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Without any real substantive changes to the vehicles, Tesla's prices rose as much as 50% (for the Model X) from 2021-2023. Even the Model 3 has increased by abo

Without any real substantive changes to the vehicles, Tesla's prices rose as much as 50% (for the Model X) from 2021-2023. Even the Model 3 has increased by about 25%. You can make inflation arguments, but it's pretty hard to claim that Tesla is driving prices down. (Prices have come down in 2023, but it's too early to know if this change is sticky. The reality is, most observers think Tesla uses price to regulate demand - so dropping price could just well mean less people want Teslas than before.)

sisve 3y ago
Your right, maybe my formulation was a bit clumsy. I'm not arguing that Tesla is driving the price down for consumers (more then necessary). I agree that they use price to regulate demand. But they want to sell as much as they can. So if the price is too high they will not sell out all cars. And they can afford to lower prices more then many of their competitors because they earn more per unit sold then the rest of the field [source: https://asia.nikkei.com/Business/Automobiles/Tesla-earns-5-times-more-per-car-than-Toyota-earnings-show https://asia.nikkei.com/Business/Automobiles/Tesla-earns-5-t... ]