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Moreover, Tesla’s inventory levels for models like the Model 3 appear to be lower, yet the company has increased discounts—some in Canada from $2,500 to $3,500, and similar trends in the U.S. This price discounting may seem counterintuitive if inventory is truly low, but it could be part of a strategic effort to clear stock, stimulate sales, or prepare for new model launches.
The inventory drop plus increased discounts suggest a complex picture: Tesla's capacity ramp at facilities such as Austin and Berlin, along with rising competition, could lead to further price cuts, impacting margins in the short term but possibly setting the stage for sustained market share growth.