Tesla business discussion
#361
Pole Position
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Only in the crazy world of Tesla are price cuts seen as a bad thing. This is all about volume. Tesla has big margins by industry standards and has more room than competitors to tweak pricing. Manufacturing simplifications will reduce cost and will soften the impact of these price reductions. Tesla wants to sell more Teslas, and this is how you do it.
It's also how Tesla has continually operated. Buy one today, and you run the risk that you could have paid more or less tomorrow.
It's also how Tesla has continually operated. Buy one today, and you run the risk that you could have paid more or less tomorrow.
#362
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These huge price drops really screw up the lightly used vehicles for sale as well as owners who purchased in the last few months. My friend bought a fully loaded Model Y four or five months ago and I know they will be super pissed the price went down by such a large amount.
#363
Lexus Champion
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Only in the crazy world of Tesla are price cuts seen as a bad thing. This is all about volume. Tesla has big margins by industry standards and has more room than competitors to tweak pricing. Manufacturing simplifications will reduce cost and will soften the impact of these price reductions. Tesla wants to sell more Teslas, and this is how you do it.
It's also how Tesla has continually operated. Buy one today, and you run the risk that you could have paid more or less tomorrow.
It's also how Tesla has continually operated. Buy one today, and you run the risk that you could have paid more or less tomorrow.
https://www.teslarati.com/elon-musk-...-lower-prices/
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#364
Lexus Test Driver
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Only in the crazy world of Tesla are price cuts seen as a bad thing. This is all about volume. Tesla has big margins by industry standards and has more room than competitors to tweak pricing. Manufacturing simplifications will reduce cost and will soften the impact of these price reductions. Tesla wants to sell more Teslas, and this is how you do it.
It's also how Tesla has continually operated. Buy one today, and you run the risk that you could have paid more or less tomorrow.
It's also how Tesla has continually operated. Buy one today, and you run the risk that you could have paid more or less tomorrow.
#365
Lexus Champion
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Demand hasn't gone down, the numbers prove that. Look at any sales graph. It's called undercutting the competition because you're smarter than them, and have more margin to play with
#366
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Lowering the prices of what they currently have at least buys them time for the Model 2. This is what margin strength allows for.
Not to mention strikes terror into the other car companies that lose money on their EV Business Unit. Maybe even predatory pricing?
#367
Lexus Champion
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#368
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Another reason is to squeeze the competition.
#369
Pole Position
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It should be fairly apparent by now that this isn't what drives Tesla. The demand problem Musk is solving is generating even more demand, not supporting weak demand. Musk sets sales goals, not revenue goals. Volume wins over margin for Tesla, and this is about driving more higher demand over the longer term. The other piece here is pushing more under the 55K threshold for tax credit purposes. We called that last week in the other thread.
#370
Lexus Champion
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There's really no other way to slice this bread...Tesla's has had nothing but straight up growth in the middle of a recession. 40 percent plus growth doesn't sound remotely like a demand problem. Tesla has orders to fill for at least the foreseeable future. What they are doing is undercutting their competition, putting intense pressure on car companies that are struggling to build and even make a profit on BEV (and even PHEV's). Car companies are in trouble
#371
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It should be fairly apparent by now that this isn't what drives Tesla. The demand problem Musk is solving is generating even more demand, not supporting weak demand. Musk sets sales goals, not revenue goals. Volume wins over margin for Tesla, and this is about driving more higher demand over the longer term. The other piece here is pushing more under the 55K threshold for tax credit purposes. We called that last week in the other thread.
#373
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Didn't someone here just pull the trigger on a Plaid because of the year end $7500 discount? Or was that another forum. Plaids just dropped $21K. Yikes.