"Sell a car at market price?"... Tesla frustrated by elastic pricing

Consumer Complaints on Rubber Band Pricing Policy
"Focus on Quality and Infrastructure Improvement"

"How can they sell cars at some random market price? This is not even 'Hoesla'."

Consumer dissatisfaction is growing over Tesla's elastic pricing policy.

On the 13th, the Consumer Sovereignty Citizens' Council stated, "Despite Tesla facing backlash recently due to the Model X fire in Seongsu-dong and fines for false advertising, it is undesirable for them to continue policies that mock consumers," adding, "Tesla should stop inconsistent business practices and prioritize quality and infrastructure improvements."

Consumers in the automobile market are giving Tesla nicknames like 'Hoesla' to express their dissatisfaction with the pricing policy. Since the automobile market involves various factors such as depreciation by model year, reckless pricing policies can cause significant confusion among consumers.

[Image source=Tesla]

Unlike last year when Tesla significantly raised prices domestically, this year it lowered prices of major models by about 12%. The Model 3 was adjusted to 64.34 million KRW (8.5%↓), down 6 million KRW from the end of last year, and the Model Y Long Range was reduced by 11.65 million KRW to 84.99 million KRW (12%↓).

The same trend is seen overseas. In Japan, for the first time since 2021, prices of the Model 3 and Model Y were reduced by 10%, and in Australia, prices of both models were also lowered. In Singapore, there is even a promotion offering discounts on inventory vehicles of the Model 3 and Model Y.

Consumers who purchased Tesla vehicles just a few months ago ended up paying several million KRW more than the current prices.

Because of this, some people in China who did not receive discount benefits have protested. On the 6th, Tesla implemented its second price cut in three months in China. The discount rate for all models, including the Model 3 and Model Y, was increased from the previous 6% to 13.5%. The Model 3's lowest price dropped from 265,900 yuan (49 million KRW) to 229,900 yuan (42.44 million KRW), and the Model Y's price fell from 288,900 yuan (approximately 53.34 million KRW) to 259,900 yuan (approximately 47.99 million KRW).

[Photo by AP]

The market interprets Tesla's sudden price cuts as a response to sluggish sales. It is seen as an effort to clear inventory.

In December last year, Tesla delivered 55,796 vehicles in China, a 21% decrease compared to the same period the previous year. Domestic sales are also declining. According to the Kaizyu Data Research Institute, Tesla Model 3 sales in Korea from January to October last year totaled 6,965 units, a 28% decrease compared to the same period the previous year. During the same period, 6,073 units of the Model Y were sold, a 10% decrease.

The Consumer Sovereignty Citizens' Council pointed out, "Tesla's recent business behavior shows no consideration for consumers and focuses only on sales and business aspects," adding, "Existing buyers who missed out on benefits due to timing differences, depreciation and price confusion in used cars caused by new car price cuts, and confusion among prospective buyers about purchase timing are actions that erode consumer trust in Tesla." They emphasized, "Tesla must quickly unify prices and strive to improve quality and infrastructure to repay consumer trust."

This content was produced with the assistance of AI translation services.