Elon Musk wants to wait for inflation to drop before cutting prices on models in the Tesla lineup. These tend to be on the rise at the moment.
For a little over two years, the whole world is plunged into a great economic crisis, between the Covid-19 pandemic and the war in Ukraine. A difficult situation, which notably resulted in soaring inflation, and therefore the cost of living in general.
But in addition to everyday consumer goods, the price of electric cars has also increased significantly. In particular, the shortages of components linked to the health crisis and the situation in Ukraine. All brands are affected, including Tesla, which has had to make several price increases in recent months.
No drop so far
Unfortunately, it shouldn’t get any better. At least, not immediately. Indeed, the boss of the brand, Elon Musk replied on Twitter to a user asking him if the prices of his vehicles were going to drop. when the supply problems will be resolved and when the pandemic will be over. And as always, the billionaire’s answer is clear and laconic: ” if inflation subsides, we can lower the prices of our cars“.
If inflation calms down, we can lower prices for cars
— Elon Musk (@elonmusk) July 15, 2022
It must be said that the situation is far from idyllic. In effect, in France, inflation reached 5.8% in one year in June 2022, while prices soared by 9.1% in the United States. Tesla was therefore forced to reduce its expenses, in particular by laying off many employees. The Californian firm was also forced to revise its prices upwards, in order to compensate for the increase in the price of nickel, an essential material for the manufacture of batteries.
But as Tesla had specified in its financial reports spotted by Electrek, the price increase does not necessarily reflect the state of the current market. Indeed, with a full order book at more than a year on the majority of vehicles, the American company is obliged to try to take into account the rise in the prices of materials to come over a long period. A tricky exercise to aim for.
Tesla’s margin on its vehicles has been rising in recent months, suggesting higher car prices than rising commodity prices. We are therefore not immune to a drop in prices over the long term.
An upcoming price increase for the Model 3?
In Italy, the Tesla Model 3 Propulsion has just gone up to 57,490 euros, while it is currently displayed at 53,490 euros in France. We must therefore expect a new outbreak in the coming days or weeks. It only remains to hope that inflation will drop shortly, while the Minister of the Economy Bruno Le Maire announced at the microphone ofEuropean 1 that it will return to a reasonable level next year.
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