The demand for a tesla is massive. Most can't afford to buy.


Reducing the price by say 5% increases their TAM by maybe 10%


At the investor day Elon said they were surprised but how much demand increased from small cuts in price.


Rob also wants to run the factories at full capacity and is willing to cut margins for growth, the idea being the more cars the bigger the software margins will be over FSD is available.


Tesla had margin to cut. No other ev manufacturers can cut their pricing. Most lose money now, so cutting prices increases losses while Tesla is hugely profitable.


Tesla can also shift battery supply to the energy business for health margin sales too 

Tesla Price Cuts: Flagging Demand Or Tactic to Boost Sales?

DETROIT (AP) — In explaining why Tesla Inc. keeps cutting prices on its electric vehicles, the auto
Tesla Price Cuts: Flagging Demand Or Tactic to Boost Sales?

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  • MIe
    ·2023-03-08
    Boost sales in china n usa
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  • maricel
    ·2023-03-08
    [Great] [Great] [Great]
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  • Samlunch
    ·2023-03-08
    Very flexible in pricing
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  • jas68
    ·2023-03-08
    Good to know thanks
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  • ed62
    ·2023-03-08
    noted with thanks 🙏
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  • XIN.wyanny80c
    ·2023-03-08
    wow
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  • yksim
    ·2023-03-08
    👍
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  • Kelvin 梁
    ·2023-03-08
    M
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  • YauDK
    ·2023-03-08
    Ye ye
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  • sst9383
    ·2023-03-08
    .
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  • Lailai8888
    ·2023-03-08
    Ok
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  • MoonJin
    ·2023-03-08
    ok
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  • Jojofi
    ·2023-03-08
    Ok
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  • Dblchsbrger
    ·2023-03-08
    Ty
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  • Tomxx
    ·2023-03-08
    Ok
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  • VirusK
    ·2023-03-08
    👍🏻
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  • Txxl
    ·2023-03-08
    ok
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