Part 8/11:
Price Cuts and Competitive Positioning
Tesla recently reduced the prices of Model 3 and Model Y by approximately $5,000, making its vehicles more accessible worldwide. While this move has sparked criticism due to feature removals—such as the suspension system and glass roof—it also significantly broadens Tesla’s market reach. More consumers, especially outside the US, can now consider Tesla as a feasible option.
This price reduction intensifies rivalry, compelling competitors to reconsider their strategies. Elon Musk’s long-term vision emphasizes the importance of autonomous technology and robotaxi fleets rather than merely shrinking vehicle sizes or competing on traditional metrics.