Tesla passion versus prices

Black back end of tests model 3
 
Photo by Caleb Landon on Unsplash

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
Photo by Craventure Media on Unsplash

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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