EV Price Wars Thread
Lexus Champion
Joined: Oct 2019
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From: California
Model Y just got a price cut too! Also if you have a Tesla on order and the price goes down, you automatically get the lower price as long as you haven't taken delivery yet. If you have a Tesla on order and the price goes up before you take delivery, you're locked into your original lower price
Last edited by AMIRZA786; Apr 7, 2023 at 07:55 AM.
Lexus Fanatic
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From: ON/NY
Lexus Champion
Joined: Apr 2019
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From: FL
If the market exists for a product, lowering price will always increase demand.
Also, if a market exists for a product but supply is low, the price will always increase.
Stating the obvious but it's true.
Also, if a market exists for a product but supply is low, the price will always increase.
Stating the obvious but it's true.
Lexus Champion
Joined: Oct 2019
Posts: 19,487
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From: California
Lexus Champion
Joined: Apr 2019
Posts: 11,115
Likes: 1,553
From: FL
That how I see it in my own words.
On the flip side, when someone Decreases their prices but their sales do not Increase in proportion to the price cut, this can be seen as diminshing demand. iMO
The diminshing demand is then corrected by price cuts and demand is restored again.
So, I guess what I'm trying to say is it is important to me when discussing the increasing or decreasing of demand, we are talking about demand at what price,
Example: a car is in high demand at $30k but same car is low demand at $40k.
PS- the EV price wars will be a blood bath...
Last edited by Margate330; Apr 7, 2023 at 09:16 AM.
Lexus Champion
Joined: Oct 2019
Posts: 19,487
Likes: 3,672
From: California
Thank you.
That how I see it in my own words.
On the flip side, when someone Decreases their prices but their sales do not Increase in proportion to the price cut, this can be seen as diminshing demand. iMO
The diminshing demand is then corrected by the price cut and demand is restored again.
So, I guess what I'm trying to say is it is important to me when discussing the increasing or decreasing of demand, we are talking about demand at what price,
Example: a car is in high demand at $30k but same car is low demand at $40k.
PS- the EV price wars will be a blood bath...
That how I see it in my own words.
On the flip side, when someone Decreases their prices but their sales do not Increase in proportion to the price cut, this can be seen as diminshing demand. iMO
The diminshing demand is then corrected by the price cut and demand is restored again.
So, I guess what I'm trying to say is it is important to me when discussing the increasing or decreasing of demand, we are talking about demand at what price,
Example: a car is in high demand at $30k but same car is low demand at $40k.
PS- the EV price wars will be a blood bath...
CL Community Team
Joined: Feb 2007
Posts: 9,312
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From: IL
It's also flexibility provided by their direct sales model. If Tesla reduces the price of a car by $5000, the end result of that is the customer purchases the car for $5000 less in 100% of cases. That should drive additional demand and increase sales.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
Lexus Champion
Joined: Oct 2019
Posts: 19,487
Likes: 3,672
From: California
It's also flexibility provided by their direct sales model. If Tesla reduces the price of a car by $5000, the end result of that is the customer purchases the car for $5000 less in 100% of cases. That should drive additional demand and increase sales.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
Lexus Fanatic
Joined: Nov 2011
Posts: 35,285
Likes: 309
From: ON/NY
It's also flexibility provided by their direct sales model. If Tesla reduces the price of a car by $5000, the end result of that is the customer purchases the car for $5000 less in 100% of cases. That should drive additional demand and increase sales.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
If one of the traditional manufacturers reduce the price of a car by $5000, in better than half of cases all that will happen is the dealer will pocket all or most of that $5k. The end consumer will pay the same price as before. Therefore reducing prices won't measurably increase sales, so they won't do it. It would be reducing profitability for no reason whatsoever.
the other alternative is to reduce production or modify the product so that you can offer a lower trim. A full line manufacturer would do either of these, or they would offer a rebate
Last edited by Toys4RJill; Apr 7, 2023 at 09:41 AM.