Teslas came down in price because they could.
Elon said over and over that if the interest rates kept moving up on bank loans that they would have to reduce the cost of the vehicles to keep the monthly payments the same. Tesla didn't want to lose the current customer base as it is the most profitable one. It's a shame that other OEMs couldn't do the same as Rivian. They had no room to move which is directly reflecting in their production and delivery misses for the 3rd quarter. Ford can't sell a Mach-E to save their lives - and neither can GM. They have nowhere to move their prices to combat inflation and interest rates. It's a shame. Mary Barra (CEO of GM) said that they were already breaking even on the EV side of sales and had no room to reduce prices. So guess what the company said... "We are moving our focus from the EV market".
Tela's profit margin might take a hit, but their deliveries and production aren't. Elon indicated that there is STILL more room to reduce prices if inflation and interest rates move up again.
Question - when was the last Tesla price reduction? I guarantee it lines up directly with inflation and interest rates.
Thats exactly why Tesla's prices went down over the past 3 years. The monthly payments of a Tesla hasn't changed over the past 3 years even though the price of the vehicles went down.
Tesla was combating Inflation and interest rates. Pay attention to ALL of the news - not just what you want to see.
I think everyone understands that Musk/Tesla is choosing volume production/marketshare over profits. This is iCompany 101 really - same thing Amazon, Apple, Microsoft, Google, etc., did during the disruption business phase overall. Market share and moving as many units as possible is king with the iCompany business model. But eventually, this has to stop - as it has for Apple, Microsoft, Amazon, etc. The question for Tesla is when will it stop. The end of the business disruption phase starts the start of the more mature growth phase - which loosely generally aligns with the saturation of the early adopter base, which I think is something Tesla is likely to start hitting up against once overall market share for BEVs hits roughly 10-12%. We're at somewhere between 7-8% here in the US market depending on which stats you reference, so we're not far off. Why do I say this?
Generally the term "early adopter" breaks down into two primary groups. For the 1-2% early alpha adopter types - anything is basically acceptable as most believe in the core mission enough to overlook pretty much any shortcomings. These are what many often label as the true diehard fanboy base. For the remaining 3-10% beta early adopters, they aren't as willing to accept anything - but are willing to be an early adopter provided the product has "enough" stability. The definitions of "enough" and "stability" really boil down to whatever that means specific to the person in question. The answer varies in other words. The beta adopters are the remaining 3-10% that are represented in the overall market share that have purchased EVs to date. These beta adopters are typically also lumped into the same fanboy label - but as we're seeing play out on this forum - they have their differences. The alpha fanboys are the people that object to any negativity really - they are the true believers in the mission- at least from what I have observed. The beta fanboy adopters tend to be more vocal/factual about the shortcomings, and tend to hold the manufacturer (Tesla in this case) more accountable on forums like this, and are often portrayed by the alpha crew as "Debbie Downer types," or too negative. I'm solidly in the beta group, and am not afraid to speak my mind and to tell anyone where I feel Tesla is coming up short.
That said, I'm really not concerned about the alpha/beta adopters when it comes to the CT - at least not right now. Tesla has been a disruptor phase business success - but it really remains to be seen how successful Tesla will be when transitioning into a true mass market growth oriented business when it comes to realizing that the vast majority of normative automotive consumers simply won't put up with any of the shortcomings that the alpha/beta crew is willing to live with. I have concerns that the alpha/beta crew is mostly serving as an echo chamber to Tesla - as that is where they get the vast majority of their customer feedback historically and currently - since the vast majority of current customers fall into this base. In comparison, traditional automotive consumers shun early adoption and have zero interest in buying a vehicle that doesn't have certain key features that the manufacturer lauds or has features that aren't fully baked - like beta automatic wipers - that one shortcoming alone is enough for most traditional consumers to walk away - when the vast majority of ICE cars have automatic wipers that work just fine. Just one example of course - pick your poison with this in mind.
Right now, big picture, this all isn't a huge concern for the CT, since the early reservation holders, are by and large alpha/beta adopters. Hopefully Tesla irons out the kinks by the time traditional automotive consumers are ready to buy. But I do have concerns about the echo chamber that isn't really helping Tesla to introduce mass market products in a manner that will actually be acceptable to more traditional automotive buyers.