Tesla's price cut is a genius marketing strategy
Prior to Tesla's earnings report, majority of the news are negative. Hence. I decided to post some good news to have a balanced view.
I think Tesla's profitability will not be affected by the price cut because manufacturing improvement can lead to a 50 percent reduction in production cost. Tesla's competitors will be unable to follow the price cut or need to lower it's production as demand is decreasing. This is a genius marketing strategy by Elon Musk and his team.
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Tesla has flagged a paradigm shift in the way cars are built, saying that manufacturing improvements can lead to a 50 per cent reduction in production costs and pave the way for a “new generation” of electric vehicles, including the long hinted at “low cost” Tesla.
Tesla has flagged a paradigm shift in the way cars are built, saying that manufacturing improvements can lead to a 50 per cent reduction in production costs and pave the way for a “new generation” of electric vehicles, including the long hinted at “low cost” Tesla.
On April 2, BYD reported first-quarter sales were 552,076, up 93% vs. a year earlier but down 19% from Q4's record 683,440. Sales did pick up to 206,089 in March from February's 191,664 and January's 150,164.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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The RainMaker : So the rating is a “buy”?
S Punt : With price cuts, it appeared to lift demand and then increased sales (revenue). If cost side is becoming more efficient, doesn’t all these help with a better bottom line?
ZnWC OP S Punt : It will help in term of profitability
S Punt ZnWC OP : So then this will be good news for the shareholders, ie share price?