Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Tesla's Price Cuts Win the EV Market
In January 2023, Tesla slashed prices on the Model 3 and Model Y by up to 20 percent, igniting a price war that reshaped the electric vehicle industry. This episode examines the strategy behind the cuts: the trade-off between volume and margin, the impact on operating profits (which fell from 16 percent to below 10 percent), and how competitors like Ford, Rivian, and BYD responded. We also look at where Tesla's pricing stands in mid-2026, with margins restored to around 12 percent thanks to cost improvements. Lucas and Luna break down the numbers and extract lessons for any business…
The skinny
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