Elon Musk Says No One Would Buy Toyota RAV4 If A Tesla Was That Cheap
Portfolio Pulse from Anan Ashraf
Tesla CEO Elon Musk stated that if Tesla vehicles were as cheap as a Toyota RAV4, no one would buy the Japanese SUV. Musk pointed out that many of the incentives for EVs, including tax credits, are difficult for the average person to access, making Tesla cars more expensive than a RAV4. Despite Tesla cutting prices on its vehicles since the start of 2023, rising interest rates have kept monthly payments relatively stable. Tesla's cheapest Model 3 RWD, even with a tax credit, is priced higher than the 2024 RAV4.
October 19, 2023 | 10:17 am
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Tesla's pricing strategy and the impact of incentives and interest rates could affect its competitiveness and sales. Despite price cuts, Tesla vehicles remain more expensive than some competitors, potentially limiting market share.
Elon Musk's comments highlight the challenges Tesla faces in terms of pricing and affordability. While the company has been reducing prices, factors such as difficult-to-access incentives and rising interest rates keep Tesla vehicles more expensive than some competitors. This could potentially limit Tesla's market share and growth, impacting its stock price.
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