dagug
Member
Both sides of this argument have valid points. We are all speculating on the EV landscape over the next few years and of course nothing is certain.
IF prices on competitor EVs catch up, then Tesla is ahead of the curve due to their high margin and will likely will stay ahead on technology and efficiency due to their massive head start. They would have already banked on their mid-year price increases while slowly whittling away at their massive delivery backlog by the time legacy automakers even have a chance to implement year end model (and price) refreshes.
IF prices do not match Tesla's increase by end of the year, they do not necessarily need to lower their pricing on existing models since they have now carved out space for a lower priced vehicle/version in their lineup (perhaps less acceleration or battery capactiy). For example, Tesla can very easily bring back a 50k Model Y with say... a 5.2sec 0-60 (just an example) and then allow for electronic upgrades to increase acceleration to match current/more expensive models - similar to the 2k accel boost they currently offer. This would not cannibalize their more expensive versions (aka current pricing) since lower priced entrants can simply upgrade and effectively matching the higher pricing. They would require basically zero change in production as this would only need to be software limited. Nor would it affect current increased pricing on already-purchased vehicles. Your more expensive Y (with better specs) will continue to be valued at its higher price.
Either way seems like a win-win here.
IF prices on competitor EVs catch up, then Tesla is ahead of the curve due to their high margin and will likely will stay ahead on technology and efficiency due to their massive head start. They would have already banked on their mid-year price increases while slowly whittling away at their massive delivery backlog by the time legacy automakers even have a chance to implement year end model (and price) refreshes.
IF prices do not match Tesla's increase by end of the year, they do not necessarily need to lower their pricing on existing models since they have now carved out space for a lower priced vehicle/version in their lineup (perhaps less acceleration or battery capactiy). For example, Tesla can very easily bring back a 50k Model Y with say... a 5.2sec 0-60 (just an example) and then allow for electronic upgrades to increase acceleration to match current/more expensive models - similar to the 2k accel boost they currently offer. This would not cannibalize their more expensive versions (aka current pricing) since lower priced entrants can simply upgrade and effectively matching the higher pricing. They would require basically zero change in production as this would only need to be software limited. Nor would it affect current increased pricing on already-purchased vehicles. Your more expensive Y (with better specs) will continue to be valued at its higher price.
Either way seems like a win-win here.
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