Cheaper Teslas Are Hurting Profits, but Elon Musk Plans to Keep Slashing Prices. Here's Why

Business Insider2023-04-25

Tesla's profit margins plunged last quarter after the EV maker made aggressive price cuts.On an earnings call, CEO Elon Musk said he'd push ahead with the strategy.Musk could sacrifice short-term ...

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Comments

  • SPACE ROCKET
    2023-04-25
    SPACE ROCKET
    Imho, price cuts are good. For one, it benefits the mass market and gives people the incentive to buy an EV car over regular cars (good for the environment, isn't this what we want and where we intend to head?) Plus, price cuts ->more people buy Tesla -> more people get a feel and taste of how driving a Tesla is like and may get hooked on it, leading to them being permanent Tesla converts -> Parents drive a Tesla, future kids likely will too, you'd have generations of people driving Tesla -> Musk can earn from all the nitty gritties involved with Tesla after-sales products. Short term pain but long term gain. Not sure why people can't see it 🤷‍♀️
    • wigglyz: 

      short traders are leaning heavily on TSLA’s tape in AH trading, but it will not mean anything tomorrow, at the start of Pre-Market trading with legions of Big-Tech enterprising investors on the prowl — panning for bargains in the sector!!!

    • nimbly: 

      I’ll buy in but thinking this going down more still before the climb back to sun $200s

    • vippy: 

      Under 100$ by the end of this 2023

    • zinglee: 

      Tesla building lithium processing plant.

    • liyufighter: 
      👍
  • Vincentan59
    2023-04-25
    Vincentan59
    What his next step buy cutting the car price so aggressively??? 😵‍💫😵‍💫😵‍💫
  • Monkseal
    2023-04-25
    Monkseal
    I recalled Elon made a remark that EV vehiclesare to be economical for a bigger good. And he has other products for higher margin. Once the market is flooded with his EVs, there are still milking products like his charging stations. Why are analysts punishing Tesla when slashing prices is a good thing for the general Consumers? Profits for the top analysts/bankers over savings for the mass?
  • Frosty4ever
    2023-04-25
    Frosty4ever
    There comes a time when price cuts becomes counter productive. That is when customers withhold buying till further price cuts.  Rather than print cuts perhaps offering fsd, free charging it free insurance etc for a fixed period is better. 
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