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One pertinent question many are asking is why Tesla chose to implement the price cut now rather than earlier. The reasoning provided revolves around demand dynamics. Tesla appears to be waiting until it has exhausted the backlog of existing orders placed at higher prices. By doing so, Tesla can honor those orders without adjusting their prices retroactively, thereby safeguarding profit margins.
This approach aligns with Tesla's broader strategy of leveraging demand. As it reduces prices to attract new buyers and increase volumes, existing customers who ordered at higher prices remain satisfied without feeling penalized. This tactic also allows Tesla to demonstrate robust demand to investors, especially when volume figures are a critical metric.