Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Tesla Priced Its Way to the Top and Back Again
In this episode of Pricing Power Podcast, Lucas and Luna examine Tesla's evolving pricing strategy, from the early days of the Model S to the aggressive cuts of 2023 and the subsequent stabilization in mid-2026. They break down how CEO Elon Musk used price as a lever for demand, margin, and market share, and why the approach has both won fans and frustrated investors. Specific numbers include the Model 3's price trajectory from $35,000 to $45,000 and back, and the impact on Tesla's automotive gross margin from 30% to 18% in 2024. They also discuss how traditional automakers…
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