Part 6/12:
Recent Highlights and Market Impact
Model Y Affordable Launch
Tesla recently introduced a more affordable Model Y, priced around $5,000 less in the US, sparking mixed reactions. While some viewed the price cut as modest, other markets—particularly Europe—experienced significantly larger reductions (up to $12,000), opening new avenues for market penetration.
This move aims to expand Tesla’s market share among more price-sensitive consumers, especially in regions with high demand elasticity, thereby increasing the vehicle’s total addressable market (TAM). The demand curve indicates that reaching a $35,000 price point could eightfold increase Tesla’s market share, translating into substantial revenue growth.