- Orders for Tesla cars are at its strongest ever year-to-date, Tesla CEO Elon Musk said on a Wednesday call.
- That is due to Tesla cutting prices for its electric vehicles earlier in January.
- Tesla reported better-than-expected fourth-quarter results on Wednesday.
Tesla’s massive price cuts are working — orders for the automaker’s electric vehicles is at its strongest ever year-to-date, Tesla CEO Elon Musk at an earnings call with analysts on Wednesday.
“Principally, price really matters. I feel there’s just an unlimited variety of people who need to buy a Tesla automobile, but cannot afford it,” said Tesla CEO Elon Musk at an earnings call with analysts on Wednesday, in response to a transcript. “And so these price changes really make a difference for the typical consumer.”
Tesla slashed prices of its vehicles across global markets earlier in January, with as much as 20% cut for the Model Y SUV within the US. The move angered Tesla owners who purchased their vehicles before the discounts.
But the value adjustments are spurring demand, with orders coming in at almost twice the speed of production, Musk said on the decision.
In response, Tesla has raised the value of its Model Y. The Model Y now costs $500 more at $53,490 — after a price cut of $13,000 earlier this month.
Musk added it has all the time been Tesla’s goal to provide cars which are “reasonably priced to as many individuals as possible.”
Tesla reported better-than-expected results for the fourth quarter ending December 31, with revenue coming in at $24.32 billion, beating analyst’s expectations at $24.16 billion, in response to the Institutional Brokers’ Estimate System data on Refinitiv.
“We expect demand shall be good despite probably a contraction within the automotive market as a complete,” Musk said on Wednesday’s call. That is despite the fact that he’s predicting a “pretty difficult recession this 12 months.”
Tesla shares were 5.5% higher at $144.43 in after-hours trade on Wednesday.