Buy Hold Rant
Tesla's lower priced Model 3/Y might hurt existing owners
10/8/2025, 10:33:08 PM
Economic Summary
- Tesla (TSLA) is selling a $36,000 Model 3 eight years after promising a $35,000 car; adjusted for inflation the speaker estimates the original price equates to the high $20ks, so Tesla is roughly a few thousand dollars off earlier nominal targets.
- The lower price point increases affordability and could expand Tesla's addressable market and new-customer adoption, but it also risks compressing unit margins if costs aren't proportionally lower.
- Cutting list prices can materially devalue existing inventory and used cars (Model 3/Model Y), creating negative resale impacts for prior buyers and potential reputational effects if owners feel penalized.
Bullish
- A $36,000 Model 3 (inflation-adjusted close to original targets) improves affordability.
- Lower entry price likely broadens demand and new-customer adoption for Tesla.
Bearish
- Price cuts devalue existing Model 3/Model Y resale values, hurting prior buyers.
- Tesla missed its original $35k/$25k price promises when inflation is considered.
- Frequent downward price moves can compress margins and upset current owners.
Bullish tickers
TSLA
Bearish tickers
TSLA
TSLA
Bullish
Achieving a roughly $36k new Model 3 increases affordability and should broaden demand and adoption for Tesla vehicles.
Bearish
Price reductions devalue existing Model 3/Model Y resale values, frustrate prior buyers, and may compress margins.
People mentioned
Elon Musk