What Does This Mean? Tesla Slashes Prices Across The Board

Tesla has reduced the pricing of its electric cars across its entire lineup in the middle of the night – with thousands of dollars price cuts on some models.

The global pandemic and the lockdowns put in place to slow down the propagation of the coronavirus have ravaged the economy of most countries and the auto industry has been particularly affected.

In response, Tesla, who has rarely suffered from demand problems, has decided to reduce prices across its entire lineup of electric vehicles.

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supermoto - 5/27/2020 11:43:30 AM

0 Boost

And each car will be worth $200k the moment FSD is released. In the meantime, we're slashing prices. Lol.

mre30 - 5/27/2020 12:28:13 PM

+1 Boost

Supply, Demand, and Pricing:

The four basic laws of supply and demand are: ...

If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.

If supply decreases and demand remains unchanged, then it leads to higher equilibrium price and lower quantity.

HMMM.... seems to me that inventory must be going up (despite the production shutdown?), so Tesla is responding by having a 'sale' and lowering prices.

Kind of hard to manange inventory when supply is disrupted if all the inventory is held at the plant and/or is in production.

For automakers with a 'dealer network' there is inventory in the pipeline to cushion the blow of situations such as this.

Also, if I wanted a Tesla (I don't) I would certainly NOT want one produced at the time plant employees are being 'forced' to show up at work. Nothing worse than an unhappy workforce for build policy.

Different workforce but the Fremont plant has a legacy of labor problems, perhaps the building is cursed? From wikipedia...

"The Fremont Assembly factory which NUMMI took over was built by General Motors and operated by them from 1962 to 1982, when the Fremont employees were "considered the worst workforce in the automobile industry in the United States", according to the United Auto Workers. Employees drank alcohol on the job, were frequently absent (enough so that the production line couldn't be started), and even committed petty acts of sabotage such as putting "Coke bottles inside the door panels, so they'd rattle and annoy the customer."

MDarringer - 5/27/2020 3:46:06 PM

+1 Boost

The Model 3 decimated the Model S.

Section_31_JTK - 5/27/2020 2:40:07 PM

+1 Boost

We're in the middle of a severe recession. The only reason most folks don't realize it is because the Fed is printing money like there is no tomorrow. People are not buying cars like they were. Tesla is trying to get rid of their inventory that's building up.

MDarringer - 5/27/2020 6:42:22 PM

+1 Boost

Caused by fuckard, alt-left, fascist-socialist, Democrat governors and mayors hellbent on destroying the economy.

We're definitely seeing signs of life as pent-up demand is walking through the door.

MrEE - 5/27/2020 5:25:42 PM

+2 Boost

Better than the typical auto incentives, especially dealer based ones.

mini22 - 5/29/2020 1:23:00 AM

+1 Boost

Fuckard! Eureka-a new word for the dictionary Darringer. I love it. Tell us how you really feel. Listen. the bottom line is you have to move inventory even if you are not making much of a profit. It at least produces cashflow. Sounds like potentially great deals on a model 3 even though its uglier than shit.