The EV price wars have begun. Will Tesla be the Amazon of the automotive industry?
In January of 2023, Tesla implemented a massive price decrease, up to 20% on some models. Less than a month later, when the federal tax credit rules changed to include more Tesla Ys, Tesla increased its prices on Tesla Y and 3 between $500 and $1500 per model. In March, Tesla cut the prices of the Model X and Model S by about $10,000 and $5,000, respectively. Elon Musk indicated his perception of the elasticity of demand for Tesla’s vehicle at an investor meeting, saying, “Even small changes in the price have a big effect on demand.”
