Re:Tesla’s Price Cuts Are Roiling the Car Market
by Zigurd on Monday January 23, 2023 @05:43PM
(#34496173)
The sub-headline sums it up pretty well: "The EV maker’s sudden move pressures rivals, crimps used-Tesla values"
The window for startup entrants is closing, and closes a bit faster now. It was always monumentally hard to get into making vehicles. You can't overstate the accomplishment of turning Tesla into a viable car maker. I expect some of them to fold this year. Maybe Rivian survives because they make a unique product for one customer.
Ford and GN are probably in good shape if they continue to execute well. Ford might have to roll back their F150 Lightning price increases a bit, but that product has no direct competition.
What's ridiculous is that $TSLA is up on the news of price cuts that cut margins. That's the core issue. At best it means Tesla overshot previous price increases.
The window for startup entrants is closing, and closes a bit faster now. It was always monumentally hard to get into making vehicles. You can't overstate the accomplishment of turning Tesla into a viable car maker. I expect some of them to fold this year. Maybe Rivian survives because they make a unique product for one customer.
Ford and GN are probably in good shape if they continue to execute well. Ford might have to roll back their F150 Lightning price increases a bit, but that product has no direct competition.
What's ridiculous is that $TSLA is up on the news of price cuts that cut margins. That's the core issue. At best it means Tesla overshot previous price increases.