‘Price War’??

Gforcemurphy

https://www.cnbc.com/2020/05/27/tesla-to-cut-car-prices-in-north-america-and-china.html

I came across this story which has caused some others (in US) to speculate whether this might indicate the beginning of an EV (or perhaps just motor in general) price war. New Model X and S to go down by $5k, Model 3 by $3k I think. I get that this might be just a localised ‘shot in the arm’ from Tesla, but what do you think?

1. Any chance this could be the beginning of aggressive price reductions between manufacturers, in more uncertain times ahead?
2. If so, do you think we’ll notice it at all in our wee market?
3. Also, any chance this could have a knock-on effect on the EV second hand market here / in the UK?

zg3409

Gforcemurphy wrote: »

https://www.cnbc.com/2020/05/27/tesla-to-cut-car-prices-in-north-america-and-china.html

I came across this story which has caused some others (in US) to speculate whether this might indicate the beginning of an EV (or perhaps just motor in general) price war. New Model X and S to go down by $5k, Model 3 by $3k I think. I get that this might be just a localised ‘shot in the arm’ from Tesla, but what do you think?

1. Any chance this could be the beginning of aggressive price reductions between manufacturers, in more uncertain times ahead?
2. If so, do you think we’ll notice it at all in our wee market?
3. Also, any chance this could have a knock-on effect on the EV second hand market here / in the UK?

I suspect its more supply and demand. Waiting lists for teslas in the USA are gone and even in Ireland the service centre has cars in stock to drive away today

https://www.tesla.com/en_IE/inventory/new/mP

The initial backlog of model 3 orders is gone or will be gone shortly, and they probably have room to drop prices. The grants might keep the base price around 50,000.

They probably have margin to drop prices, particularly if they have cancelled orders due to people losing their jobs and have excess stock. The more competitors come on stream such as Audi will hurt their high end, and there is a good few low end alternatives.

The second hand market is driven by supply and demand, very few model 3 on used market, high demand, model s old stock is dropping but not by much as not many competitors and demand for EVs in general is increasing. Low oil prices might reduce demand for EVs.

slave1

Re Tesla, I'd say any amount of folk going for the Y over the 3, S and X