Car owners want to defend their rights again? Tesla cuts prices again after half a month: Model X/S drops by up to 150,000 yuan

Tesla released a new Model S/X price adjustment policy on September 1, reducing the prices of the two models by 55,100 yuan and 98,000 yuan respectively. On August 16, Tesla just reduced the prices of these two models.

In just half a month, the prices of Tesla's domestically produced Model S/X dual-motor versions dropped by 55,100 yuan and 98,000 yuan respectively, and the three-motor Plaid version dropped by 130,000 yuan/151,000 yuan. This is the sixth time Tesla has cut prices for its domestically produced models this year.

Tesla's price reduction move has attracted market attention and discussion. Some people believe that this is a strategy adopted by Tesla to increase sales and market share, while others believe that this is due to the market competition and capital pressure faced by Tesla.

For old car owners who have already purchased Tesla's domestically produced models, this is undoubtedly a blow and hurt. Not only did they see their beloved cars depreciate significantly in a short period of time, but they also did not receive any compensation or preferential policies from Tesla. This makes people wonder whether the old car owners' rights protection that has occurred before will happen again?

So, why does Tesla frequently cut prices for its domestically produced models?

91che believes that there are three reasons for this: first, the assessment requirements of market sales KPI; second, the investment pressure from the capital market; and third, Tesla has the confidence and strength to significantly reduce prices.

Market sales KPI is one of the core indicators of Tesla's operations and an important reflection of its brand image and market influence. Tesla set a global delivery target of 1.5 million vehicles in 2022, but its fourth quarter delivery report for 2022 showed that its total delivery volume for the whole year was 1.31 million vehicles, which did not meet the target.

In the Chinese market, Tesla's sales have also fluctuated and declined, facing strong competition from domestic new energy vehicle companies. Therefore, Tesla's strategy to achieve performance growth is to stimulate market demand by reducing prices, increase sales and market share.

Secondly, investment pressure from the capital market is also an important factor in Tesla's price cuts. Tesla's stock price experienced wave after wave of plunges in 2022, from more than $900 at the beginning of the year to more than $400 at the end of the year, and its market value shrunk by nearly half. Tesla's stock price has been affected by many factors, including negative news about its product quality, safety performance, supply chain, and legal proceedings. Tesla's price cuts to increase sales and revenue are also intended to send a positive signal to the capital market and stabilize investor confidence and expectations.

Finally, the reason why Tesla was able to significantly reduce prices is also because it has strong cost control and economies of scale. Tesla has adopted a cost-based pricing strategy for domestic models. With the localization and optimization of its batteries, components, production lines, etc., its production costs continue to decrease, providing it with greater room for price cuts.

In summary, Tesla's frequent price cuts for domestically produced models are a proactive adjustment strategy it has adopted under market competition and capital pressure, and a means for it to achieve performance growth by leveraging its own cost advantages and economies of scale. However, this strategy has also brought some negative impacts to Tesla, such as damage to its brand image and loyalty, difficulties in protecting the rights of old car owners, and changes in the new energy market structure.

How Tesla balances these pros and cons and how it responds to market changes and consumer demands will be important issues facing its future development.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.