Tesla’s Price War Nearly Drove This EV Subscription Company Out Of Business

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Tesla’s Price War Nearly Drove This EV Subscription Company Out Of Business via InsideEVs

But Autonomy's fleet value plummeted after Tesla dropped the prices of its models across the globe, triggering a price war andin markets like China. “Instead of having an $85 million fleet, we suddenly had a, say, $56M to $57M fleet in one day,” he said in an interview.

As a consequence, the start-up underwent a forbearance process while Painter looked for solutions for the survival of his company. He raised $12M and had to cut down operating costs, including reducing the workforce from 120 to just 45 employees.Tesla Model 3 With Free Supercharging? Now In Existing Inventory

Moreover, Autonomy had to rethink its business strategy. Initially, the start-up planned to buy 23,000 EVs from 17 automakers. Since then, the company changed its goalposts. Currently, it has around 1300 cars. The CEO estimates that the company would require roughly 3000 models to recover costs.on dealer inventory levels, EV supply appears to outpace demand. US car dealers had an average weekly inventory of 90,000 EVs in Q2 2023, a 342 percent rise over the same quarter in 2022.

The price drops are also significant – a 2023 Tesla Model 3 rear-wheel drive, which had a starting price of

 

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