Posted on Feb 2, 2023
Tesla slashed its prices across the board. We're now starting to see the consequences
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https://www.npr.org/2023/02/02/ [login to see] /tesla-price-cuts-ford-mach-e-gm-electric-cars-tax-credit
Last month, Tesla dropped its prices dramatically — up to 20%.
Auto companies offering discounts to promote sales is nothing new, but this move sparked a lot of reaction. So what was so special about these price cuts? And what do they mean?
A lot, actually. Here's how the announcement is having ripple effects, from the impact on Tesla owners to the changes it could spur across the auto industry.
Others are now under pressure to cut prices
When a leading company cuts prices, all their rivals feel pressure to follow suit — it's economics 101.
And the textbook scenario is playing out in the headlines.
On Monday, Ford announced it was cutting prices on the Mustang Mach-E, an electric SUV that competes against Tesla's Model Y. Prices dropped by $900 to $5,900, depending on the vehicle's options.
Last month, Tesla dropped its prices dramatically — up to 20%.
Auto companies offering discounts to promote sales is nothing new, but this move sparked a lot of reaction. So what was so special about these price cuts? And what do they mean?
A lot, actually. Here's how the announcement is having ripple effects, from the impact on Tesla owners to the changes it could spur across the auto industry.
Others are now under pressure to cut prices
When a leading company cuts prices, all their rivals feel pressure to follow suit — it's economics 101.
And the textbook scenario is playing out in the headlines.
On Monday, Ford announced it was cutting prices on the Mustang Mach-E, an electric SUV that competes against Tesla's Model Y. Prices dropped by $900 to $5,900, depending on the vehicle's options.
Tesla slashed its prices across the board. We're now starting to see the consequences
Posted from npr.org
Tesla Motors
Cars
Vehicle
Posted 2 y ago
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