Hyperdrive
Tesla’s Swelling Inventory Suggests Musk Will Keep Cutting Prices
Steep discounts haven’t addressed the supply-demand dynamics that are no longer working in Elon Musk’s favor.
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In the two weeks since Tesla alarmed investors by revealing how much of a toll discounts were taking on its profit margins, Elon Musk has bumped prices back up across the lineup.
But the April 20 increases on the Model S and X and this week’s tiny markups on the Model 3 and Y probably aren’t all-clear signals indicating Tesla’s pricing will stabilize for long. The dynamics that led the company to slash the costs of its vehicles the last few months — more supply than demand — appear to have stubbornly stuck around.