Elon Musk says Tesla is waiting for inflation to “calm down” so it can finally start cutting prices for its electric vehicles, which have risen 20-30% over the past two years.
Tesla has made several price increases this year, so much so that the company’s entry-level vehicles, like the Model 3 and the Model Y, are already approaching the prices of flagship cars like the Model S of a few years ago. The Tesla Model 3, the company’s cheapest model, for example, had seen its price increase by more than 10,000 euros in just a few months, or almost 40% compared to its original price.
The COVID-19 pandemic and the war in Ukraine have greatly impacted the production lines of all car manufacturers, and therefore inevitably led to price increases. Tesla also faced a significant increase in the price of nickel, which has also had an impact on the prices of electric vehicles.
Elon Musk waits for inflation to subside to lower prices
In response to a user on Twitter who wondered if prices would drop after the pandemic or when supply chain issues are ironed out, Elon Musk was reassuring. The CEO of Tesla has announced that his company is waiting for the current inflation to subside before lowering its prices.
Consumer prices in the United States jumped 9.1% to reach their highest level in nearly 41 years in June, which keeps the prices of basic necessities such as gasoline and food high. In France, inflation reached 5.8% in June, and so Tesla had no choice but to scale back spending and raise fares. The American manufacturer had, for example, announced that it was laying off 10,000 employees because of the current economic situation.
The situation is not entirely catastrophic for the company, because although it saw its deliveries plummet in the second quarter of 2022 because of the closures of the factory in China, the car company will still be well over one million. vehicles shipped this year.
If inflation calms down, we can lower prices for cars
— Elon Musk (@elonmusk) July 15, 2022