general and for its price point (and no, its performance isn’t suffice to compensate for its build quality) 2. Reliability issues, epically for the Model X, Model Y, and Older Model S
The dull design is a turn-off. Some people don't want stark minimalism and everything on a touch screen. Proprietary connectors are also a factor. Then there's the rabid fanbase that refuses to admit any criticism of Tesla. Ford and GM and Mercedes-Benz have been making cars for a long time and have figured out what customers want and how to build cars. Even Kia and Hyundai have figured out build quality.
Overpriced piece of junk. The company won't survive past 5 years. They are now being crushed in China and this will just get worse, in Europe and US. People like to say I love my Tesla but 50% of Tesla owners don't go back to Tesla. 20% of Californians Tesla owners would not buy another Tesla. The hype is over
@@bwofficial1776 I totally agree with your point on it’s dull design and stark minimalism. I’ve always hated stark minimalism as a interior style and it’s probably the worst car trend to surface recently imo
Doug excellent commentary as usual one thing that also is causing the price to drop is the new federal EV tax credit on new vehicles. Now that all new Tesla 3s and Ys qualify
Did it drop? or is it null and void now? I think government incentives on EVs is ludicrous. Making me, who can't afford a new vehicle, or even a NEWER vehicle, pay for a rich person who can afford to buy a new vehicle via taxation. Up here in Soviet Canada we have carbon taxes.....that again is making people like me who can't afford a house pay to replace the furnace and windows for a house owned by someone who can. I mean, what's next? Making me pay for rich people to eat vegetarian?
@@muskokamike127 Oh, a rare specimen you are. A NA citizen that seems to understand that company driven politicians on both sides are screwing you over. Or maybe you think one side doesn’t do it? If that’s the case good luck 😅 But if you understand the real issue you might want to check what Andrew Yang proposed to get special interest money out of politics. In my country (Germany) we are doing what he proposed. Not perfect but better than the US in every way. Don’t know about Canada though.
Some years ago Tesla was the new cool kid in town. Driving a Tesla made you stand out as an early adaptor. Not so much anymore... Anyone and everyone drives Tesla, it has become a standard product.
Covid definitely had an effect. Inflation and how everything was up made used Teslas incredibly overpriced. This happened in the sneaker market where people were flipping shoes for insane profits than pre-covid. Now prices are starting to fall back down to pre-covid days.
Doug , you ,missed on a few points. The economy. As a street smart investor I have noticed a shift in consumer buying. Basically people are holding their money. And then the popularity of the product has toped out. Again just the norm. A smart move would be too wait for the China crunch which is coming. Then the long term effect on Russia related to its war cost. Europe is heading into a crunch on the pound and the euro. Prices can only drop even more. Interest rates will rise and maintain for the next three yrs at least. Im not looking thru the eyes of a used car dealer. Only as an investor. Not pretty.
Missed one reason. I know more than a few people that own, or have owned, Teslas that are very dissatisfied with their customer servise at their shops when something needs to be repaired. From what I have heard this is something that goes for most of the countries Teslas are sold in. Here in Norway they have been the bottom brand several years when car owner are asked to judge their cars and the retailers and shops. People notice this and choose other brands instead.
Yeah, in some areas they are ALL OVER. And they all pretty much look the same to the average person. They're as hip as prius' now. The trendy stuff of setting the turn signal to make a fart noise, or making the horn moo is no longer "fresh". There are vastly better options with wildly better interiors that are actually interesting to look at and be in.
That's exactly what Doug said himself in video several months ago: "People keep asking me why I don't have a Tesla. I really think they are great cars. But apart from my personal recharging-situation it's really because they've gotten very common around here! And I do pride myself having special cars in my kind of way. They don't have to be flashy, but there should be something special about them." (Quoted more or less accurate 🤣).
Yeah, I looked at used Model 3s after Tesla price cuts and was astonished how big the price cuts were. Even more compelling than the price cut + federal incentives. Some really good points you made here Doug. Thanks!
So many people bring up the Tesla federal tax cut. How many of those people owe 7k at the end of the year and could even capture that write off? Most can’t
@@CurieBohr I'm sure those buying a tesla could, or close to it. Got to look at how much of your paycheck is going to taxes vs what your normally get back.
Single largest factor is the fact that supply is catching up with demand. His quantities out of his new factories have greatly increased the number of cars available. It's no longer a rare unique thing as I see Tesla vehicles everywhere now. He's run out of trend followers, but he has plenty of rank and file masses that currently drive regular internal combustion engines that may be ready to switch as long as somebody fixes the charging station problem. It's time for filling stations to convert to charge stations.
Gas stations converting to charging stations is mostly not really going to happen, they're mostly just going to go out of business. There's a few good reasons for that, the biggest being day to day use charging isn't going to happen at a place dedicated to charging, it's going to happen at home. Why would I go to a store to charge when my car is charged up every morning? For homeowners, it's easy to put in a EVSE, I installed mine myself because it's not hard to add a breaker to the panel and run a few wires. Apartments are already starting to put them in their parking lots. No, fast charging is for road trips. And since it's going to take a bit longer than a gas fill-up, a convenience store isn't really the right type of business to have them, they really should go in places like shopping centers near restaurants. If you're going to be waiting on a charge, might as well grab a quick meal and not just some crappy snacks.
I personally think that people have started to notice the build quality as Tesla has had products on the market for a reasonable amount of time (over a decade). Now people are realising they don't have the longevity other manufacturers do...
Yes I think the rise of Interest rates is a big factor here in SC most people have mentioned that the rates have changed everything, also the high cost of their product, again waiting for the Cybertruck.
Doug is completely right about many Tesla buyers working in real estate, and many other bubble occupations. I can’t believe that I didn’t realize this, but everyone I know with a Tesla works in 1 of those bubble industries that’s falling back to earth
Awesome info and diplomatically presented. I really like when someone can talk on a very touchy topic with a rabid fanbase and cover it without causing a storm.
It’s not just Tesla it’s all electric cars I couldn’t believe when I saw a 2022 Audi RS etron gt the other day for $120k with only 1700 miles the thing literally had a 37k depreciation just from someone driving it 1700 miles which is ridiculous
I for a while really wanted to get a Tesla, but as of this year, I've realized that that is no longer the case, mostly due to seeing all the poor quality assurance videos regarding their cars.
I'll be waiting for Toyota in the future when my gas car is old enough to get replaced or go for 2 seater Aptera which is more economical, have more range and cheaper to buy in 2-3 years.
In Europe, the price of electricity has increased by a factor of 6-8 depending on country, which I think is the most significant reason in Europe at least. During the most expensive periods, like dec and sep/oct, regular cars were actually quite a bit cheaper to use than electric cars. With no end of the war in sight and a general lack of energy in most of Europe, it would be a gamble to buy an electric car now.
Depends, energy prices are dropping and you can fix your rates for at least a year. Plus if you have enough solar panels you're able to drive most on solar energy on daily commutes.. I got an electricity-only home with a decent surplus in solar energy, which goes to waste back to the grid anyway. Electric cars are not that of a silly thought
Fascinating. Please keep us up to date, Tesla users are furious with the price cuts. I dont think they have ever seen a new EDIT: Any ice car depreciate so much so quickly before.
i have a kia.... it depreciated like most any other car.... but they dont depreciate like fords or chevys do.. at least not anymore. in the old nineties kias depreciated just by looking at them.... but today i think hyundai/kia cars are the ones to beat. even their electrics are pretty good.
> Tesla users are furious with the price cuts. I read that it was especially bad in China. Many buyers are demanded rebates on their recent purchases. The price drop has clearly been too much, too fast for the market to absorb. Yet, it will continue. It is not a good time to buy a Tesla. And, until the good times return, the prices will continue to drop. I believe it would serve Tesla well if Elon would sell the company so that it would have new management; under someone will extensive automotive experience. I can envision several of the large companies being interested in buying Tesla if the price was inline with the book value of the company. A large premium, they would not pay. That would also allow Elon to focus on his new, pet project. Tesla is experiencing too many recalls, too poor workmanship (fit and finish, for sure), and a sharp decline in consumer confidence.
@@nickyalousakis3851 That makes sense. i considered a Kia car hunting a month ago but the engine recall pushed me off for now. Will see how it is in a few years. I do feel bad for who ever is buying the $105k escalades today.
@@davidk4112 I bought the Stinger - red - love it. i didn't get a recall.... i guess maybe one in particular engine has a problem? who knows. so far loving the car. we'l see as time goes on.
Rocketing high inflation worldwide = less purchases on products that are nonessential, to buy new you must get rid of one, used haven't been selling...
I have one coworker and one friend that canceled their Tesla orders because of Elon Musk. And I live in Texas. One went with a non electric Audi and one went with a Hyundai Ioniq 5.
I have a coworker that got a Tesla because of Elon’s more conservative view points. Also, my dad who’s pretty conservative and hated electric cars all of the sudden loves Tesla. …so I suppose it goes both ways. Funny how our culture no longer respects different view points and instead we choose to alienate ourselves into our own little clans 🤔
@@ESUNintel On dating websites, the percentage of those on the left who say that they refuse to date anyone on the right is a considerably higher percentage than those on the right who indicated the same about those on the left. Think of how far gone a person has to be to boycott a company because that company didn't continue to aggressively censor opinions that you don't like or can't argue against so just want to disappear. Cue sesame street music: "One of these groups is not like the other"
@@ESUNintel I agree. It works both ways. I don’t see it as alienating themselves into a bubble. Choosing not to spend their money with a company who’s values don’t align with theirs isn’t alienating . They’re supporting a different company and Tesla clearly realizes that or they wouldn’t have slashed prices. As he said in the video, there’s a lot more competition and the designs are old, but they’re seeing Elons words are affecting their sales so they’re slashing prices on the new cars.
I ordered a Tesla and waited from April 2022 to September 2022 and the date kept getting pushed out. I finally found a Mustang Mach E and bought it! - now Tesla calls me to see if I want a car, but they will not credit me for the $250 deposit they kept from April. Not a very smart policy so I passed!
Thanks, here in the UK, white model 3s are very common, they are often company cars used with high mileages, there are huge tax benefits for the employee to drive an EV. Now there is so much more choice, the Teslas are looking dated and boring, and we love our German BMw, Audi, Mercs etc. Kia and Hyundai are making some superb EVs. The supercharger network is still a huge advantage, but it is steadily being eroded, with new multipoint hubs appearing everywhere. So in my opinion the competition has caught up and taking its share.
Absolutely not,even the next best electric car is a generation behind Tesla. That’s why evs from bmw etc have to put so much unnecessary pomp into their cars.
As you mentioned, there are a lot of viable competitors to the Tesla now. So even though you're talking about used Teslas, a lot of folks looking at a used Tesla might consider a new car from a competitor.
@@driver4011 do those have autopilot? that's big for me, driving long distances on highway is boring and unnecessary. the car should be able to do that for you
@@elemenop718 then you should get a Mercedes. Their new system surpassed tesla's in nearly every point, especially after tesla got cheap on the sensors. Check youtube, there are multiple videos of it. And an EQS is jn the same price range as an model s, the EQE might be comparable to the Y in price, but that i don't now, the EQS is the one for me (test drove the S and the EQS ans then decided)
I won’t be looking to get a new car myself for at least another 5 years, but as much as I really like and have interest in other EVs, especially the Hyundai/Kia, I just wouldn’t actually consider any non-Tesla strictly because of the charging network. It simply is not there quite yet. It’s getting close, but at the moment I don’t think it’s much of a debate. Hopefully when I’m in the market it will be more comparable and I’ll have more of a decision to make
I don't know why anyone would want an electric car. You're going nowhere in a blackout and you never know when the grid will go down. Plus the battery is like 24 grand. When the battery goes the car is junk. Plus Tesla refuses to sell parts so you have to go to the dealer.
The main factors are major competition coming on line including many vehicles with more conservative interiors/styling and lower prices and the realization they don't work well in long cold winters plus no way to charge them durring major power outages.
Also, keep in mind, the new requirements for the federal tax credit of $7500 does require the pricing of the vehicles to be lower than Tesla is charging currently.
Tesla just dropped it's prices so now Model Y and Model 3 qualify. Model Y has effectively dropped $20k with the tax credit which is why they're getting a surge of orders
Did you not hear the big news? The dramatic price drops that Tesla has just implemented now make all Model 3s and most of the trims of the Model Y eligible for the tax credit.
It is interesting that this realization hasn't hit home here in Canada. Still seeing used Teslas offered for more than when they were purchased initially. Indeed many are more than what new order price or instant delivery price is.
@@grod805 Yes they have, we have virtually the same conditions as the US but a smaller market and less early availability and acceptance. Doug mentioned that in his car sale site he is still having people try to list at the inflated prices from a few months ago, we just seem to have more of those people.
The only reason to get a used 3 right now would be for the Long Range model since it hasn't been available to order a new one for a while now and still isn't. But the used are priced similar to new at the moment, and even the ready new have a couple hundred added on
Last year’s end of the year $7500 off sale event was like a trap for people to fall in to. I feel sorry to those who bought their MY that time, now seeing their cars’ value dropped significantly just in 2 weeks. 😢
Also, another minor factor may be the increased media attention on Tesla fires. I’m not sure if Teslas are catching fire at a higher rate than other EVs but they’re certainly getting more media attention.
"Autopilot" malfunctions actually lead to fatalities. Plus cars have a huge trust factor in them. If you don't feel like the company is committed to the thing that increases the chance of death the most, then you won't take the financial burden for it.
It’s drivers not paying attention that have led to accidents and fatalities, not Autopilot. Autopilot is there to take care of the menial tasks of driving. Not to be autonomous. I’ve owned my Tesla for 4 years, and have used Autopilot a lot. I do not start playing on my phone, or whatever other distraction. When the car gets “confused” I take over. It’s not that difficult. The problem is the people that put an orange, or other things in the steering wheel to give it enough resistance that the car thinks someone’s hand is on the wheel. Also, look how many I.C.E. vehicles have caught on fire. The media doesn’t report on “regular” car fires. But EVERY Tesla that does (which is very few of them) they make headlines.
@@baseballzeus7894which would be all well and good, but Tesla market thier autopilot as full self driving. They very much said that you could set it and forget it, which is where I would say the problem is. The autopilot feature isn't bad, but it was marketed dishonestly and on bad faith. By convincing people that it could do more than it was capable of, people got complacent, and got hurt
Should we expect prices on EVs from other companies to decrease, as well, because of the supply issues starting to relax? Ioniq and EV6 are looking great.
I don't think that's happening anytime soon. Tesla has the production locked in while the other companies are still figuring it out and trying to make a profit. I believe Elon recently said he's ok with breaking even this year as long as he can push out volume. Don't think any other car maker can say that.
@@PsychItsMike You speak from what knowledge source madam ? Locked in ? Doug just told you (& he apparently knows a bit about all car stuff yeah?) the Tesla models are old already , not just locked in but stagnating you Musk lover … & sunshine News flash !!! Every car manufacturer has had numerous models where they had to cut even. Hell many have outright lost money on some of their best models. Don’t try sell corn as you obviously are not a corn farmer … Trust me, the Tesla Hype has simply started to show… Another few years an Elon fanboys like you will be very shocked !
As a long time Tesla fan (2016) I completely agree with every point made. Tesla has been in the fortunate position of not needing to come out with new models or innovate much because demand was so high. Now that demand is slowing, I'm expecting to see more price cuts, more innovation, and likely the unveiling of a lower cost Tesla to be more competitive and increase sales volume.
I agree 100%, I feel like since they announced cybertruck they just kept their head down and focused on completing gigafactories and expanding current production instead of innovating tech, but thats not mentioning the new 4680 cells and full body casting
@@SL1NGSHOT222999 Are you kidding? Tesla spends the most R&D and least in advertising per car sold BY FAR. They are constantly updating their tech on each production rollout....they don't wait for the next year.
Boy that's a lot of good, unsubstantiated and completely anecdotal guesses Doug. You really think that there are SO many investment brokers and mortgage lenders own Teslas that they'd sway national/international Teslas prices? This screams "I live in a neighborhood with rich people and they drive Teslas so obviously this is how it is everywhere".
Agree with nearly everything Doug. I think you understated how many of Tesla's customers were reaching to buy their cars (especially at the old prices). I certainly count myself in that crowd as a model 3 owner (bought in 2020). I would never have spent that much on any other car, especially since here in Canada the supercharger network is still massively ahead of CCS. Even with the CCS deficit here I don't think I will replace my model 3 with another Tesla when the time comes, though I do like my car. Also think you missed a big factor in why the waiting list has gone away. Tesla has ramped up production in Texas, Germany, and China, so they can simply make more vehicles now. Pre-covid they were already supply/production constrained and the pandemic only made it worse. I think Tesla found the limits of their demand in pricing and production simultaneously. On the innovation front I do agree they are in serious need of a facelift/refresh, but it's worth noting Tesla has been busy hyper-optimizing their production process so it's far cheaper to build their cars now than it was upon model 3/Y introduction. A few years ago Tesla production was a giant mess, now they have leapt ahead of the rest of the industry in certain ways (though the paint remains dreadful). 4680 batteries and massive single castings (among other things) are true innovations unique to Tesla, you just can't see them from the outside. I do agree Cybertruck has been an unmitigated disaster.
All the nonsense about Tesla's poor quality on the internet is on the same level as Harley Davidson is going out of business. LOL Total rubbish by people who have never driven a Tesla!
Finally someone who has a more detailed understanding of Tesla. The competition advantage with production cost and efficiency is huge. In terms of paint, it's improved at Fremont but is excellent at all their other factories. Cybertruck has a huge waiting list and will be a big profit driver as it ramps into 2024 and forward
Yeah I was just speaking to a detail shop here in SoCal who said that Teslas were the main reason they kept their doors open doing ppf etc over the past couple years…because Teslas were the only carmaker still producing and selling, or even increasing sales of new cars, while it was used cars that went crazy for every other brand (and you’re less likely to ppf a used car). Stop and think about that, Tesla did so well to keep production up when no one else could it had knock on effects on the broader auto business ecosystem. Hope Doug reads these comments bc I do think his video was incomplete in a few ways.
My mom wanted a new EV. She didn’t buy a Tesla because she dislikes Elon and wasn’t impressed by the quality. The competition just does better in quality department.
Why doesn't your mom like Elon? Is it related to Doug's first point? People think he's crazy after the Twitter purchase? All he did to "earn" the crazy moniker was release information revealing the collusion between Big Tech and the US Government to suppress individual First Amendment rights. I guess that just goes to show the power of The Narrative(tm) and how the legacy media carries water for the DNC.
@@user-hc7ry8qp9o lol mainstream media has just been glorify Elon for years. Elon fans are some of the dumbest people without a shred of critical thinking.
I'm in France and the huge price swings of new teslas makes it really hard to price second hand ones. The Stadard Range model 3 went from 50k€ to under 40k€. A lot of people were trying to flip their model 3 to get a model Y too. I've seen adds for 2021 model 3 drop from 37k€ to 30k€ because of the price drop for new cars. Same time last year I could have sold my model 3 for 0 loss and 30k miles on the car.
I just leased a 2023 BMW hybrid, I was going Tesla this time but Mr Musk factor turn me off, idk if a major factor for most people, but a 100% in my case
Forgot the Semi - that was just dropped into the commercial market and is innovative. They were finishing the semi to use the motor in the cybertruck. They have been just focused on the commercial market for a couple years to get the Semi out.
I think you are correct Doug on the interest rate. I also believe that the EV competition from other car manufacturers which provides more selections rather than Telsa is also a factor!
@@fortheloveofnoise Define "cooler" certainly not in the tech or software, Kia and Hyundai are massively inferior in that respect. Both of the "cooler" cars you mentioned having boring, busy and predictable interiors.
Doug, you made some good points but missed some other major ones. Tesla used car prices were abnormally high during and after covid due to short supply as you mentioned. But the prices are coming back to normal for a couple of reasons. First is production volume is higher (as you mentioned), but also the 4th quarter was an expected demand pocket because ppl were waiting to for the $7500 tax credit that started in the New Year. So ppl were holding off buying In general, and higher interest rates added to that. But let's keep some perspective, Tesla is still #1 by far in the US with 2/3 of all EV sales. The Model 3 & Y are true sports sedans/ crossovers with great acceleration, handling, steering and braking. The Performance models are especially fun to drive. Plus Teslas also have the highest safety and crash test scores in the industry (most ppl don't realize that)....and obviously they have excellent tech that keeps getting better with updates. Finally the Supercharger network is a huge competitive advantage because it's reliable and seamless. So overall Tesla is still in a strong position and will be selling close to 2 million cars this year globally. That's without the Cybertruck that has a huge waiting list.
Yes, The $7,500 tax credit is huge. This will force used prices down by ~$7,500 automatically (plusTesla recently dramatically lowered prices as well). With the federal tax credit, the base Model 3 is now $36,500! The base Model 3 Performance is $46,500
Most people don't buy cars for "fun" factor. So yeah acceleration, handling, etc. Only appeals to enthusiast, and in any industry enthusiasts are always a minority. At this point, all enthusiasts already most likely own Teslas. Also remember, every manufacturer have their loyal customers, and now all the major manufacturers offer really compelling EV options. So Tesla is going to be stealing less and less marketshare from competitors, compared to a few years back when Tesla was pretty much the only real choice for EVs for anyone who didn't want a Nissan Leaf. What's happening to Tesla is normal for any first mover in any industry. The points Doug raised and the ones I mentioned above are also why even the stock price is falling to in my opinion it's true or normal value. Investors are finally acknowledging the absurd valuation.
@@sorinelpustiu5674 I think you are mistaken. Tesla already dominates the EV world, but their dominance is reducing. Look at the EV marketshare numbers over the past few years. And again that's normal in any industry. Same thing is happening to Netflix in the streaming industry, and it happened to Facebook in the social media industry. Multiple examples in the consumer electronics industry
I cancelled my Cybertruck pre-order due to better, cheaper options that are available now. Other auto manufacturers are catching up and surpassing Tesla in their electric offerings.
Just find a body style you like and have evwest* I think they're called electrify it for ya. Imo electric vehicles shouldn't be available to the general public. They all can be made way too powerful, too heavy, and the average motorist is much less attentive. And they're not better for the environment than just maintaining a normal car for it's lifetime.
I agree but I think competition catching up has a bigger factor than anything. In my opinion the Ioniq 5 is a better car all around compared to a model 3 or Y. It charges faster and has more things that non tech savvy people are going put in front of all else.
It's probably the only possible competition Tesla has, but in the marketplace there will still be 10 Tesla's sold for every ioniq available on dealer lots with markups.
I agree. The only problem with Ioniq5 is that it's made and sold by Hyundai (big problem). And the EV6 is made and sold by Kia. Not good things in their favor. But better vehicles than the Teslas? For sure! Would I still buy an EV6 or Ioniq5 over a Model 3 or Y? yep, not even a contest... Hyundai or Musk? That's like Hillary vs. Trump. I'd hold my nose and pick Hyundai for a BEV.
In the automotive market, you don't need to be the pioneer, being a fast follower is also very lucrative. Korea also has been funding electric cars for some time, and Hyundai and Kia have a far bigger distribution network - worldwide. The first to give away wallboxes will win...
I think some of it is market saturation. EV's are starting to become more and more mainstream, so as their availability becomes more accessible to "everyday people" the value will decline as there is more market competition.
@@flavioa6351 ICE cars will be around for a long, long time. I do think electric is the future, but it's not going to be as fast as people think. Change takes time.
@@JamesPSmith1980 You just need to look at the age of the current car fleet to see what that will be, there's lots of 15 year old cars still, far fewer 20 year old cars, and very sparse 25+ year old cars. So, if the last new ICEs get sold in 2035, I think there will still be a pretty sizable population of them in 2050, but in 2060 they will be a pretty sparse sight. To a point I think better and better EV offerings over time could lead to a slightly premature retiring of a lot of vehicles, so the effective end of the line could be well before 2060.
Competition... everyone makes an EV now and some are "better"? No longer do you have to settle on a 4dr sedan with Tesla. You can get SUVs or Trucks or even a sedan but with a different manufacturer and cheaper.
I think the Musk factor is huge. I've thought he was a jerk for years (since he said we were all going to Mars and would be sending our cars out at night to act as "Robotaxis"). 2022 was the year when it finally dawned on the masses. There is huge animosity to the brand out there now (especially among his key customer base, as you rightly point out). Tesla could stil make it, but they need to get rid of Musk urgently.
Spot on. People are so gullible, but the pendulum is swinging too far the other way as well. TESLA will be fine because of their basic engineering and control of supply, but they were really over hyped then, but now I feel Musk is over panned.
Same reason as with the broncos... People were buying them and flipping them. I believe there is a waiting list for rivians, which will drive up prices for people who want one NOW.
Cheapest Tesla within 200 miles of me is $32,000. I guess that's good. When I got my Bolt the cheapest I could find was $25k. Last time I looked they were $40k. Got my 2017 Bolt Premier for $15k back at the end of 2019 and have loved it so far.
I think a video titled "So you're thinking about replacing your Tesla..." would do really well. I'm coming up on 100k miles on my 2018 3P and I have no idea what cars are better in terms of performance, driver assist, and overall tech. Especially for the same price range.
I am at 129k on my 2017 S 100D which I bought new. Two door handles and one suspension airbag replaced in that time. Range within 4% of original and see no need to change. Legacy makers have lots of interior luxury but rubbish range/huge cost and no Supercharger network. And in the Summer charge my card for free from Solar Panels.
I just bought a Tesla Y and love it. The software that operates the car is amazing and the comfort and drive-ability is fantastic. No buyer's remorse here.
@@adventurer3645 The battery is warrantied for 8 years and expected to last at least 10. I don't think many Model Y buyers will keep their vehicles for 10 years, something shinier and newer will arrive before then.
Key words "just bought". Not to rain on your parade, but next time you buy an expensive car you should explore other options first. The germans really know what theyre doing for instance.
Mind blowing that Doug filmed this before Tesla slashed prices. If the market for used Tesla's had already crashed, what do we call what's going to happen in the next few days and months?
Well put Doug, and I agree with all but would not downplay the importance of the supercharger network. Tesla is the only EV I would travel long distance with today, hopefully that changes in the future.
I don't know how much it effects but maybe people have started to notice the build quality and cost cutting that Tesla has done. It wasn't long ago when videos started circulating about a performance model not having Brembo brakes at the rear anymore, only a bolt on Tesla branded plate on top of a smaller cheaper brake caliper and smaller rear discs.
Note that I filmed this video on Monday, before Tesla's announcement this week that they're significantly cutting prices on all their new models -- a move that will only further serve to significantly reduce the value of used Teslas.
Noted Doug. Thanks :)
I feel like I should have soold mine when it was worth a lot!
TOYOTA SUPRA IS GOD
That still impacts retail/trade-in negatively
Burger 🍔
I think there's also a fifth point: Increase used car supply due to 3 year lease returns. The Model 3 came out as a 2018 model year, but in the beginning production rates were really low so not a lot were made/sold. We are at the point where a decent supply of leases are expiring.
You are partially correct but US sales actually decreased in 2019 because they began exporting from Fremont.
And all rentals that have been available for a while now are constantly reaching the mileage limits. Another source of the recent influx.
@@JayMcKinsey us sales have been increasing quarter for quarter since then
And another one : prices of new cars are being reduced so logically it's less interesting to buy a used one
@@KCJbomberFTW US sales rebounded in 2020 but those vehicles have only been coming off lease for two weeks.
Love when Doug’s inner economist shows - more analysis like this in the future please.
I second this!
What stonk to buy??? 🤣🤣
Great analysis.
He does have Teslas to sell but his analysis is sound and he does say his Cars & Bids sells them. I found this very interesting.
Find it crazy he said Elon has positioned himself as a conservative. Guy is anything but. He grew too power with leftist ideals and financial backing. Other then free speech, which I personally know multiple leftists that support free speech. What would make him conservative? People have gone very very far left. The ‘right’ is so broad now ppl include Elon musk and Alwx Jones as allies 😂 do ppl not see this cult of mind thinking from the left? Either your completely onboard or your an enemy, to the point Doug believes it effected the value of his cars. I don’t really lean either way jus found this odd.
You know what's a huge deal breaker for me? the freaking enormous repairing prices on any random thing like a door handle compared with a "normal" car. Not to mention the fact that as a car guy, I would like to change some of the broken parts myself like a tail light for example, not be forced to go to their service. Fast acceleration and some gimmicks can't replace what some of us really want from a car.
I agree with you, I like doing my own work after the warranty is done.
Do you own one?
@@eddypan007 no, the closesti Tesla dealer is 731 miles away in the text contry from where I live. Imagine having to tow your car that distance each time you have a problem with it. Besides that, to be honest, it cost more that I am willing to pay for a daily driver.
@michael h have no ideea to be honest, but I don't remember seeing one in my city
I mean gas cars in the same price range have similar cost for things like door handles tbh.
In Australia they dropped about 10% in the past 3 months as I've been following the prices closely. I also happened to test drive a model 3 in early Dec and I've asked for their prices of pre-owned 2021 and up, and the guy said the cheapest one they have is $67k aud. To which I said 'no thanks because online they are $10k cheaper'. He almost fell off his chair and immediately went to check for himself lol. But since then the same cars I saw 6 weeks ago are still for sale and they are dropping even more.
The cheapest l've seen New Model 3 in Oz was $59,999 about 2 years ago.
We're NOT there YET.
Yeah Australia definitely still seems quite affected by the waiting lists for most major cars than other markets. Pretty much all the popular vehicles still have long wait lists.
@@fifafanatic24unfortunately I think we can also add blame to the fact we are a RHD market. Most major Automakers don’t prioritise RHD production
Over here in the UK the 2021 model 3 is around £24k, the prices have dropped by 40% over the last 6-8 weeks alone.
@@proarcher6438 We are RHD in the UK too, but we now have zero waiting on new Teslas, so you can drive them away the same day, this is why the used prices have crashed, also the £8k discount is nice, meaning you can pick up a 23 Y for £42k now. I don't know how much that is in oz money...
Here in Britain, electricity prices have skyrocketed (about 42 US cents per kWh) making EVs less attractive compared to gas , plus in the 22/23 winter there was a lot of press coverage of long queues at the small number of Supercharger sites as Tesla range fell in the cold weather.
The charging infrastructure in Britain just isn't ready for mass EV ownership, despite our utterly corrupt politicians banning sales of gas cars from 2030
Same in fricking Norway, corrupted and delusional politicians: especially the dumb green party.
Banning gas cars was the smart way forward that will decrease air pollution and health problems such as asthma, heart disease etc
Stop triggering virtue signaling environmentalists with logic 😂
Good point u never know whatll skyrocket electricity or gas ima bet both but one can skyrocket way above the other so own both types
I r a n can block the hormuz strait and ur gas prices skyrocket to 20 bux a gallon and electricity prices get brought up with it along with food inflation skyrocketing so 1 move the pretender in chief makes can be destructive
With the recent price cut, a new model 3 performance now can qualify for the $7500 federal tax credit + $4000 tax credit in NJ if you configure for less than $55k. That means a new model 3 performance with barely any wait list can be bought for $45k after fees including credits.
Edit: The NJ rebate is $2k for vehicle prices between $45k-55k and $4k for below $45k. It is offered point of sale.
Model 3 Performance is an awesome car and an incredible value at that price!
I think the model 3 performance specifically doesn’t qualify for the tax credit right?
Don’t forget no NJ sales tax on EVs. I’d buy one if I qualified for the tax credit.
This is going to destroy Mach e, polestar, id4, i4, etc sales.
That's not exactly how tax credits work
Edit: Credits do indeed work like this, I was thinking about deductions
Another factor you forgot to mention is the long list of service issue, delays and price gouging on repairs, replacement parts and bricking some used cars. This has a big effect on people looking for moderate ownership costs. Many other luxury cars drop like rocks from some of these issues.
This is one thing no one else is talking about, thank you.
I thought you didn't need to service EV'S🤣 I'll stick with my V6 is250 thanks
😮
Indeed; It's bad when a base model Honda Civic has better build quality and service than a car that's been perceived since it's inception as a luxury brand. And when simply getting noticed by Musk for bringing some of these problems to light results in your vehicles getting remote bricked, it makes one not want to purchase anything made by any company he runs. (See @RichRebuilds for a fantastic example of this.)
This is one thing. I live in an upscale mountain town and we have a lot of Teslas around here. Almost every one of them that I see has fairly obvious manufacturing defects. Uneven panel gaps, mis-aligned trim, funky paint. Consumer Reports owner surveys find the same sorts of problems, so it is not just my small sample. I'm not sure I'd want to buy a car with the build quality of a 1960's Detroit sled. Everyone else building BEV's knows how to build cars. Not so sure that Testa does.
The one thing that also has a big impact that you did not mention is the federal $7,500 tax credit and price cuts which makes all model 3 and most model Ys much cheaper. Examples: Dual Motor 5 seat model Y was 65,990 now 45,490. Model 3 Rear Wheel Drive was 46,990 now 36,490. Model 3 performance was 62,990 now 46,490. With these changes used car prices will continue to go down unless wait times for new models gets much longer again.
This is the biggest factor IMO. I don’t understand how Doug didn’t mention this. Everyone knew that new Teslas were dropping by $7500, so of course used car prices will drop proportionally.
@@UnibrowBandit "Note that I filmed this video on Monday, before Tesla's announcement this week that they're significantly cutting prices on all their new models -- a move that will only further serve to significantly reduce the value of used Teslas." - pinned comment
@@UnibrowBandit I don't understand how you didn't just read the pinned comment.
Am I not aware of another tax credit for fuel efficient autos? Tesla doesn't qualify for those anymore.
@@UnibrowBandit i dont understand how blind you two are lmao
You make a good point that when used model 3’s start hitting the $20k mark, that’s almost too good to pass up. It’s a lot of car for the money and that will have the effect of devaluing used Leaf’s, Bolt’s and other cheaper ev’s. I just got done with a 2021 Leaf SV with Pro-Pilot and it is no comparison to a model 3 in any way…these are listed in the high $20’s on dealer lots as comparison.
Exactly. Now gimme that 5k€ first-gen leaf.
Go ahead and buy a "cheap" tesla. Lol. Good luck bro
no shit its 10 grand less lol
Yeah i guess, if you don't mind a car that's built like a tin can.
Leafs will become $1k cars in due time.
This video was really fascinating! I’d love to see more auto market analysis videos from you in general. You bring a unique perspective and very good insights.
I had a Model Y on order. I let it drop for a number of reasons:
self driving doesn't work well enough and got worse after radar was removed.
the Fremont Y has a bent frame so body panels and doors don't fit and rattles and
squeaks cannot be fixed and there is no sign that Austin Ys will be available.
the value of the cars drops to zero after the 8 year drive train warranty runs out
because of the potential cost of replacement of battery, drive units etc.
I think the biggest factor that you mentioned is the waiting list. We've seen this same practice in the consumer technology market over the last few years. Low supply/high demand and waiting lists results in a large number of people purchasing the product with the intent on flipping it for profit. The manufacturer pushes to increase output but as long as this scenario holds true, it creates a positive feedback loop with rapidly increasing supply. Once one of the factors changes and demand drops you end up with a rapid swing of the pendulum back the other way, flippers are caught holding the bag, no one wants the products anymore, and there are a ton of them out there, over supply and under demand. Rapid price drops are the result.
I will add another factor: my 4 year old model 3 still costs $2000 for annual insurance. As new buyers become more informed, fewer and fewer people are willing to pay that kind of insurance - it effectively cancels out a big chunk of gas savings, if not all of it.
I know people who had that argument with neighbors before EVs, just over "gas mileage", who want to nag others into diving what they think they should drive. First of all, a new car is wasteful, compared to one you already own. Reuse, reduce, then recycle. Second, you can buy a lot of gasoline for the $30k (now 48k+), the more expensive repairs, the increased insurance, etc. Many people would save money even on big drive train repairs (the problem is just like the new car, they can't really afford it, but they get approved and continue to dig those financial holes.). Even worse, as the shortages have proven even if you're willing to pay, they aren't prepared to fix it. We live in a society where it's basically expected for a couple of bankruptcies over the course of a lifetime and it makes everything cost more for everybody.
That’s one of the reasons I’ve decided to keep my PHEV (2021 Rav4 Prime) instead of going to a fully electric vehicle. I was slightly thinking about going with a 2023 Model 3 Performance vehicle but made a list for keeping my Prime:
1) Yearly insurance cost
2) 600+ total mile range (fully charged and with a full tank of gas)
3) Real world EV range of around 45-48 miles depending on external conditions, which is enough for my daily commute needs.
4) Toyota reliability
5) Toyota build quality (Prime vehicles are made in Japan)
6) Ability to buy parts for my Prime without any issues
7) Ability to service my vehicle without having to worry about servicing time.
8) No run flats and having a spare tire in the back if I need it when I take a road trip.
I might give EV’s another serious look in the next decade when certain issues are addressed, but for this decade, I think PHEV might be the best comprise for people like me.
@@bipbop3121 it is sad, but we as a global society haven't learned the slightlest about dealing with our wastes, reusage and all that. Save a few tiny countries who have it figured out for the most part, the majority of nations have no clue about how to keep the whole system runing eficiently and as clean as posible. Just look at the waste left on the Everest which nobody is taken care of. People need to get fucked real good in their assholes and have their comfortable lives shaken to the core so then they might learn something useful for their next round if there's any new round at all.
@@paulira7407 I had no idea insurance for EVs is significantly higher. Is it for all of them? And why?
If you go with tesla provided insurance that you sign up for via the tesla app, insurance becomes significantly cheaper. Most of the new tesla buyers will end up going with tesla as the insurance provider. A win long term for Tesla. Doug didn’t mention this fact.
Another nice video Doug. We have a 2022 Model 3 and still love it, lol. You’re still right on with your assessment. We ordered ours 18 months ago and have had it for a year. As of today a new one is actually the same price we locked in on 18 months ago. It was a crazy carpet ride of misguided values since then. It has now come back to reality. Always enjoy your stuff Doug, please keep it coming !
rwd or performance
Wait until the Cybertruck hits the market. It will cannibalize Tesla’s line up and Tesla will be forced to lower the prices even more.
@@regmatt I live in Canada. A RWD M3. In Canada after all tax and rebates it is 52K CDN 18 months ago and the same today
to me the fact elon bought twitter and exposed how corrupt it was in swaying popular opinion on social issues made musk more of a hero to me. it was absolutely incredible that some of the things many ppl thought was going with media and govts attempting to sway ppls minds - turned out to be true. elon was instrumental in informing the world that there in fact was some collusion going on. i hope we all look at what he exposed and look to him in an even brighter light than before.
@@nickyalousakis3851 What has he exposed?
Definitely keeping an eye out! I wanted a model Y almost a year ago, and a used one was 70K OTD. If I could score one under 40K, that would be a phenomenal daily commuter!
Just ordered two Model Y LFP for 45k€ each minus 4k€ subsidy each (all incl. 19% VAT).
It will be good until they decide to disable the supercharging because you didn’t buy it new
@@Ravello1111111111111111111 supercharging is completely unnecessary if it’s just a daily commuter
Average cost of a new car is around $48k in the US. Plus electricity during off peak hours (aka at night) is pennies to charge up full. So working out the usage per month cost, it's on the same level as a base model Toyota RAV4 for me.
38K for a 2023 model y in california
This is nice! 2-3 car reviews per week + More Doug 1-2 videos per week.
PS: I miss car spotting with Doug! 😅
The More Doug channel was good. Wish he kept it going there.
@@jimmysgarage9068 Doesn't make sense. Better upload on the main channel and get 20x the views. More Doug I mean the garage and more personal videos, not the secondary channel.
Idea - split off the CarsAndBids into its own channel!!!
Yes this. Lately I’ve been clicking on these talking analysis videos in a second. I’m basically watching them more than his regular videos tbh even though those are like 10 times more frequent.
Interest rates today are ridiculously high compared to just a couple of years ago. So automobile sales across the board should continue dropping until interest rates go back down.
All you need to do to confirm this phenomenon is look at declining home sales, which also heavily depend on interest rates. 🤷
Between the rebates and the price cuts which started in December a new Tesla is 15K cheaper than in November. I think that explains it.....BTW love the channel!
Locally, the demand for EVs in general, has really fallen in my area after hurricane Ian. For several weeks people were not able to charge their cars without power while gas stations continued to operate with generators running the pumps. Tesla certainly has the advantage with its charging infrastructure, something I didn’t realize until living with my Mach-E for 8 months before selling due to the unreliable charging infrastructure anytime I traveled. But, without electricity neither has the advantage. Just something to consider before buying an EV if you live in a disaster prone area.
I'll take a plug in hybrid. Best of both worlds.
How do you pump gasoline or diesel without electricity? All gas stations require electricity to run the pumps.
@@toddtheisen8386 With a generator. Technically you could charge an EV with a generator as well, as I’m sure many did. Just talking to people who work in the car sales industry in this area, one of the drawbacks people mentioned was that. I always kept my Mach-E fully charged during hurricane season just as people should keep their gas tank full. With over 300 miles of range I could’ve easily left after a storm so I don’t see it as a problem personally, but many perceive it to be and it certainly is for people who need to stay in the area to work after the storm.
@@coryturke7336 Honestly a generator would be more practical. The battery packs would have to be massive, even a Tesla power wall is only 13.5 KWh weighing ~350lbs. A model 3 extended range battery has a capacity of 82KWh. Just as an example, a caterpillar 12000 watt generator running at 50% load will burn 1.13 gallons per hour. So charging at 6KW will charge the battery (assuming 100% efficiency) in 13.67 hours or after burning 15.44 gallons of fuel. Given the 358 mile range, that translates to 23.2 mpg, not too bad for an emergency situation. Obviously, 100% efficiency is not achievable but doing that for a few weeks until power is restored isn’t too bad even at a more reasonable efficiency rate.
How are you doing? Is everyone in your area okay?
I remember when the Prius was fairly new and they were selling for 20-22k in DC while my parents, living in San Diego, were seeing people paying 35k for the same car was in much. higher demand in San Diego. Once everyone who wanted one got theirs, prices settled where they are today. At this point, I feel it's fair to say that the line of people waiting to get a Tesla has shrunk and everybody who wanted one has already had an opportunity to buy one. Also, as people become aware of the MASSIVE cost of battery pack replacement with the cars being out for a while, some of the shine has come off of Teslas on the secondary market since not a lot of people are going to overlook a possible future repair bill the size of a new Corolla and not factor than into their valuation of a used car.
Over here the Plug in Prius Prices (used) almost doubled over the last year....oh how i wish i had gotten one to commute :(
Well said. It’s really just basic economics…. Lol.
I think it’s the world starting to hate on Elon Musk in general.
People are losing faith in him as a good guy and good company.
@@A.D.D.O.C.D.T Why would they view him negatively?
@@A.D.D.O.C.D.T he is a good guy tho.. got those stupid Twitter owners out 🥴
I think this is a good explanation. Coming from someone who runs a new vehicle dealership.
I believe the waiting list point is the biggest reason for used prices declining.
This is true across the entire auto industry.
so because new cars are becoming more available?
@@JLchevz Yes, the availability of new cars is driving down used car pricing. Basically supply and demand used cars went way crazy in the last couple of years with the shortage of chips and everything else that was affecting new cars. What you're seeing now is dealerships are receiving new inventory and more and more new cars are starting to see some incentives now to keep the turn rate going. Again, supply and demand.
Typically used car prices drop in December anyway as dealers are dumping their aged used inventory at the auctions and you'll see them start picking a little bit back up in January and February as tax season starts.
@@JLchevz yea think about the new mustang GT that’s coming out later this year you can get a 2019-2021 for 30-35k rn which is crazy to me
Tesla dropped the prices and they qualify for a $7500 credit.
You can now get a brand new Model 3 RWD for $36k (270mi range).
That makes a 2018 Model 3 with a bunch of miles worth low 20s max.
The 2018 standard range (220mi range) Model 3s will be rolling into the high teens soon.
I sold my Model Y just before the price drop announcement, that dealer is going to take a bath on that car. Got a Model X for almost a direct trade. Win.
living larggeeeeee stealerships
The interest rates are what I think of most ... I got 2.65 on a used luxury car in 2021. Now I see loan estimators on websites estimating 9% or more for excellent credit 😳
Agree ! It’s true rates more than doubled . Same with mortgages and dropping housing demand
@@krassimirpetrov7131 glad I got the house low too... This is crazy. I wanted to consider a Tesla for fuel savings (93 octane is so expensive) but the interest rate on a new loan makes it seem not worth it..
9%, non-sense. I got 4.99% from BMW last month on a new car purchase. My credit union was less than that even. But yes rates are way higher than 2 years ago
My current car I got new at 2.19. Can't imagine.
@Krassimir Petrov my friend in Cali missed out on refinancing her condo. I asked her why? Lol
I'm a used car dealer I don't agree with anything you say other than the price of borrowing money has gone up dramatically which keeps people from buying luxury purchases and limits what they can afford.
you have to compare the used car depreciation to pre COVID levels, they raised their prices like 7 times during COVID so it seems like their depreciating faster than normal but its just coming back down to pre COVID levels
The price of everything is coming down. The video gives the impression that Tesla used cars are worthless. They hold their value better than pretty much any other vehicle.
That’s what this video is about..
I'm reading this situation like this: before Jan 23 I could buy a new Model Y if I sold my Model 3 Standard Range +10k. Now I'm going to have to work a bit harder.
@@donm2255 they do, but you can't argue that a 2022 is better than a 2021 tesla
@@donm2255 Toyota Trucks would like a word with you
The market was crazy.... I had a 2014 Lexus LS460, I paid $18,500 for it 3 years ago, in September I got hit and it was totaled. The insurance company gave me almost $26,000 for the car. I've never had a used car that I held on to for over 2 years and made ANY TYPE of profit, never mind almost $7500
That is what the values were, getting a replacement was very hard even at that money.
I would guess that your insurance, maintenance and fuel costs brought the profit to near break even. Even so, use of a vehicle for 2 years for free is great!!
I'm surprised you didn't mention the impact of returning EV rebates convincing people to buy new over used. That was the biggest factor to me.
Toyota MR2, supra, Mazda rx-7, Honda integra, s2000, nsx. Those are just some examples went up in price over time
Great points and all minor factors, but you missed the biggest one by far. The 7,500 credit was announced a few months ago, which decreases the price of a new Tesla, and thus the relative value of the used cars. That and the dramatic increase in production helping to satisfy demand.
Increased competition is definitely one of the reasons. I used to want a Tesla cus it was electric and thr technology seemed great, but now these other brands offer more in my opinion. The design is just more attractive in the other brands than Tesla's. Especially when you talk about teslas build quality.
Competition definitely caught up. Additionally, Elon's chair position being replaced meant the successor would actually hit production and sales numbers. However, crazy and innovated things Elon would push are no longer as prevalent.
@@GlennTXstate10 If you think that anyone is making EVs on the same level of engineering as Tesla you really don't know much about EVs. No one has "caught up", in fact Tesla is continuously pulling further ahead of everyone. Other OEMs may offer superficial frills and style to decorate their EV platforms that are at the least, five years behind Tesla, and in many areas they will never even equal today's Tesla. Aside from BYD, who is far behind Tesla in every metric and about equal in price now, no one is able to produce an EV at a profit except Tesla. There is a reason why Tesla is the safest car in a collision, has the highest customer loyalty, and whose customers on average are the happiest with their autos. You can believe all the fake news put out by the various commercial media who are hungering for the billions of dollars that Tesla does not have to spend on ads, like GM over 2 billion on ads last year, but you are just being manipulated by people who have a pecuniary interest in making Tesla look bad, so it will be forced to pay the advertising vig like everyone else. But it doesn't have to play that game, just because their cars are superior in engineering and some people care more about that than having lots of body styles on already out-dated platforms.
@@SkyRiver1 it look like your tesla owner or your fanboy of tesla just eccept other brand are catch up which cause value of tesla to drop ,you don't need to use very long text to convince someone ,just face the reality
@@nikky4757 The reality is that if you think other EVs are on the same level as Tesla you know nothing about EV engineering I suggest you refer to Munro Tech. www.youtube.com/@MunroLive/videos
Any child can see that the reason that used Tesla's have dropped in price is because of government subs, and the fact that Tesla has lowered it's price.
Which is good for everyone, especially those in the market for a less expensive EV that is not some laughable BMW attempt or GM trying to convince people that their EVs are somehow on par.
@@SkyRiver1 Get elon's balls out of your mouth, do you think these companies with over 50+ years of being the automotive business can't catch up to a tech company?
Agree about the tech worker side. Saw so many in the parking lot. Mostly it was a cool toy rather than a wise purchase. I didn’t get one. Prices too high, battery costs are crazy, and their interiors are depressing.
And the inconsistent assembly quality. They need to pick up their game.
Interiors 3/10 point Dude Correct
KIA interior is much worse. Looks like a 2010 car 😩
It is important to understand that CarMax did a blanket $12,000 discount across the board on Tesla vehicles in inventory. Some other car buying sites like Carvana and Vroom has stopped buying Tesla vehicles completely in certain locations. Vroom quoted my 2022 Tesla Model 3 Performance with 13k miles at $33,000 the day after the price cuts. That is half of the $66,000 offer they gave me 6 months ago.
In August, Carvana, Vroom and Carguru quoted me around $54,000 for my 2021 Rav4 Prime with 13K miles. Now with 17K miles, I’m basically looking at $40,000. I paid MSRP for my Prime (43K) in 2021 and qualified for the $7,500 tax credit, so those two were the main reasons why I bought my Prime when I did in 2021.
I was looking to sell my Prime to make the jump to full EV with a 2023 Model 3 Performance, but now, I’m keeping my Prime for a multitude reasons. PHEV looks to be the best of both worlds at this point in time.
Dammm you dropped the bag bruh. I would have take that 66k and ran away with it
@@eddyrivera7287 👍👍
Regarding "the competition" -- I just ordered a Chevy Bolt EUV. My requirements: primarily "commuting appliance".
- I qualify for GM supplier pricing, so I was able to see the price I would pay. Minimize the dealer nonsense. Also cuts out the "market adjustments".
- 250ish range is fine. We have two other vehicles in the family that are PHEVs so the Supercharger network is nice to have, not a must have.
- Fully optioned, Bolt is $42K. That includes Supercruise, fancy stereo, upgraded seats, sunroof.
- Performance is more than adequate. Rush hour commuting is either sitting in traffic, rolling in traffic, or basically going the speed limit.
- Model 3 RWD is $43K. I live in a place it snows. FWD with snow tires is fine (AWD/4WD is not a hard requirement). RWD is less desirable (although wife says NO). Model 3 AWD is $54K to start.
- Incentives : $7.5K Federal, $3.5K state, plus free EVSE, and some other incentives drop serious money off the price.
- Insurance rates: I have one teen driver and soon another. Tesla insurance rates vs. Bolt insurance rates are significantly different.
Also, regarding "the competition" -- when I was at the dealer putting in my order, there are signs for the electric versions of the Blazer, Equinox, and Silverado, on a new platform that offers quicker charging and more range. Ford is backed up on orders for the Mach-E, and can you tell me the last time you saw an ad for a Mercedes that wasn't electric? You'd think Mercedes had entirely given up on internal combustion and was instead only selling to attractive ladies who wanted electrified SUVs, based on all the TV ads they have been running.
I've ridden and driven Teslas. They are nice. The acceleration is brisk. Some of the quality issues are probably overhyped, but another factor you didn't mention was Tesla's drop in Consumer Reports rankings, which was widely reported. Yes, cue the "CR only likes boring cars" or "CR is biased towards Toyota and Honda" comments, but plenty of people only like boring cars, and Toyota/Honda do a good job making well engineered, reliable, long-lasting quality cars (even if many are, well, boring). There have also been numerous Tesla recalls in the news this year, too, which can't help -- and yes, I know GM also recalls vehicles. So there's definitely some dirt getting on the halo, and plenty of competition on both the low and high end.
Liked "some dirt getting on the halo". Also the emperor's new clothes!
Are you me? Hah. I’ve been through the EV ringer too. Drove the tesla and couldn’t get my hands on a bolt. However, aren’t you worries about the super tiiiiiny issue of your car exploding and setting your house on fire and killing your family? (I’m holding out for the Blazer ev by the way).
@@baconbigbeats The batteries which could have the potential fire hazard have been recalled and replaced, and the root cause found. If you look at the numbers of potential cars affected it's ridiculously small. ICE car fires are far more common, to the point there are many more of them to where they do not make the news anymore. When I looked into it, there were more car fires in the US than Bolts than had been made. Not to mention well known design flaws where F-150s would catch fire if the master cylinder leaked onto their exhaust manifold.
We have two electrified cars already, both PHEVs. I'd get another one but the Bolt EUV is really a screaming deal for what I need it for.
Why why why? No one is talking about battery life? Batteries can last 7 to 10 years, and then they either can't hold a charge or diminish from holding a charge significantly. 🤔 So people just get rid of the car before paying 20k for a new battery on a Tesla. People are offloading these older Tesla, and the market is becoming flooded. Like the housing market in 2008, when everyone offloaded their homes because the principal on the mortgage payments were due and nobody now could afford the payments. It is similar here as the market gets flooded with older EV, to many cars like there were too many houses, causing housing prices to drop dramatically, and in this case, Tesla.
The competition aspect you brought up is the most interesting to me. Made me wonder if this is similar to tech startups. A new/agile player enters the market to fill a need quickly. They do well for a bit. Maybe they start looking to other opportunities instead of focusing on their core products. The established brands catch up (this is where I think Tesla is in the story). The next steps are to innovate again to get back to the top or sell out to the established brands. It'll be interesting to see how it goes for Tesla
@L. G. but branding those supporters as toxic doesn’t help either. Every brand from Ford, Dodge, Honda has their supporters.
Common misconception. Tesla is by far the leader because they have secured the highest battery cell supply going forward which is crucial to ramping EVs.
Plus Tesla has the most advanced manufacturing processes (GigaPress etc) that has lowered the production costs resulting in the highest margins.
So no one is catching them anytime soon.
Tesla wont be selling out to established brands any time soon if that's what you thought me be a possibility. Tesla's market value exceeds all established brands combined They simply cant afford to buy Tesla
@@blackvr4tt cell allocation agreements only last for so long though. I agree having supplies for production is imperative, but if competition grows, cell shortages increase, and someone outbids Tesla the Panasonics/LGs/Muratas/Samsungs/etc of the world will just sell to the highest bidder. I'm only saying that Tesla needs to keep advancing if they want to stay up, and that is something that applies to all businesses
@@patrickbrown247 Tesla has been securing lithium supplies directly with lithium mines.
Fantastic news, as supply lines start normalizing I can't wait for cars to be affordable again.
Tesla just dropped the prices of their cars by like an average of 15% this week (not included in this video), the new ones that is. Other manufacturers are doing the same but might take some time!
@@MRkriegs Or rather they returned to their original prices.
Yeah, like the $110,000 GMC Denali Yukon XL that is uber affordable. Oh wait. Maybe the Chevy Suburban at $92K??
You forgot to mention how former Tesla customers left the brand because of the HORRIBLE customer service & car repair service. We were a 2-Tesla vehicle household who just had enough of their uppity attitude in dealing with customers and how they handle servicing those cars!
I agree in general with everything. However the only one that matters is competition. The drop in price is because of the Federal Tax Credit. If you build a Model Y now, LR only with minimal option, it meets the 55k limit for a 5 seater. If they didn't lower the price they'd see more drops because loads of other small crossovers would eat up that credit.
Agree 100%
then how to explain the same drop in price in Europe and an even bigger price drop in China?
@@222aint he can't because murricunts think they are center of universe
Every company can make ev car, even apple, sony ,....
@@222aint The costs are cheaper in China.
In Scandinavia they are still some of the best value EVs especially at these new prices. The build quality on the Shanghai/Berlin vehicles is pretty good and competitors often cost more when factoring in equipment such as adaptive cruise, heated and power steering wheel and seats, glass roof etc which are standard on all Teslas. Sadly most of the "real" competiton such as Nio, Rivian and Lucid won't arrive here for a long time.
I guess ur in denmark then, nio is both in sweden and norway.
I think there has also been a sort of disconnect between the automotive press and car buyers. I think journalists have wanted a "model 3 killer" to arrive and shake up the landscape, so anything that has came close has garnered maybe unfairly generous reviews.
Cars like the Kia ev6, polestar 2, it, etc are all very good EVs, but on the whole are beaten out by the model 3 in either price, range or featureset. However, journalists don't want to recommend the model 3/y for the 5th year in a row, so point consumers in the direction of one of these cars instead.
(I think it's also worth noting I'm not a Tesla owner or fanboy, I just find this search for the new hotness stupid)
@@danielstefanovic2604 NIO ET7 is in Denmark too, at EQS prices... Not many to be seen on the road...
That's because they're made in China at lower cost, Tesla has no dealerships to support or offload supply to, competition has been growing in these nations putting pressure on Tesla's prices, Tesla supplies the most units, and Tesla cannot carry inventory at the end of quarters without making their financials look terrible, so if demand wanes or if there's new competition, they have no choice but to rapidly reduce prices below competitor pricing to clear out inventory. With Scandinavian countries offering lucrative incentives to buy EVs, it's a pretty sure fire place to offload their inventories. Especially Norway, who's had some of, if not thee most lucrative EV incentives in the world.
To add, Tesla's only able to produce the volume of vehicles they do and only able to continuously grow production every quarter as they do by over ordering every battery cell that they can from their suppliers, and thus needs to keep increasing vehicle production. They have no choice. If Tesla isn't able to offload all of their vehicle inventory and has to slow down production at any time, it could lead to a massive build in battery cell inventory that they can never catch up on, with ever growing battery shipments coming in every quarter, as I imagine their contracts with suppliers dictates.
The irony is that Tesla's massive cell orders have caused cell supply constraints for other OEMs who simply aren't able to increase production due to a lack of available cells to buy, and those they can buy are more expensive due to Tesla creating huge cell demand. (Tesla gets a discount for huge consistent orders, but it drives the cell pricing up for everyone else competing for the remaining capacity) Everyone touts Tesla, claiming they stand alone in the motivation to increase supply of BEVs while attacking other OEMs as dragging their feet... but in reality, the two are tied together. It's actually due to Tesla's rapid production growth that's restricting other OEMs from growing as fast. Tesla is just buying up all the world's available battery cell capacity, and starving other OEMs of cells. In other words, the total output of BEVs is cell supply restricted, and it doesn't matter who's building the BEVs, there's only a limited number of BEVs that can produced per year and we're already up against that limit.
But this is coming to a head. Tesla is still buying the vast majority of their cells from suppliers and just getting started building their own cell lines, while currently just about every other major OEM is building their own cell facilities where they partially own the production. Tesla's currently working on two of their own battery cell plants with a third in development in Germany. Meanwhile, the other OEMs are in the development or construction stages of about 40+ battery plants between the US and Europe alone. And that's not even considering the Chinese competition. BYD builds their own cells and has quickly surpassed Tesla's growth rate.. and they're not dealing with the extra cost of paying a third party supplier for all of their cells like Tesla is.
The real kicker will be if Europe moves to protect their own local vehicle manufacturing by implementing new tariffs on Chinese imports; of which Tesla is the main benefactor today. Before Tesla, there were no brands mass importing vehicles into Europe from China. Tesla was really the first company to do it, and maybe European officials let it go because of their drive to electrify... but I imagine it's already starting to hurt their local economy. Chinese imports not only create a trade deficit for Europe with all of the revenue being sent off continent, but as a result of the lower wage labor utilized in China and less of the purchase revenue going to the workers, it also creates a major transfer of wealth upwards from the European customers to the ultra wealthy executives and shareholders. Or did we all think Tesla's profits and gross vehicle margins just appeared with magic? As soon as Tesla started production in China and exports to Europe, so too did their margins start rapidly increasing. It wasn't the only reason, US price increases and the introduction of the model S plaid certainly helped, but it was definitely a big reason.
In case anyone's wondering, the US has a 27.5% tariff on all Chinese vehicle imports. They also have a 7.5% tariff on Chinese battery cell imports, but Tesla still deems the LFP cells worth importing (used in the model 3 RWD). However, the new EV tax credit won't give a credit for those cells, so the model 3 RWD will, at most, qualify for only half the EV tax credit once the rules are enforced. Supposedly in April. If Europe adds tariffs to Chinese imports or worse, then Tesla won't have the US as another market to ship their Chinese made cars too. Now we'll just have to see if Europe steps up and does the correct thing for their economy.
Not in Sweden. Electric cars aren’t economically viable. Teslas are priced as luxury cars here and they are not luxury cars.
This was expected, what Doug is saying is true. Other brands are catching up especially bmw, Hyundai etc.... inventory at dealerships is catching up as well. I believe not only Tesla but other brands will get affected aswell in the future. The interest rates are also insane, financing a car nowadays it's not a very good idea.
I got my Model Y in Iceland December 22. Teslas were not depreciating at that time and holding value very well. Delivery time was 1-3 months.
From what I know cars where not often "available now" ie. someone decided not to take delivery. When I came in to Tesla Iceland I could choose from 2 cars. A few hours later I was offered yet another car (which bought). Thinking back this is very suspicious especially since the car was about to increase about $4000 in price in the new year because of tax changes. So now I'm thinking - who knew about this? Did Tesla Iceland tell friends to not to take delivery and they then passed the cars on to suckers (me)?
This feels like a sort of insider trading thing. I can not see any difference in selling company stock you know for a fact is going to decrease in value and selling a car that you know is going to (abnormally) depreciate in value. Legally it seems to be different but ethically I can not see a difference. I suspect why this is legal and insider trading is not is that insider trading affects people that have money and power. A new car is for most people the second most expensive thing they will buy.
Besides the money I feel I got robbed of the joy of getting and owning a new car. I like the car but I also hate it.
Anyway my blood will stop boiling at some point but I find it very unlikely that I'll buy another Tesla.
It certainly sounds like the insiders knew what they were doing. Musk should give recent Tesla buyers like you a rebate.
You don't like - you don't buy. You made the decision to buy. Stop wheening.
In the moment you were happy to buy the car at that price, period. You let a price movement affect your emotions? So if the price had gone up after you bought your car you'd be all happy that you beat it but since it went the other way you're sad...that's dumb.
@@falecf4 agreed 💯
I am hearing this exact same story in China and the Chinese purchasers of Teslas are very mad too.
Doug, I'm concerned, are you going to have to re-arrange your entire license plate wall if you get a plate with the number 23? Or are you going to just put it on top of one of the extra 22's?
I'd take a Taycan over a high spec model S any day, for the same price.
Exactly! Or the Audi Etron GT
They are just to boring now. I feel most people don’t want everything inside the screen too. Most people want buttons. It’s so much faster and easy to access while driving. Also not having a driving cluster in front of you is a huge shock to most people. How hard can it be to add a cluster? And modify the looks every 5-6 years
The main reason why i wanted a Tesla was for autopilot but now that Hyundai has highway lane assist, i dont have to deal with Tesla's terrible customer service or poor quality vehicles anymore.
I agree with 100%. I used to see Tesla, "Wow, it's so cool." Now, "Tesla? So what."
I agree with your statement and add that they’re overrated.
Plaid owner here and have to say service has been horrible. 10k miles and already replacing motor (left me stranded in middle of road), falcon doors repair 3x, dirty beat up loaner cars, overall crappy experience for a $140k car!
ha ha ha!
In Belgium there were more than 200 Tesla for sale on a website before COVID. Then it went down super hard. And now in just a few months this number went up to 430
In Finland it is even more nuts. There are more than a 1000 Teslas for sale in the most popular car listing website. For comparison the most popular make (still Toyota) has 6200 cars listed. There are still like 15000 Toyotas sold yearly in Finland where as with new Teslas the number is like ~1000. For Finland especially the 2nd hand market for Teslas went totally nuts during COVID.
You only want Tesla, the charging network is the only real one!
There’s a couple of points that you missed.
1. Abysmal build quality both in general and for its price point (and no, its performance isn’t suffice to compensate for its build quality)
2. Reliability issues, epically for the Model X, Model Y, and Older Model S
The dull design is a turn-off. Some people don't want stark minimalism and everything on a touch screen. Proprietary connectors are also a factor. Then there's the rabid fanbase that refuses to admit any criticism of Tesla. Ford and GM and Mercedes-Benz have been making cars for a long time and have figured out what customers want and how to build cars. Even Kia and Hyundai have figured out build quality.
@@bwofficial1776 Ironically the Shanghai built Teslas rank the highest in build quality.
Overpriced piece of junk.
The company won't survive past 5 years. They are now being crushed in China and this will just get worse, in Europe and US.
People like to say I love my Tesla but 50% of Tesla owners don't go back to Tesla. 20% of Californians Tesla owners would not buy another Tesla.
The hype is over
$20,000 battery replacement after 10 years. Fantastic life for lithium battery, horrible way to economically write-off a car.
@@bwofficial1776 I totally agree with your point on it’s dull design and stark minimalism. I’ve always hated stark minimalism as a interior style and it’s probably the worst car trend to surface recently imo
Doug excellent commentary as usual one thing that also is causing the price to drop is the new federal EV tax credit on new vehicles. Now that all new Tesla 3s and Ys qualify
Ya this is one of the biggest reasons
This is without a doubt the biggest reason!
Did it drop? or is it null and void now? I think government incentives on EVs is ludicrous. Making me, who can't afford a new vehicle, or even a NEWER vehicle, pay for a rich person who can afford to buy a new vehicle via taxation.
Up here in Soviet Canada we have carbon taxes.....that again is making people like me who can't afford a house pay to replace the furnace and windows for a house owned by someone who can.
I mean, what's next? Making me pay for rich people to eat vegetarian?
@@muskokamike127 Oh, a rare specimen you are. A NA citizen that seems to understand that company driven politicians on both sides are screwing you over.
Or maybe you think one side doesn’t do it? If that’s the case good luck 😅
But if you understand the real issue you might want to check what Andrew Yang proposed to get special interest money out of politics.
In my country (Germany) we are doing what he proposed. Not perfect but better than the US in every way. Don’t know about Canada though.
I think the price has to be less than $55k to be eligible for tax incentives.
Well put on all fronts and spoken in a clear concise way. I hope they keep tanking....I want a salvage 3 performance project in my life.
Some years ago Tesla was the new cool kid in town. Driving a Tesla made you stand out as an early adaptor. Not so much anymore... Anyone and everyone drives Tesla, it has become a standard product.
Well yeah no shit lol
Crazy idea, have you ever thought so many people buy the cars and want the cars because they’re excellent vehicles?
That’s a good thing bro
Same thing has happened to BMW but they still sell like crazy.
Covid definitely had an effect. Inflation and how everything was up made used Teslas incredibly overpriced. This happened in the sneaker market where people were flipping shoes for insane profits than pre-covid. Now prices are starting to fall back down to pre-covid days.
This is a really well done, thorough, and thought through video. Very insightful. Well done!
Doug , you ,missed on a few points. The economy. As a street smart investor I have noticed a shift in consumer buying. Basically people are holding their money. And then the popularity of the product has toped out. Again just the norm. A smart move would be too wait for the China crunch which is coming. Then the long term effect on Russia related to its war cost. Europe is heading into a crunch on the pound and the euro. Prices can only drop even more. Interest rates will rise and maintain for the next three yrs at least. Im not looking thru the eyes of a used car dealer. Only as an investor. Not pretty.
Missed one reason.
I know more than a few people that own, or have owned, Teslas that are very dissatisfied with their customer servise at their shops when something needs to be repaired. From what I have heard this is something that goes for most of the countries Teslas are sold in. Here in Norway they have been the bottom brand several years when car owner are asked to judge their cars and the retailers and shops. People notice this and choose other brands instead.
Tesla has put a lot more emphasis on their service centers in the last couple of years, so it's improved a lot
It's cause you're in Norway lol
@@blackvr4tt Not here in Norway. They actually did worse in 2022 than in 2021. Last place both years, but less points in 2022...
@@gumerzambrano No, it isn't. I've heard the same from people all over the world, including the US and Canada...
Yup! Service is also poor.
Agree on all points. The bottom line is they're boring and no longer the only game in town. No longer a status symbol, either. They're too common.
Yeah, in some areas they are ALL OVER. And they all pretty much look the same to the average person.
They're as hip as prius' now. The trendy stuff of setting the turn signal to make a fart noise, or making the horn moo is no longer "fresh". There are vastly better options with wildly better interiors that are actually interesting to look at and be in.
That's exactly what Doug said himself in video several months ago: "People keep asking me why I don't have a Tesla. I really think they are great cars. But apart from my personal recharging-situation it's really because they've gotten very common around here! And I do pride myself having special cars in my kind of way. They don't have to be flashy, but there should be something special about them." (Quoted more or less accurate 🤣).
LoL, that was dumb.
Yeah, I looked at used Model 3s after Tesla price cuts and was astonished how big the price cuts were. Even more compelling than the price cut + federal incentives. Some really good points you made here Doug. Thanks!
So many people bring up the Tesla federal tax cut. How many of those people owe 7k at the end of the year and could even capture that write off? Most can’t
@@CurieBohr I'm sure those buying a tesla could, or close to it. Got to look at how much of your paycheck is going to taxes vs what your normally get back.
Single largest factor is the fact that supply is catching up with demand. His quantities out of his new factories have greatly increased the number of cars available. It's no longer a rare unique thing as I see Tesla vehicles everywhere now. He's run out of trend followers, but he has plenty of rank and file masses that currently drive regular internal combustion engines that may be ready to switch as long as somebody fixes the charging station problem. It's time for filling stations to convert to charge stations.
Gas stations converting to charging stations is mostly not really going to happen, they're mostly just going to go out of business. There's a few good reasons for that, the biggest being day to day use charging isn't going to happen at a place dedicated to charging, it's going to happen at home. Why would I go to a store to charge when my car is charged up every morning? For homeowners, it's easy to put in a EVSE, I installed mine myself because it's not hard to add a breaker to the panel and run a few wires. Apartments are already starting to put them in their parking lots.
No, fast charging is for road trips. And since it's going to take a bit longer than a gas fill-up, a convenience store isn't really the right type of business to have them, they really should go in places like shopping centers near restaurants. If you're going to be waiting on a charge, might as well grab a quick meal and not just some crappy snacks.
I personally think that people have started to notice the build quality as Tesla has had products on the market for a reasonable amount of time (over a decade). Now people are realising they don't have the longevity other manufacturers do...
Plus the other EV options are more numerous and often better.
Sustainable is not spoken here.
Yes I think the rise of Interest rates is a big factor here in SC most people have mentioned that the rates have changed everything, also the high cost of their product, again waiting for the Cybertruck.
Doug is completely right about many Tesla buyers working in real estate, and many other bubble occupations. I can’t believe that I didn’t realize this, but everyone I know with a Tesla works in 1 of those bubble industries that’s falling back to earth
Awesome info and diplomatically presented. I really like when someone can talk on a very touchy topic with a rabid fanbase and cover it without causing a storm.
The Tesla fan boys are a nonsensical scary crowd. I agree, Dougy boy did a good job here.
@@pibblesnbits They are only a subset of the elite woke warriors.
@@pibblesnbits every crowd gets nuts. The Tesla fan boys and the "EVs are for liberal wheenies!" crowd.
....Tesla fans will still have a snit over it.
Doug is trying to short Tesla stock by creating doom and gloom content.
It’s not just Tesla it’s all electric cars I couldn’t believe when I saw a 2022 Audi RS etron gt the other day for $120k with only 1700 miles the thing literally had a 37k depreciation just from someone driving it 1700 miles which is ridiculous
I for a while really wanted to get a Tesla, but as of this year, I've realized that that is no longer the case, mostly due to seeing all the poor quality assurance videos regarding their cars.
tezzla nothing but an over hyped, overrated, n way overpriced, rolling
microwave oven coffin.
I'll be waiting for Toyota in the future when my gas car is old enough to get replaced or go for 2 seater Aptera which is more economical, have more range and cheaper to buy in 2-3 years.
In Europe, the price of electricity has increased by a factor of 6-8 depending on country, which I think is the most significant reason in Europe at least. During the most expensive periods, like dec and sep/oct, regular cars were actually quite a bit cheaper to use than electric cars. With no end of the war in sight and a general lack of energy in most of Europe, it would be a gamble to buy an electric car now.
Depends, energy prices are dropping and you can fix your rates for at least a year. Plus if you have enough solar panels you're able to drive most on solar energy on daily commutes.. I got an electricity-only home with a decent surplus in solar energy, which goes to waste back to the grid anyway. Electric cars are not that of a silly thought
If you have enough $$ to buy a tesla, you def. have enough to put up a home made solar setup that keeps up with a daily stage 2 charge.
Fascinating. Please keep us up to date, Tesla users are furious with the price cuts. I dont think they have ever seen a new EDIT: Any ice car depreciate so much so quickly before.
Almost
i have a kia.... it depreciated like most any other car.... but they dont depreciate like fords or chevys do.. at least not anymore. in the old nineties kias depreciated just by looking at them.... but today i think hyundai/kia cars are the ones to beat. even their electrics are pretty good.
> Tesla users are furious with the price cuts.
I read that it was especially bad in China. Many buyers are demanded rebates on their recent purchases. The price drop has clearly been too much, too fast for the market to absorb. Yet, it will continue. It is not a good time to buy a Tesla. And, until the good times return, the prices will continue to drop.
I believe it would serve Tesla well if Elon would sell the company so that it would have new management; under someone will extensive automotive experience. I can envision several of the large companies being interested in buying Tesla if the price was inline with the book value of the company. A large premium, they would not pay. That would also allow Elon to focus on his new, pet project.
Tesla is experiencing too many recalls, too poor workmanship (fit and finish, for sure), and a sharp decline in consumer confidence.
@@nickyalousakis3851 That makes sense. i considered a Kia car hunting a month ago but the engine recall pushed me off for now. Will see how it is in a few years. I do feel bad for who ever is buying the $105k escalades today.
@@davidk4112 I bought the Stinger - red - love it. i didn't get a recall.... i guess maybe one in particular engine has a problem? who knows. so far loving the car. we'l see as time goes on.
Rocketing high inflation worldwide = less purchases on products that are nonessential, to buy new you must get rid of one, used haven't been selling...
I have one coworker and one friend that canceled their Tesla orders because of Elon Musk. And I live in Texas. One went with a non electric Audi and one went with a Hyundai Ioniq 5.
Media consumption is a hell of a drug
I have a coworker that got a Tesla because of Elon’s more conservative view points. Also, my dad who’s pretty conservative and hated electric cars all of the sudden loves Tesla. …so I suppose it goes both ways. Funny how our culture no longer respects different view points and instead we choose to alienate ourselves into our own little clans 🤔
@@ESUNintel On dating websites, the percentage of those on the left who say that they refuse to date anyone on the right is a considerably higher percentage than those on the right who indicated the same about those on the left. Think of how far gone a person has to be to boycott a company because that company didn't continue to aggressively censor opinions that you don't like or can't argue against so just want to disappear. Cue sesame street music: "One of these groups is not like the other"
@@ESUNintel I agree. It works both ways. I don’t see it as alienating themselves into a bubble. Choosing not to spend their money with a company who’s values don’t align with theirs isn’t alienating . They’re supporting a different company and Tesla clearly realizes that or they wouldn’t have slashed prices. As he said in the video, there’s a lot more competition and the designs are old, but they’re seeing Elons words are affecting their sales so they’re slashing prices on the new cars.
I ordered a Tesla and waited from April 2022 to September 2022 and the date kept getting pushed out. I finally found a Mustang Mach E and bought it! - now Tesla calls me to see if I want a car, but they will not credit me for the $250 deposit they kept from April. Not a very smart policy so I passed!
Have you noticed a decrease in cars across the board on cars and bids due to the interest? Or is it just pockets like Tesla’s and vipers
I work for a car dealer. Pretty much all cars have gone down almost $6-7k in trade value over the past 3 months.
@@David-dx5wz wow nice, thanks for sharing
@@David-dx5wz houses next please LOL
Thanks, here in the UK, white model 3s are very common, they are often company cars used with high mileages, there are huge tax benefits for the employee to drive an EV.
Now there is so much more choice, the Teslas are looking dated and boring, and we love our German BMw, Audi, Mercs etc. Kia and Hyundai are making some superb EVs. The supercharger network is still a huge advantage, but it is steadily being eroded, with new multipoint hubs appearing everywhere. So in my opinion the competition has caught up and taking its share.
Absolutely not,even the next best electric car is a generation behind Tesla. That’s why evs from bmw etc have to put so much unnecessary pomp into their cars.
Polestar alone is much better than tesla
@@voxxonline Factually incorrect. Chinese are pretty advanced in ev technology, but still far behind Tesla.
As you mentioned, there are a lot of viable competitors to the Tesla now. So even though you're talking about used Teslas, a lot of folks looking at a used Tesla might consider a new car from a competitor.
a new, or used hyundai, and / or kia much better than a tezzla.
@@driver4011 do those have autopilot? that's big for me, driving long distances on highway is boring and unnecessary. the car should be able to do that for you
@@elemenop718
mine doesn't, but the new hyundai ioniq 5 has level 2 autonomous driving.
@@elemenop718 then you should get a Mercedes. Their new system surpassed tesla's in nearly every point, especially after tesla got cheap on the sensors. Check youtube, there are multiple videos of it. And an EQS is jn the same price range as an model s, the EQE might be comparable to the Y in price, but that i don't now, the EQS is the one for me (test drove the S and the EQS ans then decided)
@@elemenop718 Ignore him, buy a Tesla.
Then: This deal is getting worse all the time.... Now: This deal... is very fair and I'm happy to be a part of it!
I won’t be looking to get a new car myself for at least another 5 years, but as much as I really like and have interest in other EVs, especially the Hyundai/Kia, I just wouldn’t actually consider any non-Tesla strictly because of the charging network. It simply is not there quite yet. It’s getting close, but at the moment I don’t think it’s much of a debate. Hopefully when I’m in the market it will be more comparable and I’ll have more of a decision to make
I don't know why anyone would want an electric car. You're going nowhere in a blackout and you never know when the grid will go down. Plus the battery is like 24 grand. When the battery goes the car is junk. Plus Tesla refuses to sell parts so you have to go to the dealer.
@@ericbitzer5247 I want both an electric and gasoline. 😂
@@IAM-re3xm Well, if you can have both, then why not? I would never have one.
@@IAM-re3xm Just get a PHEV then.
The main factors are major competition coming on line including many vehicles with more conservative interiors/styling and lower prices and the realization they don't work well in long cold winters plus no way to charge them durring major power outages.
LoL, like who?
Also, keep in mind, the new requirements for the federal tax credit of $7500 does require the pricing of the vehicles to be lower than Tesla is charging currently.
Tesla just dropped it's prices so now Model Y and Model 3 qualify.
Model Y has effectively dropped $20k with the tax credit which is why they're getting a surge of orders
No! Make your product more attractive to customers? CRAZY! Competition actually lowers prices...who knew?
Did you not hear the big news? The dramatic price drops that Tesla has just implemented now make all Model 3s and most of the trims of the Model Y eligible for the tax credit.
It is interesting that this realization hasn't hit home here in Canada. Still seeing used Teslas offered for more than when
they were purchased initially. Indeed many are more than what new order price or instant delivery price is.
Have interest rates gone up in Canada too?
Surprising, since EV's are not well suited to low temperatures.
@@grod805 Yes they have, we have virtually the same conditions as the US but a smaller market and less early availability and acceptance. Doug mentioned that in his car sale site he is still having people try to list at the inflated prices from a few months ago, we just seem to have more of those people.
The only reason to get a used 3 right now would be for the Long Range model since it hasn't been available to order a new one for a while now and still isn't.
But the used are priced similar to new at the moment, and even the ready new have a couple hundred added on
Last year’s end of the year $7500 off sale event was like a trap for people to fall in to. I feel sorry to those who bought their MY that time, now seeing their cars’ value dropped significantly just in 2 weeks. 😢
Took delivery of*. If you bought but didn't get the car yet, you should be able to get the discount.
It’s not that complicated. Tesla lowered their prices
Also, another minor factor may be the increased media attention on Tesla fires. I’m not sure if Teslas are catching fire at a higher rate than other EVs but they’re certainly getting more media attention.
He’s been sued for his cars just… combusting
"Autopilot" malfunctions actually lead to fatalities. Plus cars have a huge trust factor in them. If you don't feel like the company is committed to the thing that increases the chance of death the most, then you won't take the financial burden for it.
It’s drivers not paying attention that have led to accidents and fatalities, not Autopilot. Autopilot is there to take care of the menial tasks of driving. Not to be autonomous. I’ve owned my Tesla for 4 years, and have used Autopilot a lot. I do not start playing on my phone, or whatever other distraction. When the car gets “confused” I take over. It’s not that difficult. The problem is the people that put an orange, or other things in the steering wheel to give it enough resistance that the car thinks someone’s hand is on the wheel. Also, look how many I.C.E. vehicles have caught on fire. The media doesn’t report on “regular” car fires. But EVERY Tesla that does (which is very few of them) they make headlines.
@@baseballzeus7894which would be all well and good, but Tesla market thier autopilot as full self driving. They very much said that you could set it and forget it, which is where I would say the problem is. The autopilot feature isn't bad, but it was marketed dishonestly and on bad faith. By convincing people that it could do more than it was capable of, people got complacent, and got hurt
@@densepixel 7 fatalities in 4-5 years due to this issue, and how many fatalities from ICE cars in the same period? That is a FUD comment.
Should we expect prices on EVs from other companies to decrease, as well, because of the supply issues starting to relax? Ioniq and EV6 are looking great.
I don't think that's happening anytime soon. Tesla has the production locked in while the other companies are still figuring it out and trying to make a profit. I believe Elon recently said he's ok with breaking even this year as long as he can push out volume. Don't think any other car maker can say that.
@@PsychItsMike You speak from what knowledge source madam ? Locked in ? Doug just told you (& he apparently knows a bit about all car stuff yeah?) the Tesla models are old already , not just locked in but stagnating you Musk lover … & sunshine News flash !!! Every car manufacturer has had numerous models where they had to cut even. Hell many have outright lost money on some of their best models. Don’t try sell corn as you obviously are not a corn farmer … Trust me, the Tesla Hype has simply started to show… Another few years an Elon fanboys like you will be very shocked !
Love these videos about the insights you find through running cars and bids. More of this please!
It's really a unique perspective!
As a long time Tesla fan (2016) I completely agree with every point made. Tesla has been in the fortunate position of not needing to come out with new models or innovate much because demand was so high. Now that demand is slowing, I'm expecting to see more price cuts, more innovation, and likely the unveiling of a lower cost Tesla to be more competitive and increase sales volume.
I agree 100%, I feel like since they announced cybertruck they just kept their head down and focused on completing gigafactories and expanding current production instead of innovating tech, but thats not mentioning the new 4680 cells and full body casting
Also I think they’re gonna have to find a way out of the bubble design.Teslas aren’t bad looking but the bubble look is getting old.
good luck with that considering battery is 50% of the cost and lithium prices are in the roof
@@bryang9290 The current Tesla's look too much like the GM Saturn's.
@@SL1NGSHOT222999 Are you kidding? Tesla spends the most R&D and least in advertising per car sold BY FAR. They are constantly updating their tech on each production rollout....they don't wait for the next year.
Boy that's a lot of good, unsubstantiated and completely anecdotal guesses Doug.
You really think that there are SO many investment brokers and mortgage lenders own Teslas that they'd sway national/international Teslas prices? This screams "I live in a neighborhood with rich people and they drive Teslas so obviously this is how it is everywhere".
Agree with nearly everything Doug.
I think you understated how many of Tesla's customers were reaching to buy their cars (especially at the old prices). I certainly count myself in that crowd as a model 3 owner (bought in 2020). I would never have spent that much on any other car, especially since here in Canada the supercharger network is still massively ahead of CCS. Even with the CCS deficit here I don't think I will replace my model 3 with another Tesla when the time comes, though I do like my car.
Also think you missed a big factor in why the waiting list has gone away. Tesla has ramped up production in Texas, Germany, and China, so they can simply make more vehicles now. Pre-covid they were already supply/production constrained and the pandemic only made it worse. I think Tesla found the limits of their demand in pricing and production simultaneously.
On the innovation front I do agree they are in serious need of a facelift/refresh, but it's worth noting Tesla has been busy hyper-optimizing their production process so it's far cheaper to build their cars now than it was upon model 3/Y introduction. A few years ago Tesla production was a giant mess, now they have leapt ahead of the rest of the industry in certain ways (though the paint remains dreadful). 4680 batteries and massive single castings (among other things) are true innovations unique to Tesla, you just can't see them from the outside. I do agree Cybertruck has been an unmitigated disaster.
All the nonsense about Tesla's poor quality on the internet is on the same level as Harley Davidson is going out of business. LOL
Total rubbish by people who have never driven a Tesla!
Finally someone who has a more detailed understanding of Tesla.
The competition advantage with production cost and efficiency is huge.
In terms of paint, it's improved at Fremont but is excellent at all their other factories.
Cybertruck has a huge waiting list and will be a big profit driver as it ramps into 2024 and forward
Yeah I was just speaking to a detail shop here in SoCal who said that Teslas were the main reason they kept their doors open doing ppf etc over the past couple years…because Teslas were the only carmaker still producing and selling, or even increasing sales of new cars, while it was used cars that went crazy for every other brand (and you’re less likely to ppf a used car).
Stop and think about that, Tesla did so well to keep production up when no one else could it had knock on effects on the broader auto business ecosystem.
Hope Doug reads these comments bc I do think his video was incomplete in a few ways.
It’s funny I have zero interest in any EVs but the Cybertruck is appealing to me..
My mom wanted a new EV. She didn’t buy a Tesla because she dislikes Elon and wasn’t impressed by the quality. The competition just does better in quality department.
Good decision
Why doesn't your mom like Elon? Is it related to Doug's first point? People think he's crazy after the Twitter purchase?
All he did to "earn" the crazy moniker was release information revealing the collusion between Big Tech and the US Government to suppress individual First Amendment rights.
I guess that just goes to show the power of The Narrative(tm) and how the legacy media carries water for the DNC.
Tesla is junk
"My moms a bot and let's cnn tell her what to think"
@@user-hc7ry8qp9o lol mainstream media has just been glorify Elon for years. Elon fans are some of the dumbest people without a shred of critical thinking.
I'm in France and the huge price swings of new teslas makes it really hard to price second hand ones.
The Stadard Range model 3 went from 50k€ to under 40k€. A lot of people were trying to flip their model 3 to get a model Y too. I've seen adds for 2021 model 3 drop from 37k€ to 30k€ because of the price drop for new cars. Same time last year I could have sold my model 3 for 0 loss and 30k miles on the car.
I did exactly this early November. I sold at just the right time. Need me another one though. Loved that car.
Did you get the 8k discount we got in the UK last week?
@@hardergamer we had an even bigger discount because the model 3 standard range qualifies for a 6k incentive so the total discount is about 13k!
I just leased a 2023 BMW hybrid, I was going Tesla this time but Mr Musk factor turn me off, idk if a major factor for most people, but a 100% in my case
Forgot the Semi - that was just dropped into the commercial market and is innovative. They were finishing the semi to use the motor in the cybertruck. They have been just focused on the commercial market for a couple years to get the Semi out.
The semi uses 4 of four of the model 3 motors. People don't know shit in these comments ;D
I think you are correct Doug on the interest rate. I also believe that the EV competition from other car manufacturers which provides more selections rather than Telsa is also a factor!
That's is the biggest factor!
Basically 99% of the EVs from KIA/Hyundai look way cooler than any Tesla on the market.
@@fortheloveofnoise Define "cooler" certainly not in the tech or software, Kia and Hyundai are massively inferior in that respect. Both of the "cooler" cars you mentioned having boring, busy and predictable interiors.
Doug, you made some good points but missed some other major ones.
Tesla used car prices were abnormally high during and after covid due to short supply as you mentioned. But the prices are coming back to normal for a couple of reasons.
First is production volume is higher (as you mentioned), but also the 4th quarter was an expected demand pocket because ppl were waiting to for the $7500 tax credit that started in the New Year. So ppl were holding off buying In general, and higher interest rates added to that.
But let's keep some perspective, Tesla is still #1 by far in the US with 2/3 of all EV sales.
The Model 3 & Y are true sports sedans/ crossovers with great acceleration, handling, steering and braking. The Performance models are especially fun to drive. Plus Teslas also have the highest safety and crash test scores in the industry (most ppl don't realize that)....and obviously they have excellent tech that keeps getting better with updates.
Finally the Supercharger network is a huge competitive advantage because it's reliable and seamless.
So overall Tesla is still in a strong position and will be selling close to 2 million cars this year globally. That's without the Cybertruck that has a huge waiting list.
Yes, The $7,500 tax credit is huge. This will force used prices down by ~$7,500 automatically (plusTesla recently dramatically lowered prices as well). With the federal tax credit, the base Model 3 is now $36,500! The base Model 3 Performance is $46,500
Most people don't buy cars for "fun" factor. So yeah acceleration, handling, etc. Only appeals to enthusiast, and in any industry enthusiasts are always a minority. At this point, all enthusiasts already most likely own Teslas.
Also remember, every manufacturer have their loyal customers, and now all the major manufacturers offer really compelling EV options. So Tesla is going to be stealing less and less marketshare from competitors, compared to a few years back when Tesla was pretty much the only real choice for EVs for anyone who didn't want a Nissan Leaf.
What's happening to Tesla is normal for any first mover in any industry. The points Doug raised and the ones I mentioned above are also why even the stock price is falling to in my opinion it's true or normal value. Investors are finally acknowledging the absurd valuation.
Tesla will dominate the EV world, everyone on here that that says otherwise is mistaken.
Sincerely,a VW EV owner
@@sorinelpustiu5674 I think you are mistaken. Tesla already dominates the EV world, but their dominance is reducing. Look at the EV marketshare numbers over the past few years.
And again that's normal in any industry. Same thing is happening to Netflix in the streaming industry, and it happened to Facebook in the social media industry. Multiple examples in the consumer electronics industry
You have to admit that Tesla does not have near the same market share or pull it used to have. Dropping stock and prices are an obvious sign of it
Go to 1:12 to skip cars&bids ad.
I cancelled my Cybertruck pre-order due to better, cheaper options that are available now. Other auto manufacturers are catching up and surpassing Tesla in their electric offerings.
Maybe if you live in California. I'm Texas every ev besides Tesla is useless
Just find a body style you like and have evwest* I think they're called electrify it for ya.
Imo electric vehicles shouldn't be available to the general public. They all can be made way too powerful, too heavy, and the average motorist is much less attentive.
And they're not better for the environment than just maintaining a normal car for it's lifetime.
@@theanimerapper6351 plenty of Texans drive the stupid looking VW. All females driving too fast on the right or too slow on the left lol
@@theanimerapper6351 how does living in Texas make other ev useless?
@@mg6192 less non Tesla charging spots
I agree but I think competition catching up has a bigger factor than anything. In my opinion the Ioniq 5 is a better car all around compared to a model 3 or Y. It charges faster and has more things that non tech savvy people are going put in front of all else.
Ahahahahaha, good one.
It used to be a joke that the competition is coming but it's starting become true.
It's probably the only possible competition Tesla has, but in the marketplace there will still be 10 Tesla's sold for every ioniq available on dealer lots with markups.
I agree. The only problem with Ioniq5 is that it's made and sold by Hyundai (big problem). And the EV6 is made and sold by Kia. Not good things in their favor. But better vehicles than the Teslas? For sure! Would I still buy an EV6 or Ioniq5 over a Model 3 or Y? yep, not even a contest... Hyundai or Musk? That's like Hillary vs. Trump. I'd hold my nose and pick Hyundai for a BEV.
In the automotive market, you don't need to be the pioneer, being a fast follower is also very lucrative. Korea also has been funding electric cars for some time, and Hyundai and Kia have a far bigger distribution network - worldwide. The first to give away wallboxes will win...
I think some of it is market saturation. EV's are starting to become more and more mainstream, so as their availability becomes more accessible to "everyday people" the value will decline as there is more market competition.
Market saturation in that everyone who wants or can practicably charge and use an ev has one…
@@chir0pter Agreed. Home charging and public charging stations are becoming commonplace.
More EVs becoming available is taking sales from ICE cars , not from tesla
@@flavioa6351 ICE cars will be around for a long, long time. I do think electric is the future, but it's not going to be as fast as people think. Change takes time.
@@JamesPSmith1980 You just need to look at the age of the current car fleet to see what that will be, there's lots of 15 year old cars still, far fewer 20 year old cars, and very sparse 25+ year old cars. So, if the last new ICEs get sold in 2035, I think there will still be a pretty sizable population of them in 2050, but in 2060 they will be a pretty sparse sight. To a point I think better and better EV offerings over time could lead to a slightly premature retiring of a lot of vehicles, so the effective end of the line could be well before 2060.
Competition... everyone makes an EV now and some are "better"? No longer do you have to settle on a 4dr sedan with Tesla. You can get SUVs or Trucks or even a sedan but with a different manufacturer and cheaper.
I think the Musk factor is huge. I've thought he was a jerk for years (since he said we were all going to Mars and would be sending our cars out at night to act as "Robotaxis"). 2022 was the year when it finally dawned on the masses. There is huge animosity to the brand out there now (especially among his key customer base, as you rightly point out). Tesla could stil make it, but they need to get rid of Musk urgently.
Spot on. People are so gullible, but the pendulum is swinging too far the other way as well. TESLA will be fine because of their basic engineering and control of supply, but they were really over hyped then, but now I feel Musk is over panned.
Hope Doug is braced for the backlash from Musk cultists and fanboys. Some of them get so touchy for any criticism of Tesla.
Elon's army of dick riders.
Now we need a video on why there are so many Rivian R1S's on Cars & Bids
Same reason as with the broncos... People were buying them and flipping them.
I believe there is a waiting list for rivians, which will drive up prices for people who want one NOW.
Yeah once the hype dies down after a few months prices start coming down hard
Cheapest Tesla within 200 miles of me is $32,000. I guess that's good. When I got my Bolt the cheapest I could find was $25k. Last time I looked they were $40k.
Got my 2017 Bolt Premier for $15k back at the end of 2019 and have loved it so far.
I think a video titled "So you're thinking about replacing your Tesla..." would do really well. I'm coming up on 100k miles on my 2018 3P and I have no idea what cars are better in terms of performance, driver assist, and overall tech. Especially for the same price range.
Just keep driving it. Eventually the fuel savings will pay for the entire cost of the vehicle.
I am at 129k on my 2017 S 100D which I bought new. Two door handles and one suspension airbag replaced in that time. Range within 4% of original and see no need to change. Legacy makers have lots of interior luxury but rubbish range/huge cost and no Supercharger network. And in the Summer charge my card for free from Solar Panels.
I just bought a Tesla Y and love it. The software that operates the car is amazing and the comfort and drive-ability is fantastic. No buyer's remorse here.
Until you have to pay $20k to replace the battery? Deferred remorse.
@@adventurer3645 The battery is warrantied for 8 years and expected to last at least 10. I don't think many Model Y buyers will keep their vehicles for 10 years, something shinier and newer will arrive before then.
@@Error6503 how does it save the environment then ?
Bought a TesTICLE LA Dude?? No Brainer Dude
Key words "just bought". Not to rain on your parade, but next time you buy an expensive car you should explore other options first. The germans really know what theyre doing for instance.
Mind blowing that Doug filmed this before Tesla slashed prices. If the market for used Tesla's had already crashed, what do we call what's going to happen in the next few days and months?
Well put Doug, and I agree with all but would not downplay the importance of the supercharger network. Tesla is the only EV I would travel long distance with today, hopefully that changes in the future.
What are you talking about? I do massive road trips with my Bolt EUV. The non tesla charging networks are completely fine.
I don't know how much it effects but maybe people have started to notice the build quality and cost cutting that Tesla has done. It wasn't long ago when videos started circulating about a performance model not having Brembo brakes at the rear anymore, only a bolt on Tesla branded plate on top of a smaller cheaper brake caliper and smaller rear discs.