The problem with Tesla’s way of doing things, as I see it, is that it has effects beyond the obvious.
Aside from the thousands of people directly affected (mostly late November purchasers, who didn’t get the December inventory discount or the supercharger miles, but had the high interest rates) there is an argument to be made about confidence.
If a brand has form for making deep discounts to their product line on a whim, to chase volume targets, then as a mere owner - or potential one - you’ll have people asking themselves whether they should wait to buy, anticipating more discounts down the line, or how much the car they’re about to buy is *actually* going to be worth by the time they want (or need) to sell.
Deep discounting might pay dividends for shareholders, but I’m not so sure its the brilliant strategy that some would suggest it is. It may weigh heavily on perceptions. Apple - the most profitable company in the world - doesn’t do it, for example.
Aside from the thousands of people directly affected (mostly late November purchasers, who didn’t get the December inventory discount or the supercharger miles, but had the high interest rates) there is an argument to be made about confidence.
If a brand has form for making deep discounts to their product line on a whim, to chase volume targets, then as a mere owner - or potential one - you’ll have people asking themselves whether they should wait to buy, anticipating more discounts down the line, or how much the car they’re about to buy is *actually* going to be worth by the time they want (or need) to sell.
Deep discounting might pay dividends for shareholders, but I’m not so sure its the brilliant strategy that some would suggest it is. It may weigh heavily on perceptions. Apple - the most profitable company in the world - doesn’t do it, for example.