In the United States right now Tesla Model 3 and Model Y are the cheapest they’ve ever been. Well not technically, the Model 3 has been cheaper, but not by much. And it was only for a few days. However, I think that may change very soon. I want to tell you why I think it’s going to change and why I think if you plan to buy a Tesla, you should be putting your order in as soon as possible.
Tesla has decreased their prices? Or have they sort of no? Well, actually decreased and increased. They first started off recently by decreasing their prices, as I have tried to tell you all they would for many months now. And I suggested it would probably happen in around January. Now, I’m not the only one who said this. There are many other people who said this. However, when it came to a time, tesla actually did reduce the prices of their electric cars; Model Y, model 3, Model S, model X. Yeah, pretty much every single model. The price was reduced in almost every country, massively in some places; by up to 30% in some places. The prices now are an absolute bargain. Now, if you live in Germany, if you live in Norway, if you live in France, if you live in the Netherlands, if you live in the United States, if you live in Canada, if you live in China in particular as well, there’s never been a better time to buy a tesla electric vehicle.
Now, if you factor in the rate of inflation over the last couple of years, then yeah, tesla vehicles are the cheapest they’ve ever been in all of those countries. It’s actually not even close. It’s really an incredible time. Now, because of this price pressure, Tesla is putting on other Automakers, they are sort of being forced to react. For example, the Ford Mustang Mackey has been reduced in price significantly. What about in China? Well, Nio has reduced their prices. Xpeng has reduced its prices. Neta has reduced their prices. I mean, almost every car company, almost every major electric vehicle, car company has reduced their prices. I mean, Toyota. Yeah, they’re not a major electric car company at all. But the BZ4X, I think it’s about $24,000 in China right now. Even though it was already cheap, to begin with, it was about $29,000. It’s now come down to $24,000 because it’s not really selling. It’s the 70th best-selling electric car in China. Toyota had to reduce its prices. Why? Because Tesla did. But it’s all starting to change. This won’t last long. I said this before. I said prices would go down, but they’re going to go back up again soon. There’s a key reason for this.
First of all, we already know Tesla has raised prices again in Australia and in China, and I believe in a couple of other countries as well, within the last 24 hours. Why have they done that? Well, I mean, what’s the point of continuing to sell your vehicles at these prices if your order backlog is now many months in advance? So Tesla has essentially created this situation where they made a huge amount of demand for their cars, and then they said, “Well, you know what? We don’t need to keep doing this.”
Places like Australia, where the price just increased. Tesla has many, many months of demand now. There’s really no reason to continue to sell their cars at that cheap price. Now, they still are.
They’ve only raised the prices by a little bit in China and Australia. However, I believe the United States is next. My suggestion is if you’re in the market for an EV, if you’re Arming and arring about to get a Tesla vehicle, I would place my order now. Now, if you lose your deposit because you change your mind, it’s not the end of the world, but most likely you’re not going to change your mind once you’ve driven one and you’ll stick with the order while the price goes up. Now, I could be wrong about this.
Of course, it’s possible, but I think it’s very, very likely based on the reality, which is that Tesla demand has been insane in January and therefore Tesla’s backlog has dramatically increased, that Tesla will raise prices. Now, keep in mind as well that Tesla has just increased the price of the base model Y in the US as well, by a little bit. Not by much. I believe these price rises will come even more now, especially since Tesla vehicles do qualify, in fact, they all qualify now for the $7500 electric vehicle incentives. Now, some of them won’t qualify for the entire incentive because the battery pack in some vehicles isn’t all made in the United States, but most vehicles will qualify. So my view is to get in now and place your order. If you change your mind, you can probably just follow through with the order and own the car for a few months, see if you like it, then you can sell it probably about the price you paid for it because the prices will very likely go up. Or, hey, if you love it, just keep it.
So that’s my buying advice. Many of you have emailed me saying, should I buy? Should I not buy it? Should I wait for the new battery technology? Well, I don’t believe this new battery technology is coming out for a while now. I think it’s going to be a few more months and I think it’s not going to be on mass yet in American-made vehicles. It’s going to come to Chinese-made vehicles first because, CATL’s factory is just around the road from Tesla’s factory in Shanghai. So for the US-made vehicles, I don’t believe you’re going to see any more advanced battery technology over the next six months in the US-Made cars. Therefore, time to buy Tesla is probably now. I don’t make anything from giving you this advice, nothing at all. There’s just zero benefit to me whatsoever. Basically, really what this comes down to is I’m just trying to give people a heads-up on what I think is coming.