Tesla's Cost Cutting As A Growth Strategy
Tesla is showing that cutting costs is a great strategy and sometimes, we should work to do what is necessary to retain market share. Elon Musk has been fighting that battle in Tesla because he wants to have many Tesla vehicles on the streets, not just profits.
'As competition ramps up, Tesla launched cheaper versions of its Model S and X electric vehicles in the U.S. and Canada, cutting prices by $10,000. CEO Elon Musk said recently that Tesla would have to keep lowering prices if interest rates rise, and that he was willing to sacrifice profitability to grow sales. The new S and X "standard range" models, priced at $78,490 and $88,490, will be available in the fall. Meanwhile, in China, Tesla made its second round of price cuts in a week, "further fueling concerns of reigniting a price war," said Bloomberg.' (LinkedIn News)