Tesla’s pricing has generally trended down over the past several months, but…
The EV manufacturer‘s stock prices slid 9.7% Thursday, following the first-quarter earnings call after its price-cutting efforts throughout the first three weeks of 2023. CEO Elon Musk suggested that trend would continue, emphasizing the philosophy of pushing for higher sales volumes with lower profit margins over selling fewer cars at far higher prices.
Nevertheless, Tesla did indeed raise prices on its Model X and Model S vehicles by 2-3% after the earnings call and subsequent stock slip. As of Friday, April 21, the Model X starts at $97,490, while the Model S kicks off at $87,490, representing a $2,500 hike on its higher-end cars. Both are still less expensive than they were at the start of the year, but in an atmosphere where Tesla prices have been trending downward, this sudden uptick is notable.
Of Tesla’s recent price maneuvering, Ford CEO Jim Farley noted the potential for an “electric vehicle price war”, turning some EVs into commodities. The company’s moves, he said, are “completely rational and should surprise no one…Price wars are breaking out everywhere. Who’s going to blink for growth?”