“Tesla’s Strategy: Price Reduction and Sacrificing Profit for Sales Growth”

Sentence: Spur Man

▲Tesla Model Y

Tesla’s recent price reduction promotion strategy has indeed increased the sales of its electric vehicles. However, it is okay as a short-term promotion, but it cannot be maintained for a long time, right? However, Tesla CEO Elon Musk said earlier that Tesla is not only willing to sacrifice profits in the short term to pursue sales, but even accepts “zero net profit”! Difficulty Does this mean that Tesla has a chance to cut prices further?

According to Tesla’s first-quarter financial report, price reductions and promotions have indeed helped increase consumers’ desire to buy, and can also increase the company’s profits. But most surprisingly, Elon Musk straightYan is willing to continue to use price cuts to increase sales, and he also stated that pursuing more sales figures is the correct direction of development.

Why is Elon Musk able to make such bold statements? Tesla increases sales through price cuts, but their income is not only from selling cars, software upgrades are also one of their sources of income, and the proportion is very important, which is why Elon Musk is so daring to say that he is willing to accept “zero net profit” .

Tesla revealed earlier that it will launch a more civilian-oriented car model, which costs half as much as Model Y. If Tesla really has room for further price cuts, will everyone wait any longer?