Tesla Paint Price Increases Discussion
Automotive

Tesla Paint Price Increases Discussion

By patrick_y · Aug 5, 2018 · 12 replies
patrick_y
WPS member · Automotive forum
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Patrick_y initiates a critical discussion on Tesla's pricing strategy, specifically focusing on the rapid and significant increases in paint option costs for Model 3, S, and X vehicles. This post provides a detailed timeline of price adjustments, highlighting the impact on consumer perception and Tesla's market approach.





Tesla Model 3 vehicles when first launched in 2017, it came with the following paint options:

Launch Date till June 2018
1.  Black: $0
2.  Midnight Silver Metallic: $1000
3.  Deep Blue Metallic: $1000
4.  Silver Metallic: $1000
5.  Pearl White Multicoat Metallic: $1000
6.  Red Multicoat Metallic: $1000

Pricing increased for all Model 3 Pearl White Multicoat and Red Multicoat and a new color was added in late June 2018.

Late June 2018 till early August 2018
1.  Black: $0
2.  Midnight Silver Metallic: $1000
3.  Deep Blue Metallic: $1000
4.  Silver Metallic: $1000
5.  Pearl White Multicoat Metallic: $1500 (new pricing)
6.  Red Multicoat Metallic: $1500 (new pricing)
7.  Obsidian Black Metallic: $1000 (new color offered)

In Early August 2018, pricing was changed on all Tesla Model S/3/X. 

Early August 2018
1.  Black: $0
2.  Midnight Silver Metallic: $1500 (increase of $500)
3.  Deep Blue Metallic: $1500 (increase of $500)
4.  Silver Metallic: $1500 (increase of $500)
5.  Pearl White Multicoat Metallic: $2000 (new pricing, 2nd increase in less than 8 weeks)
6.  Red Multicoat Metallic: $2000 (new pricing, 2nd increase in less than 8 weeks)
7.  Obsidian Black Metallic: $1500 (new color offered)

Notice the pricing of metallic paint jumped to $1500.  This is generally more expensive than metallic paint options offered in USA on Porsche, Mercedes-Benz, and BMW. 

How incredibly frustrating this must be for many people who are deciding to order their cars, or were not expecting to have to order their cars for many months (due to the long delay on Model 3).  Would you be put off?  I was considering to order a Pearl White Tesla, and the cost on Model 3 has gone from $1000 to $2000 in the period of only two months! 

Is this a disservice to the customer?  And does this show Tesla's desperation to maximize profits at the expense of the consumer?  While I can't say it's necessarily "unethical" for Tesla to raise the price as it sees fit, but it is just another way for Tesla to raise the price by de-feature-ing the car so they can charge you more for it later.  Maybe they plan to do that soon? 

While it might not be unethical of Tesla to raise the price however it sees fit, is it fair to the consumer to have a constantly moving price target?  The constantly changing price is like inflation in a time of calamity. 

Not cool Tesla.  I'm a stockholder in Tesla, and while I expect healthy returns on my investment, I don't think you're going to get goodwill from consumers like this.  This is your first mainstream car, don't upset the mainstream audience.  As a consumer myself who is considering to order a Tesla Model 3, I know I'm put off about the constant change in pricing.  Frankly, I feel Tesla is punishing me; three different prices from the beginning of June 2018 till early August 2018.  In less than 8 weeks, the price of white paint has had three price tags! 




The price of Red Multicoat and White Multicoat was $1000, then $1500 in late June 2018, now $2000 in early Aug 2018! BMW 3-series only charges $550 for their "Mineral White Metallic" in the US Market. Mercedes-Benz C-Class charges $1515 for their Designo Diamond White Metallic paint in the US Market.




The price of silver has gone up from $1000 to $1500 in Aug 2018! Mercedes-Benz charges $720 for silver in the USA market, Tesla is 2x!




The price of mineral grey has gone up from $1000 to $1500. BMW would only charge $550 for this paint color, Tesla is nearly 3x!


Key Points from the Discussion

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The Discussion
PA
PalmSprings
Aug 5, 2018

Tesla is going through certain changes and has to adjust. It's obvious things didn't go as planned and they have to do something. Do you want the prices to remain the same, Tesla getting in trouble and you saying goodbye to your investments while they plummet? The market can bear the extra 500-1k.

CA
cazalea
Aug 5, 2018

Things like this really aggravate me. OK, for Henry Ford BLACK can be "the only color" but this is now 100 model years later, and with Tesla even WHITE costs money. That irritated me when I started to spec out a Model 3 online. And with some exception for metallics and difficult colors (orange or yellow) I think paint upcharges are just customer ripoffs. OK, fine if they want to charge for two-tone (think of Mini or Ford Flex models, and some DS and Volvo V40) but for the rest - no way - unless

HU
Hulk
Aug 5, 2018

Of resin prices over the last 18 months. I'm familiar with the rates and they have increased substantially even in the last 6 months. But based on volume used of resin and the sqm it's a bit disproportionate. Cheers S

PA
patrick_y
Aug 5, 2018

I hope the market will bear it, I have far more to lose in my investment than the $500-$1000 in my own car. The whole reason why I put the fact that I'm a stockholder in the company is to say that I benefit from Tesla making more money. And I support Tesla making more money. But despite this raising the cost of the paint probably makes more money, I would caution against this short term gain as it may rub some consumers the wrong way. It's not a very fair thing to give consumers a constantly cha

PA
patrick_y
Aug 5, 2018

Kind of hard to believe that they'd need to change the price twice, only six weeks apart from one another. Other car companies haven't raised their paint prices. The price of cobalt hasn't even gone up that much. And that car uses a lot of expensive, mined in conflict zone, and very rare cobalt. Tell me more about resin prices increasing. I need to paint my home too, come to think of it; I wonder if exterior house paint has increased much in the past several months.

PA
patrick_y
Aug 5, 2018

I hate it when they do that. I also hate it when contractors do that. I feel that I need to audit every contractor these days to make sure that they're not skimping in materials and that they're not going to do some last minute price inflation after we already have an agreement. In your case, I'm glad that you didn't buy another car. From what I hear about your car collection, it seems the LAST THING YOU NEED is another machine in your driveway! You don't seem to be an especially high mileage dr

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