Tesla: the brand could still lower its prices?

 

Tesla electric car prices are on a rollercoaster ride. Indeed, after having increased sharply in 2022, prices fell from the start of this year 2023. A strategy that allows Elon Musk and his teams to sell more cars than ever, but this technique of increasing volumes by lowering prices could accelerate further. We explain to you on Abcacteur

The competition is getting tough

Tesla was one of the pioneers in electric vehicles. It must be said that driving in a Tesla Model S ten years ago provoked as much reaction as a UFO. However, in ten years the competition has made progress and the technological gap between Tesla and other manufacturers has narrowed, to stand out you must therefore play on another essential component of the purchase of a car: the price.

According to Reuters, it is a statement by Elon Musk which confirms that the price reduction strategy should continue since the American manufacturer wishes to remain among the most accessible on the electric vehicle market. A dear wish for Elon Musk who wants to increase his volumes and stay ahead of the competition.

A decline in margins

For this, Tesla must make compromises and the margins of the American manufacturer have been reduced. If last year the manufacturer recorded a margin of 26%, the margin of the first quarter was 19% and that of the second quarter was reduced to 18.1%. A reduction that seems to be bearing fruit since more than a million vehicles are awaiting delivery while sales figures in France and elsewhere are clearly on the rise.

However, the company's profitability has taken a hit despite the more than 466,000 vehicles delivered between April and July of this year. However, the manufacturer could count on new models in preparation to increase its sales. We think in particular of the rumors of a Tesla Model 3 Long Range with a single engine and a range of more than 600 km or even the possible arrival of a more compact and more affordable Tesla Model 2.

The American manufacturer still has reserves but its sustainability must go through a balance that still needs to be found.