Why is Tesla cutting price? You think they can't sell 3/Y production from three factories at near current prices? Current range in USD is $35K to $60K. I expect their worse case plan is $30K to $60K.
This one is EASY to answer.
You are making the false assumption that Tesla wants to make as much money as possible. That's easy to understand, as that is the goal of just about every corporation.
Instead, Tesla's mission is to "accelerate the world's transition to sustainable energy". Elon has stated many times that as margins on cars improve, Tesla will lower the price on those cars so that they are affordable to more people.
It's a [email protected]#$%h for the traditional car companies to deal with a disruptor like this because the concept is completely foreign to them, and they base their "competitive models" on a startup wanting to make a certain profit percentage. Tesla is not run that way.
EDIT - Wall St. pundits ALWAYS misinterpret this move as a "lack of demand" for Tesla vehicles. The scale up in battery production is the clearest piece of evidence ever that there is no "demand problem" for Tesla vehicles.