Deep Dive
Shownotes Transcript
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Hey everybody, welcome back to the Elon Musk podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla, X, The Boring Company, and Neuralink. I'm your host, Will Walden. How low are Tesla's prices dropping for the Model Y? And also, what's driving these new discounts? And is it worth holding out for the updated Model Y known as Juniper?
Also, Cybertruck is seeing some price cuts just months after its launch. Let's unpack these details and explore what this means for Tesla and more importantly, what it means for you, the customer. Tesla is rolling out significant discounts on select Model Y inventory vehicles in the United States.
fueling interest among buyers seeking lower prices for one of the most popular electric vehicles on the market. The discounts arrive as Tesla prepares to release the anticipated Juniper update to the Model Y later this year. And the current discounts make some Model Y configurations cheaper than ever, a move likely intended to clear existing inventory before the updated model debuts.
Now, the Model Y's importance to Tesla cannot be overstated. According to Kelly Blue Book, the Model Y was the best-selling electric vehicle in the United States in 2024.
far outpacing its competitors. When combined with the Model 3, Tesla's two most accessible vehicles accounted for over 40% of the U.S. electric vehicle market last year. Now, the dominance has solidified Tesla's leadership in the EV sector, but it's also created challenges as competitors like Ford, Rivian, and Lucid Motors continue to narrow this gap.
Current discounts of the Model Y inventory are particularly noteworthy for their pricing, which in some cases brings the vehicle's cost below $40,000. This price includes the $7,500 federal EV tax credit, which applies to many Tesla models. And for example, a long-range all-wheel drive Model Y in stealth gray available through Tesla's inventory page is listed at $38,570 before taxes and fees.
It's nearly $2,000 less than the same model ordered directly from Tesla's build-to-order system, where it's priced at $40,490. These inventory-specific discounts effectively reduce the cost of the all-wheel drive Model Y to levels typically associated with Tesla's lower-priced rear-wheel drive variant.
Buyers looking for an all-wheel drive Model Y, which offers better handling and performance, may find this an attractive opportunity, especially with Tesla's straightforward ordering online, which makes the deals really easy to spot. Go check them out right now at Tesla.com.
Leasing options are also more affordable for discounted Model Y inventory. A standard lease for an all-wheel drive Model Y is around $399 per month before taxes and fees. However, discounts on inventory vehicles allow Tesla to offer slightly reduced monthly payments, with some leases dropping to about $10 less, $385 per month. While this may seem like a small difference, though, over a typical three-year lease term, it adds up
to meaningful savings for cost-conscious customers.
Now, it's essential, however, for potential buyers to understand that these discounts apply to the current version of the Model Y, which Tesla first launched in March of 2020. And while the vehicle remains a top seller, it's no longer Tesla's newest design. It's been updated. There's a Model Y called the Juniper, which is announced earlier this month in China and is expected to bring notable improvements when it arrives in the United States, though the exact timing remains unclear.
The Juniper update is widely believed to include both interior and exterior design enhancements, similar to the changes Tesla made to the Model 3 in 2023. And while many details remain speculative, analysts suggest that the updated version will appeal primarily to returning Tesla customers rather than first-time buyers.
Many customers for the update will be returning Tesla owners. This suggests that the discounts on the current Model Y are likely aimed at enticing new customers into the Tesla ecosystem before the refreshed model arrives. Now beyond the Model 3, Tesla is also slashing prices on the recently launched Cybertruck, the electric pickup that has drawn equal parts fascination and criticism since its unveiling.
The Cybertruck, which first rolled off production lines in late 2023, has faced numerous challenges, including delays, production bottlenecks, and criticisms of its unconventional design and also its tow hitch being ripped off on some YouTube videos.
Tesla's website now lists discounts of up to $1,600 on new Cybertrucks configurations, bringing the starting price of the vehicle to $72,890. In demo units, vehicles used for test drives or display purposes are also seeing steep price reductions, with discounts reaching as much as $3,410 off.
Even with these markdowns, though, the Cybertruck remains far more expensive than initially promised. Elon Musk said it was going to be around $40,000, but the figure has been abandoned and the production costs have soared. So $80,000-ish is what you're going to get a Cybertruck for, so about double the price. So reports suggest that Tesla is grappling with significant production challenges at a Skiga factory in Texas, where the Cybertruck is built.
And some Tesla employees have even been reassigned from the Cybertruck assembly line to focus on manufacturing the Model Y, Tesla's top-selling vehicle.
It's important for the Model Y to continue to grow, and it's the biggest part of Tesla's bottom line, especially as the company navigates increasing competition in the coming years. Now, the Cybertruck hasn't been a smooth launch. Since its launch, vehicle has faced criticism for the exterior. Of course, it's weird looking on the road. It's big. It's bulky. It's
angular, and it's been prone to rust and spotting. In December, Tesla recalled 70,000 Cybertrucks due to issues with the tire pressure monitor system, marking the seventh recall for the sharp-edged electric pickup. But despite these setbacks, the Cybertruck remains a cornerstone of the product lineup, even as its polarizing design continues to divide public opinion. Now,
Price wars within the EV market have added another layer for Tesla. Legacy automakers Ford, General Motors, and Rivian also, and Lucid, the new guys, have been aggressively competing on price to capture market share. For Tesla, which has historically positioned itself as a premium vehicle,
These market dynamics have necessitated more frequent price adjustments. This counts on the why, and the Cybertruck also raised questions about demand for Tesla's vehicles. And while Tesla has consistently ranked among the top-selling EV brands, the company has faced slowing sales growth in recent quarters, especially in regions like China and Europe. Endless have speculated that these price reductions may be a strategic response to waning demand as Tesla seeks to maintain its competitive edge.
But for potential buyers, the question of whether to take advantage of current discounts or wait for new models remains a central consideration right now. While the current Model Y offers excellent value with its reduced price, the upcoming Juniper update may sway some customers to wait for the latest features and design improvements. Meanwhile, the Cybertruck's price cuts could make the pickup a more attractive option for those willing to overlook its design and production hiccups.
It's a weird looking truck compared to other vehicles on the road, but some people love it. And Tesla's strategy will likely hinge on how well the company can balance its existing product lineup with its plans for innovation and expansion.
The Model Y and the Cybertruck are two different aspects of Tesla's approach. The former is a proven volume seller, and the latter is a bold statement and an experiment that will redefine electric vehicles for the future. My dad works in B2B marketing. He came by my school for career day and said he was a big ROAS man. Then he told everyone how much he loved calculating his return on ad spend.
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Now, if you want my take on this, you can go to Discord. We have a Discord. You can check it out in a link in the show notes. But I'm going to give you a little taste here. Let's talk about this in the Discord because we can have a bigger conversation about this. I am a big fan of the Model Y. I almost pulled the trigger on a Model Y just about six months ago. And I held off. I don't know why, but I held off on it. I currently...
I am looking into the Juniper. I'm waiting for the Juniper to come through and I've seen all the improvements to the model Y and I will pick up a Juniper when they launch. It's going to be a great car for a family. I have a family now and the, the Cybertruck, which we talked about in this episode is,
Not so great for me. It's a big car. I have a small child, you know, large vehicle, very impractical for that. But it's a statement. It's a fashion piece, if you will. You show up at any place with that truck and people are going to look at you.
And I'm okay with that. But the Model Y seems to fit my style a little bit more. I like a coupe and I like a sedan. And the Model Y is a great vehicle for the price. If you get an older Model Y, that's a great deal right now.
So check out Tesla's website for any deals you can get. Just keep checking back every day. They might post something new. And I know when I was looking for mine, there were deals going on where I could have gotten probably I was, I think it's about 2500 to 3000 off.
when I was going to buy mine and I just didn't pull the trigger. I, there's something going on and I've heard about the Juniper. I heard they were going to refresh the model Y. So I just had to, I waited a few months. And then by that time I was also going to pull the trigger and I stopped and I stopped myself and I was like, there's got something new is going to happen. The refresh is going to happen. So I got to wait. I thought it was either going to be that or like the $25,000 Tesla that we've all been hearing about.
So I just held, I hold, hold, hold. And then now the Juniper is coming out. So that will be my next vehicle. That's my plan. So if you want more information, go to the Discord link in the description or show notes. Also, thank you so much for all the continued support.
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