Tesla speaks openly about changes it will make to achieve its goals

As was expected to happen, because Tesla has been lowering prices like crazy over the last year, in the last presentation of results a sharp drop in profits and margins per unit sold was announced. And that is not a problem, because Elon Musk himself announced that this was the strategy to follow for the future. However, the problem is that they did not reach the delivery goal that they had previously set. Despite this, the manager pointed out that the target for this year remains at 1.8 million units sold. And it advances, yes, that they will be forced to take measures concerning prices to reach that figure.

Elon Musk‘s statements put interest rates in the spotlight. It seems that this, in the United States, is a major problem for Tesla. Despite this, they have already foreseen a record last quarter for this year 2023 and they have planned their strategy to make this happen so that, as they have committed to doing, that goal of 1.8 is achieved. million units sold. About this, Elon Musk has been clear when talking about what is going to happen with their prices, and how they are going to face the end of the year by taking very clear measures.

Tesla will meet its goal no matter what, and its key measure will be to lower prices even further for a ‘record last quarter’ this year

To reach that number of units sold in the full-year summary, Tesla has to sell 476,000 electric cars during the last quarter of the year alone. Reaching this number of deliveries would indeed mean that Tesla would set a new historical record. So, as Elon Musk himself has advanced, ‘we have to make them even more affordable so that people can afford them’. That is to say, continuing with the strategy they have maintained over the last year, the top priority is to increase sales and, to do so, once again it seems that the prices of their range of electric vehicles now available for sale will drop.

The last time Tesla lowered prices was this October, applying even more aggressive discounts on the Tesla Model 3 and the Tesla Model Y, but only in the United States. A month earlier, prices had already dropped, also in the United States, for both the Tesla Model S and the Tesla Model so that during the last quarter of the year they could beat their record. They should be the newcomer Tesla Model 3 Highland, which has barely been launched on the market and maintaining prices despite its enormous improvements, and also the Tesla Model Y.

While other competing manufacturers are having serious problems with the sales prices of their electric vehicles, because their margins are minimal, due to high production costs, the reality is that Tesla still has a margin. During the third quarter of the year, they recorded 23.4 billion dollars in revenue with a net profit of 1.85 billion dollars. The profit margin on sales remains at 17.9%, which has dropped to its lowest in two years, but the reality is that it is still well above the average maintained by its rivals and allows prices to be lowered even further.

During the last few years, and especially in the last few months, there has been talk that the Tesla Model 2, expected to arrive with a price of about $25,000 without discounts or aid, would be the car that would help Tesla take a scale of massive sales. However, the American brand is achieving the same with the Model 3 and the Model Y. That is to say, when the Tesla Model 2 arrives, which by the way will be manufactured in Mexico, they will have an even easier time distinguishing themselves from their rivals by achieving higher sales volumes.

The post Tesla speaks openly about changes it will make to achieve its goals appeared first on Latest Car News.

Latest Car News