Tesla’s aggressive price cut may have annoyed some buyers — but it worked.

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• Elon Musk, Tesla CEO, stated that orders for Tesla cars are at their strongest year-to-date.
• This is due to Tesla's January price cut for electric vehicles.
• Tesla announced on Wednesday that it had reported better-than-expected fourth quarter results.

Tesla's huge price cuts are paying off — Tesla's orders for electric cars is at their strongest year-to-date, Elon Musk, Tesla CEO, said during Wednesday's earnings call with analysts.

"Prices really do matter. According to a transcript, Tesla CEO Elon Musk spoke to analysts at Wednesday's earnings call. These price increases really do make a difference to the average consumer.

Tesla slashed the prices of its vehicles in global markets earlier this month, including a 20% reduction for the Model Y SUV in America. Tesla owners who bought their vehicles before the discount was applied were furious.

Musk stated that the price adjustments have sparked demand and orders are coming in at nearly twice the rate of production.

Tesla raised the price for its Model Y in response. After a $13,000 price drop, the Model Y now costs $500 more at $53,490.

Musk stated that Tesla has always strived to make cars "affordable for as many people"

Tesla reported better than expected results for its fourth quarter ended December 31. Revenue came in at $24.32 Billion, surpassing analyst expectations of $24.16 Billion, according to data from the Institutional Brokers' Estimate System on Refinitiv.

Musk stated that despite a contraction in the overall automotive market, he believes demand will remain strong. Musk said this even though he predicts a "pretty hard recession" in the coming year.

After-hours trade on Wednesday saw Tesla shares rise 5.5% to $144.43

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By: htan@insider.com (Huileng Tan)
Title: Tesla’s aggressive price cuts may have angered some buyers — but they worked
Sourced From: www.businessinsider.com/elon-musk-tesla-aggressive-price-cuts-demand-up-2023-1
Published Date: Thu, 26 Jan 2023 08:25:39 +0000

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