Tesla could lower the price of its models even further in the coming months
Faced with increasingly ruthless competition, Tesla is considering lowering the price of its models once again
Since the arrival of the Chinese brands, a veritable price war has begun in the electric vehicle market. For the moment, the incumbent manufacturers are doing their best to resist the invaders, even though they know full well that they will have to lower the prices of their models still further. In the midst of the battle, Tesla is reportedly once again thinking of slashing the price of its range in order to retain its hard-won leadership position.
Playing on volumes
In an interview with the Wall Street Journal, Elon Musk confirmed that “offering even lower prices at Tesla is a good decision”. From then on, the strategy adopted by the Californian brand is clear: “deliver a large number of cars with a lower margin and reap that margin later” by playing on volumes. This could then bombard the electric car market in the face of struggling European competition.
Tesla is planning to slash prices even though its models are selling extremely well. The Model Y, which has topped the European sales charts since the start of the year, risks becoming out of reach if Europeans do not react. Tesla can also afford another price cut, as its profits soared to 2.7 billion dollars in the second quarter.
1.8 million vehicles by 2023?
The strategy of lowering prices has paid off, as the brand sold 479,700 models in the second quarter of 2023. Compared with 258,580 vehicles in the second quarter of 2022, this represents an increase of 85%. The slight fall in profits (18.2% compared with 19.3% in the first half) does not appear to have had any impact on the manufacturer’s accounts. Tesla is currently in excellent health and expects to deliver 1.8 million vehicles this year.
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