Tesla passion versus prices

Black back end of tests model 3
 
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Tesla Passion versus prices, the last twelve months has seen a lot of variation with prices for Tesla’s in not only Australia but across the globe. 

Prices going up in some countries and dropping dramatically in others. Just over 6 months ago a significant price drop occurred with the Australian Model 3. This allowed an increase in Tesla fans to get into the well-loved vehicles. 

However, this is just a drop in the ocean of passion versus prices for Australians. We have a number of political challenges that are not encouraging ownership of electric vehicles except in the most ironic place in Australia. 

It turns out the home of the federal government has some of the best incentives for owning an electric vehicle. Yet the federal governments apathy when it comes to environmental and EV policies is telling. 

Current situation

Currently in Australia Tesla has taken a step back by only being able to deliver Model 3’s.

Ordering other vehicles is still possible but deliveries will not occur until 2022 at the earliest. 

Model S and X are both targeted for 2022 and seems counter intuitive.

The Cybertruck, with its hundreds of thousands of orders, is targeted for release to the USA later this year. I would not expect to see any Cybertrucks in Australia till 2023.

However, I believe that the missing link to Australia having a greater uptake, is the Model Y.

Australia has been teased by the Model Y for a while now. A vehicle that I believe will be a game changer for the Australian marketplace if priced correctly. 

Australia is passionate about its four-wheel drives and SUV’s. Tesla has touted the Model Y as an SUV and this has been demonstrated by the positive reports from owners across the globe. 

However, in Australia we are yet to be able to order the Model Y. Why???

Prices

Tesla passion versus prices, currently in Queensland Australia you can purchase the standard range plus Model 3 for just over $70000AUD. But I do not believe that will be the case moving into 2022. 

The Australian dollar has been over the last 12 months on an upward trend. The last time the prices were changed for the Tesla vehicles the Australian dollar was around the 70-cent mark. 

Currently it is around the 77cent mark. 

This is a significant change in buying power compared to the American dollar. Yet no price change has occurred.

In Japan recently Tesla dropped the price of the model 3 by approx. 25% as reported by the Tesmanian.com . This was to entice purchasing of more Tesla vehicles. 

Here in Australia the demand for electric vehicles is growing. However, with hostile government policies both federally and domestically, in some states, this uptake will, in the near future, begin to lessen until clear direction and goals can be set. 

Australian political issues aside. 

Model Y WHITE
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The Model Y is a mystery, an enigma and the next piece in the puzzle. It still is not available to order in Australia. It is hard to know where it will sit price wise in the range of vehicles. But if you look at the pricing in the United States it sits approximately $10000USD dollars more than the Model 3. 

This price difference is important to the future of the company but also to the strategy that I believe Tesla is driving towards. 

At the upper price level, you have the Model S and Model X. These have been strong performers for the Tesla brand for over half a decade. 

Due to the recent updates to the exterior and drive trains this vehicle is now not being delivered in Australia till 2022. 

This means that, in Australia, Tesla has no other vehicle being delivered except the Model 3. 

It does seem strange that only the Model 3 is available when the Model Y is right there for the picking. Why wait?

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My Theory. 

Tesla passion versus prices, I believe change is coming and soon for the Tesla line up. In the USA the Model 3 is priced around $35000 USD, with the Model Y at around $45000 USD. Followed by the Model S and X respectively above $80000.

When Tesla last dropped the Australia Model 3 price it landed the Model 3 around $70000AUD. This was a welcome and significant drop for any car company. But I believe there is more coming that will allow the lineup of Tesla’s to be available to all levels of society. 

The Mission of Tesla is to transition the world to sustainable energy and transport. 

To achieve this goal, it cannot just be USA that has prices that are affordable to the average person, it also has to be done on all continents. 

The dropping of price for Model 3 previously is just the first step in the realization of this mission for Australia. 

You see currently not everyone sees value in the Tesla vehicles because motivation to buy a $70000 dollar car versus a $40000 dollar ICE vehicle just isn’t enticing enough. Yes, they have a lot of features and benefits that ICE vehicles don’t but price wins all for the masses. 

So, the only way to really drive-up sales to achieve not only the mission but uptake of the vehicles is to adjust prices, so the Tesla fleet hits all markets. 

My prediction

In the next 6-12 months I predict, 

  • The Model 3 
    • will drop price by approximately $5000 AUD to almost $15000 AUD. 
  • The Model Y 
    • will then be made available to order 
    • will come in at the $75000 – $80000AUD 
  • Model S 
    • at the above $120000 mark
  • Model X 
    • will be available at the $150000 mark and above. 

This stratification of the vehicles will then allow a couple of future vehicles to slot in nicely. 

  • Cybertruck will align with the $80000AUD mark for the base model and go up from there to cover the $90000 – $120000 dollar mark.
  • Chinese made “Model 2” as it is affectionately known will drop in under the $40000 dollar mark. 

This will then give a clear run of vehicles at all price levels of the Tesla ecosystem. 


It is my belief that if this is to become reality Tesla would then have high demand, good long-term growth and a strong step towards reaching their mission to transition the world to sustainable energy. 

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Passion

Tesla passion versus prices, I have said for a long time I am a Tesla fan boy, but I also understand the benefit of all vehicle’s coming to market as not everyone will be able to afford a Tesla. 

But if I am right and my passion to help achieve the mission of Tesla as it is good for all, then I need to be able to see value in the vehicle as well.

Passion will only take you so far in a world that is driven by the almighty dollar. 

I hope that my assessment of the next 12 months pans out and more people are able to get into these amazing vehicles. 

If you are interested in Tesla and Want to know more check out my last Blog where is interviewed Ryan McCaffrey from Ride the lightning Tesla Unofficial podcast

Dave 

David McCann
David McCann

EV-HQ founder, passionate about sharing the passion for Tesla and Electric Vehicles everywhere.

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DAVE’S Blog posts

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Talking Tesla

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Ryan McCaffery

Last week I had the great pleasure of hosting one of the most well-regarded Tesla Podcasters out there. I talk of none other than Ryan McCaffery the host of Ride the Lightning the unofficial tesla podcast. It was a surreal and fun chat that both myself and Nash from Tesla in the gong enjoyed immensely.  

I first heard about Ryan in 2016 when I visited USA and experienced the Tesla Model X. The driver of the Model X mentioned Ryan’s podcast. I was hooked. I listened to all his past episodes and truly had a crash course in all things Tesla. 

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This education only enhanced my passion for the vehicles. When I arrived back in Australia, I booked a test drive of a model S. My wife who did not really know much about the vehicles was an instant convert. 

Like Ryan explained last week, you don’t really understand the difference from Internal Combustion Engine (ICE) vehicles until you test drive a Tesla. Once you do, you are hooked and, in most cases, never go back. This was true for Andrew the optometrist, my friend, and is true for so many more people in Australia and globally. 

So, last week, was a bucket list item that I can tick off. Ryan was a wonderful guest and very giving of his time and knowledge to all those that joined the chat. He is such a wonderful advocate of Tesla and by his own admission he loves the vehicles and their mission. 

Photo by Alexander Shatov on Unsplash

Lots to cover

Ryan, Nash (Tesla in the gong, and my cohost) and I delved into the world of Tesla by exploring subjects like the new refresh of Model S including the new steering wheel yoke. We also discussed the possibilities and challenges the new gear shifting could bring forward. 

Ryan recounted his origin story and talked about his co-host on the podcast “Daisy the Boxer Puppy”. He explained she had recently had some medical issues. Ryan was able to update us on how she was doing, and I am happy to say she is improving.  

Our discussion included Australia and a role that our country could play. Australia could help to produce batteries using the natural resources our country possesses.

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Australia

But as Ryan pointed out when asked regarding if Australia would be a possibility for a Giga factory, he aligned with current thinking in Australia and felt that the population would not support a Gigafactory, but a smaller battery production facility might be possible. 

Australia is a country rich with natural minerals and resources and the idea that we could play a part in production of batteries for the future battery packs would be a major step forward. However, nothing has been reported that this is occurring so we will just have to see. 

The audience also joined the discussion with their questions regarding Tesla India, Ryan’s day job at IGN and the crossover of video games into the vehicles of Tesla. 

Ryan oozes exuberance when talking about Tesla and it is without a doubt infectious for all those who surround him. We were swept up in the discussion and time certainly was not enough to dive into all areas of EV’s and Tesla.

Tesla Card
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Thankful

Nash and I both were truly thankful to Ryan for taking the time to talk with the Tesla and EV community in Australia and the audience were rewarded with great conversation and information. 

Clubhouse provided a great platform that allowed all to hear and as Ryan pointed out to us, we enticed him onto another social media platform. 

What today’s events showed is that the Tesla, and by extension, EV community is passionate about Tesla, they understand and are passionate about what the vehicles can do and how they are changing the world. 

Ryan is a genuinely nice and passionate guy who is happy to talk for hours about Tesla, his passion project. His podcast Ride the Lightning the tesla unofficial podcast has been a great source of information and fun for those of us in the community. 

I am very grateful for the opportunity to talk with Ryan today and I hope we have future chance to cross paths. 

Dave 

David McCann
David McCann

EV-HQ founder, passionate about sharing the passion for Tesla and Electric Vehicles everywhere.

DAVE’S Blog posts

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