Despite certain information aspects being asymmetric, I do believe that Tesla does understand price elasticity.
They are lowering prices because they have to, otherwise Q1 would look really bad. The sales center pitch is going to be “we covered the difference (most) of the subsidy loss” so its the same deal.
Tesla dominates the vehicles in its price class but doesn’t dominate the most profitable classes (trucks and suvs) and not yet reaching into the Camry class.
There’s no FSD refund - just honoring lower posted price.
PUPgate wasn’t a luxury that Tesla can afford. Elon ran his mouth off and legal decided best to just pay it and avoid any bad PR.
see, here's what I don't understand...
people here use words like 'elasticity' & 'asymmetric'
then go on to prove otherwise?
tesla does dominate in most profitable classes!
MB/BMW reflected in quarterly the damage of S/3/X
toyota's recent sales decline have been attributed
in large part to model 3...
now a pickup is expected 2019 along with model Y!
if you watched CNBC yesterday, detroit acting only to
protect their bread & butter, chevy introducing a behemoth
new siverado to compete with ford/mopar behemoths?
by all measurements except production/service and cash flow?
tesla is EXCEEDING all expectations and given their
NEED for cash flow, I still don't understand this reduction.
as far as the REFUND tesla did on FSD, they gave back money
they charged at a higher price, hence they REFUNDed $$$.
we can tomato/tomató the words, but they still REFUNDed $$$.
and I do agree, the corporation begrudgingly had to follow the
CEO's ill worded comments surrounding the PUP lowered price.
and they called that one a REFUND too!
isn't tesla NOT producing the SR model due to unprofitability?
I'm not holding my breathe of convincing anyone to a different
point of view, but when your products are selling WELL, and
you are having cash flow/profit challenges along with needing
to increase production on existing models while expanding your
line of products, strangling your pricing structure while confusing
your customers doesn't show knowledge of pricing or marketing.