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Old 11-12-2023, 09:44 AM
Chicks Chicks is offline
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Join Date: Mar 2017
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Elon Musk started a price war that Tesla can't win

Elon Musk started a price war that Tesla can't win
https://www.businessinsider.com/elon...rategy-2023-11

Is this "genius" all bluster? I won't need a new car until at least 2027 (my cars always last at least 10 years), at which point I hope Toyota's solid state batteries are proven. I'll not be buying a Tesla, ever.

Quote:
Lower prices are not translating into higher sales. The number of cars Tesla delivered to customers in the third quarter actually declined. Revenue is dropping, and the company's once fat profit margins are getting squeezed — down to 17.9% in the third quarter, compared with 25.1% a year ago. Competitors aren't being driven out of business, either. Once totally dominant in the EV space, Tesla's share of the US market has fallen from 62% at the beginning of the year to only 50% today.

To make matters worse, the public's appetite for EVs isn't growing as fast as automakers expected. That means Tesla has set off a protracted battle for a piece of a pie that's growing crumb by crumb.

"If you do the price war, you have to make sure you have enough volume to increase and maintain profitability," John Zhang, a professor of marketing at the Wharton School, said. "It has to be a continuous battle. This war you have to wage all the way. And you need to plan ahead. That's how you win."
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