Tesla ๐
How do you see Teslaโs global price cuts in the EV market?
Teslaโs global price cuts has raised a big question mark whether the demand for Teslaโs EV has been weak and triggered the panic button amongst many of its investors. However, I would see it as a strategic business decision for following reasons:
With more players in EV market nowadays, price cut is easiest to catch peoplesโ attention and gain market share. 20% price cut for EV of this brand name is hardly irresistible for potential EV buyers.
Ample production capacity to cope with increase in orders - Tesla has an upper hand over other competitors (even if they were to slash their selling price to bring in more sales) with their continued ramp-up of production at new factories in Texas and Germany.
While itโs certain that lowering price has a direct negative impact on revenue, it will drive a substantial uptick in orders for Teslaโs vehicles hence all in all, remains highly profitable still.
Will 2023 be a good year for Tesla?
Yes, with Teslaโs global price cuts coupled with its production expansion to gain economies of scale as well as disciplined cost cutting measures, Tesla has the right recipe for immense revenue growth year-over-year. 23.8% gross margin in Q4โ22 is already a stand out among car manufacturers, but do foresee that it will improve further in the upcoming quarters and certainly, I have faith that 2023 is gonna be a good year for Tesla.
Yes, with Teslaโs global price cuts coupled with its production expansion to gain economies of scale as well as disciplined cost cutting measures, Tesla has the right recipe for immense revenue growth year-over-year. 23.8% gross margin in Q4โ22 is already a stand out among car manufacturers, but do foresee that it will improve further in the upcoming quarters and certainly, I have faith that 2023 is gonna be a good year for Tesla.
Can Tesla reach its goal of making 1.8M EVs?
Why not? Teslaโs deliveries indeed missing the mark in recent quarters but with the continued ramp-up of production at new factories in Texas and Germany, making 1.8M EVs is a realistic and achievable goal.
Why not? Teslaโs deliveries indeed missing the mark in recent quarters but with the continued ramp-up of production at new factories in Texas and Germany, making 1.8M EVs is a realistic and achievable goal.
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