What effect will Brexit have on the price of Tesla’s various electric vehicle models in the UK? Yes, I know, of all the things to consider with Brexit, this is really not that important…. But as that’s what we discuss here on EVObsession, the topic seems a good way of broaching the news.
There was of course a significant drop in the value of the British Pound following the news of the “Leave” vote winning, but this was to be expected — markets are notoriously volatile with regard to this type of news, and such events make good opportunities for unscrupulous sorts to take advantage of the predictability of group-think.
There will also be a recovery in the value of the British pound — over the coming days and weeks. Where exactly the value will end up stabilizing (to some degree obviously, not completely) is hard to tell at the moment — but the doomsday scenarios laid out by some in the “Remain” campaign clearly don’t seem to be in the cards at this point….
So, will Tesla’s offering end up more expensive than previously? What will the local sales price of the Model 3 end up being? Will the Model S and Model X see a notable price hike?
Spurred by a topic thread begun by “Lokolo” on the Tesla Motors Club forum, there were a number of interesting comments made on the subject that seem worth highlighting here.
“WannabeOwner” made some good points:
I’m sure opinions are varied, and some/many strongly felt.
I would rather not have the uncertainty (for 2 years for sure, quite possibly 4 years …) which will play havoc with commerce. The disappointing thing, for me, was that I didn’t hear anyone in Remain banging a drum of “These are the amazing things that will benefit us if we stay in Europe” — the only thing I remember is Jeremy Corbyn saying that workers-rights would be better protected. Everything else that I heard Remain (and people in lofty positions outside the UK) saying was “If the UK leaves it will be a disaster because REASON-X” — all Fear, Uncertainty and Doubt
I see no sign of the sweeping emergency budget that Osborne touted would happen immediately, penalising the rich etc. etc.
I agree with Tony that the currency market will recover — Sterling started the day at US$ 1.48875, fell to 1.32383 (-11%), recovered to 1.39408 (-6%) and is currently at 1.37062 (-8%)
Lots of people (most even, maybe?) I talked to were choosing based on their personal, short term, circumstances. I’m of an age where short term poor economics may dramatically effect my retirement prospects, but I don’t want Great Britain to be part of, and my children’s children growing up in, a European federalist government and a culture changed dramatically and skewed by too large an influx of other nationalities.
I think: it would of been better if we were the Second country to vote Leave, rather than the First :p but there is the real possibility that other countries will, now, voice their unhappiness about the EU in a similar fashion and, if that is the case, then i think it will ease our path — or the EU will change its tune and that will sway the majority of the sceptics
Here’s a thought, for the brave: Stuff the money that you were planning to spend on the Model-3 in the FTSE-100, and cash it in when it has recovered enough to pay for the then-price of the car … bargains a-plenty to be had today
No argument there. I’m sure that there are a great many people setting themselves up for a nice payoff over the coming years right now….
It’ll be interesting to see, though, what Tesla’s tact as far as the Model 3 ends up being. Presuming that the pound mostly, but doesn’t fully, recover to pre-Brexit highs, will Tesla go with its previously rumored UK price point? Or a different one?