Buzz
Elon Musk's market-share-grabbing discount policy is facing fierce criticism from loyal customers.
According to Fortune, Tesla's aggressive price cuts to gain market share may seem like good news for potential electric car buyers, but for Elon Musk's existing customers, it's nothing short of a 'scam'.
It's worth noting that in 2019, Elon Musk boldly claimed that Tesla customers purchasing the Full Self-Driving (FSD) software package were essentially 'buying an appreciating asset'.
'In the future, if we manage to produce all electric vehicles with the FSD software package as planned, the value of each vehicle could reach $100,000-200,000,' Elon Musk tweeted at the time.
However, with the current price reductions, those who believed in Elon Musk's promise of 'buying an appreciating asset' are feeling deceived.
Never Buying from Tesla Again
The regret of waiting a bit longer for a cheaper purchase, along with the significant depreciation of one's own product, has led countless Tesla customers to criticize founder Elon Musk.
With the possibility of further price reductions from Tesla due to increasing market competition and to benefit from government subsidy programs, many owners of Elon Musk's electric cars have voiced criticism against the planet's richest billionaire.
'Tesla deceives customers by slashing prices by over $20,000. I bought a Model S Plaid just one day before the price drop, drove less than 100 miles, and lost over $20,000. NEVER BUYING FROM TESLA AGAIN,' one of many tweets on Twitter-X stated unequivocally.
Not only are there steep discounts of up to $18,500 for models like the Model S Plaid and Model X SUV, but Tesla has also heavily discounted a range of Model S and X vehicles.
Consumers can now purchase a Model S for just $74,990 or a Model X for $79,990, which is $3,500 and $8,500 cheaper respectively compared to just a week ago.
Even Tesla has now abandoned charging fees for color choices as it did before.
As a result, countless former buyers of Elon Musk's vehicles are outraged at being disregarded without any compensation policy from Tesla.
Losing Trust
'Such steep discounts are unfair to loyal customers who have supported Tesla from the early days,' a post on Twitter-X expressed.
'I just bought a Model S today but I have to admit this discount is terrifying. Somehow Tesla will lose a considerable number of its loyal customers,' another opinion echoed the sentiment.
Buyers of Model S and X in early 2023, who paid $104,990 and $120,990 respectively, are now witnessing their electric vehicles being $30,000-41,000 cheaper.
The consequence is that even those who want to sell their used Tesla electric cars have to lower their prices, suffering from the depreciation of their 'assets'.
'Why can you do this to your loyal customers, Elon Musk?' an outraged user vented on Twitter-X.
Many customers are currently suggesting that Tesla release free upgrades or reduce electric charging fees for those who purchased the company's products before the discount periods as a form of compensation. However, Tesla has yet to take any action.
Not the First Time
According to Fortune, this is not the first time Elon Musk has faced criticism for lowering the prices of electric vehicles.
In January 2023, Tesla's aggressive price cuts to spark a price war left numerous customers displeased.
'I feel like I've been swindled, like I'm a foolish customer being taken advantage of. My electric car has depreciated by a whopping $13,306, and this steep decline will make many product owners uncomfortable,' a Model Y owner told Bloomberg.
In addition to lowering prices, Tesla has also reduced the price of Full Self-Driving (FSD) software from $15,000 to $12,000.
*Source: Fortune
