If you’re desperate to save the environment but can’t afford an electric car, 2023 may just be your year. Tesla has decided to cut down vehicle prices between 6% and 20% across several countries. While the experts speculate what the real reason behind this is, I have some suspicions of my own.
Usually, companies cut down on prices when there’s a higher supply than demand. One of the reasons experts believe Tesla is lowering sales prices is due to Elon Musk’s belief that a recession may be coming. Apparently, he’s willing to sacrifice profits in order to beat the approaching rise in interest rates.
A more plausible reason could be that Elon has noticed many smaller rival companies producing more electric cars. Where Tesla provides most of the electric vehicles in some countries, these new competitors may be why Tesla now wants to lower sales prices. Musky is becoming fearful that he’ll lose his grip on new customers, as fragile as that grip may be.
Just in case many of you have forgotten, South Korea has recently fined Tesla for issues with many of the vehicles sold in the country. While many news sources are missing this point, I think it’s important. With shares dropping as much as 6.4% and faith in the company falling, is it any surprise that the company is thinking of new ways to win customers over?
Last week saw some Tesla price cuts already happening in Asia. It’s now happening in places like the Middle East, the United States, Africa, and Europe. Still, I have yet to see electric vehicles leaving a mark where I live. With so many fuel and electricity issues, we may need a car like in Back to the Future that runs on organic waste if we want to travel around in the next ten years.
