Since it has been quite clear for some time that Tesla's margins are likely impressively high, it was able to not only drop prices on its whole lineup recently, but also drop them in a massive and surprising manner. Not long after Tesla's 2022 end-of-year discounts and incentives, it upped the ante much higher. For example, the Model Y's starting price dropped from $65,990 to $52,990, and now it's eligible for a $7,500 US federal EV tax credit on top.
Tesla's prices have been arguably too high for a time, and they kept going up in 2022. The demand for the vehicles was reportedly very high, and wait lists were growing. People were waiting many months to take delivery, and some may have been giving up onAfter Tesla was unable to meet its delivery guidance of 50 percent growth from 2021 to 2022, it announced the significant price cuts on all of its cars in the US.
As more people become aware of Tesla's price cuts and try to get in on the action, it's also reportedly sparking a boost in interest in EVs in general.shared that the number of people searching for electric cars grew after Tesla's recent price cuts. The was the second most searched vehicle overall on Edmunds' site, and it had been No. 70 just before the price reductions.Recent Tesla Price Cut Will Have A Negative Effect On Resale Prices
You can probably imagine many other ways in which Tesla's notable price cuts are making an impact on companies across the globe. It will be interesting to see how rivals respond, as well as how long Tesla will continue to offer its vehicles at reduced prices. If competitors lower their prices, it may encourage Tesla not to raise prices too high, but in the meantime, those rivals will likely lose even more money.
LoL, shockwave? More like a wave of laughter! BYD upped prices in November and outsell Tesla 2 to 1 in China.. VW upped the price of the ID3 this week citing increasing demand. Meanwhile M3 orders are being cancelled in favor of the cheap MY, Tesla declared a price war on itself!
Tesla has been claiming a 50% growth target and missed it badly last year. They need a lot more than 50% growth this year to get back on track. With Chinese sales relatively slow after price cuts there they will really have to sell a lot in the US
Ugly ugly vehicles. That are also death traps.
Awww
GM have already waved the white flag with their ICE announcement last week. Make ‘em while we can is now the motto from GM.
Eh, how has it sent 'shockwaves' through the auto industry exactly? VW just RAISED prices in NA and AFAIK nobody else has followed Tesla in drastic price cuts. 🤷♂️ Looks more like Tesla's having a price war with itself.
I watched Mary Barra's interview and she didn't look shocked at all. That's cuz putting on a brave front and misrepresenting things is her entire job. GM is screwed 🤕
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