> This actually a price increase because of a loss of the federal tax credit... the title is bogus and should be changed imho.
The ceiling in the title refers to a ceiling of what customers are willing to pay. Tesla apparently believes customers won't pay the full price without incentives, so they're cutting the price they charge you.
While it's an increase in the sense that the government stopped making it cheaper for you to buy a Tesla, it's still a decrease for Tesla as a company, and that's what has investors nervous. (Rightfully or not is another story.)
As of today Teslas cost $1,750 more than yesterday. It is effectively a price increase in the US. The tax credit went down, raising the price by $3,750. Tesla lowered the price by $2,000.
$3,750 - $2,000 = $1,750
This doesn't signal a ceiling for price as the title implies. I implore the mods to change the title. It's misleading clickbait.
You can tell from the url the original title was much more reasonable...
"Tesla cuts prices as model 3 deliveries narrowly miss estimates"
I clicked on the title ready to judge it as click-bait like yourself, but I think the text makes a good point that the majority of reservation holders seem to be willing to wait for their $35,000 Model 3s. Too bad they didn't get their $7,500 tax credit though.
I agree. At first glance, the "price cuts" wouldn't seem to signal anything. But the price cuts combined with the outstanding reservations does seem to imply more cost sensitivity than we have seen in prior Tesla sales.
The ceiling in the title refers to a ceiling of what customers are willing to pay. Tesla apparently believes customers won't pay the full price without incentives, so they're cutting the price they charge you.
While it's an increase in the sense that the government stopped making it cheaper for you to buy a Tesla, it's still a decrease for Tesla as a company, and that's what has investors nervous. (Rightfully or not is another story.)