by Morton E. . Oct 10, 2023
Image Credit: Tesla
Tesla has cut prices on its electric vehicles recently, making them more affordable than before. The move is seen as a sign of strength by some analysts, but it has also driven a wedge between TSLA investors.
Why it matters: Tesla is the world's leading electric vehicle maker, and its price cuts are likely to have a ripple effect on the auto industry. Tesla's price cuts in China earlier this year triggered a price war that affected the country's EV segment.
By the numbers: The base Model 3 sedan now costs $38,990, which is $8,700 less than the average amount paid for a car or truck in the US. The starting price for a Model Y SUV is $3,700 below the average auto price of roughly $48,000, according to an analysis from Bloomberg Green.
What's next: It remains to be seen how Tesla's price cuts will impact its bottom line. However, the move is sure to shake up the automotive industry and make electric vehicles more accessible to more people. This is especially important as Tesla prepares to start consumer deliveries of the Cybertruck, its most ambitious vehicle to date.
Go deeper: Some analysts see Tesla's price cuts as a concern. Gary Black, managing partner at The Future Fund, estimated that Tesla's recent price cuts will cost Tesla $1.2 billion a year starting in 2024.
"Amazes me that Tesla uber-bulls are trying to spin last night's price cuts as positive. We would prefer Tesla use long-term advertising investment to educate [internal combustion engine] owners to go EV rather than price cuts," Black wrote on X.
Sam Korus, an analyst at Ark Investment Management, was more optimistic.
"Now the fun part of cost declines ... life after price parity. There is no reason why battery costs or EVs should halt their price declines at price parity. The product can continue to cost less, or it continues to sit in the same price segment, and performance improves," he said.
What we have: Keep your rear passengers entertained with the Tesla Model 3/Y Rear Android Entertainment Touch Screen H72. This product features an Android 12 system with Apple CarPlay and Android Auto, so your passengers can enjoy all their favorite apps and media on the road. The Model S and X and the new Model 3 has this feature, and now you can have them too.
Or you can keep your drinks and food cold on the go with the Hansshow Tesla Model Y Fridge Portable Refrigerator Sub-Trunk Freezer. This mobile fridge fits perfectly in the sub-trunk of your Tesla Model Y, so you can enjoy cold drinks and snacks on your road trips and camping adventures.
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