During this month of October, through his Twitter account, the co-founder and president of the Tesla company, Elon Musk, announced that the Tesla Model S vehicle would present a price reduction, this being his second price reduction, going from cost nearly $ 80,000 in May, at $ 69,420, more than $ 10,500 below its initial price. The news gave a lot to talk about, not only because of the significant reduction in price, but also taking it in a fun way and forming a numerical game with the selected price.
Reduction by external pressure?
Elon Musk made this statement after his competition in electric vehicles, the Lucid Motors that is noteworthy is led by former Tesla executive Peter Rawlinson, disclosed that the price of his Lucid Air sedan would be $ 77,400. The EPA-estimated range of Lucid Motors’ vehicle is 406 miles per single charge, while the Tesla Model S is rated with a range of 402 miles per charge.
And it is not only Lucid Motors that is shown as a threat to Tesla, but competitors in the field of electric cars, including the Porsche Taycan, have increased, so Musk has been forced to take drastic measures .
Tesla’s statement
The official version by Tesla, for the reason of this price reduction, is related to the decrease in the production costs of the vehicle, however, reality indicates that it is due to the steep decline in sales of the Model S and also the Model X, which are priced almost twice as much like the Model 3, which is Tesla’s best seller and features 400 kilometers of range at a cost of approximately $ 37,990 in the United States; this goes hand in hand with the proliferation of Tesla’s rivals, as mentioned in the previous point.
Tesla projections
Despite the fact that Tesla is considered one of the top three manufacturers of new energy vehicles, the company was forced to reduce its sales estimates, going to about 477,750 units by 2020, when they initially stated that they would exceed the 500,000 units.
Sales for the first three quarters of the year reached 3,118,350 units worldwide, a not inconsiderable number, however, they need to sell more than 180,000 vehicles to reach their initial goal, which many analysts consider quite difficult, although it is good. Elon Musk’s tenacity and determination to achieve his goals regardless of difficulties is known.
What are your thoughts on this subject? What do you consider to be the real cause of the price decrease?
If you want to know more about this you can contact us or write your query at the bottom (comments section).
Image of Free-Photos via Pixabay.com under Creative Commons license.
