The article discusses Elon Musk’s strategy to revive Tesla’s fortunes by implementing significant price cuts and increasing electric vehicle production. Musk aims to make Tesla’s cars more affordable by reducing prices, with the goal of achieving higher sales volumes and market share. To support this plan, Tesla plans to ramp up production at new factories in Austin and Berlin, targeting an annual output of 1.8 million vehicles by the end of 2023. Musk believes that achieving economies of scale through higher production will offset the impact of price cuts on profit margins. Additionally, the article mentions Tesla’s plans to unveil its next-generation vehicle platform in 2024, which could further drive demand and sales growth. However, the price cuts have raised concerns about potential margin pressure and the need for additional cost-cutting measures.
Source: https://www.businessinsider.com/elon-musk-tesla-rescue-plan-price-cuts-electric-cars-earnings-2024-4