“Unexpected behavior”

After Tesla took the lead in announcing a price cut in China in January this year, the European and American markets followed suit.

On January 6, Tesla's official website showed that Tesla's domestic models have been significantly reduced in price, with the Model 3 starting at ￥229,900  and the Model Y starting at ￥259,900 . Tesla also announced the pricing of Model S and Model X, starting at ￥789,900  and ￥879,900  respectively.

This is Tesla's first price cut in 2023 and the second direct price cut in half a year besides promotional offers. It is worth noting that this price cut is also the most Tesla price cut ever, and has fallen below the lowest price in history, of which the Model Y long-range version has the most price cut, reaching ￥48,000 .

And just three weeks after the price cut, on February 4, Tesla raised the U.S. price of Model Y again. According to Tesla's U.S. website, the price of the Model Y Long Range version was raised by $1,500 to $54,990, while the price of the Model Y Performance version was raised by $1,000 to $57,990.

While this move is puzzling and surprising, a little analysis can reveal the general reason: a policy change. The Biden administration introduced a bill to allow more crossover SUVs to qualify for the electric vehicle tax credit. A price cut could stimulate demand to qualify for the credit. However, the expected price reduction will not lead to a sharp increase in demand, so the price was raised again. Another analysis believes that Tesla raised the price of the Model Y because Model Y squeezed sales volume of the Model 3 with similar pricing. Hence, it was inevitable to raise the price of Y and lower the price of 3. Musk's move is undoubtedly wise.

Tesla Price Cuts a ‘Huge Success.’

Tesla Supercharger Network

Currently, the demand for Tesla in the global market is still strong. As one of the giants in the auto manufacturing industry, the electric cars it manufactures occupy half of the global market. Its electric driving mode goes hand in hand with the concept of energy saving and environmental protection advocated today. While catering to people's aesthetic and usage needs, Tesla is also developing new fields, trying to further expand the market under the impetus of modern technology such as the Internet.

Today, there are over 40,000 Tesla Supercharger stations worldwide, making it the world's largest DC fast charging network. On Dec. 26, 2022, Tesla officially announced the construction of the 10,000th super charging station in mainland China. The super charging stations has covered more than 140 cities in China, covering each city's core business districts and scenic spots.

Here's how to use the supercharging station to charge your Tesla car. It takes just two steps. First, download the Tesla app, select the "Charge my Tesla" button and find your site. The app will tell you what facilities are available at that location, how much it costs, and what stations are available. Then, plug it in and charging begins. However, if the car being charged is not a Tesla, the steps are a little more complicated, but it will charge.

So how much does it cost to charge at a Tesla Supercharger? If you use a monthly membership to charge regularly, the price will be more favourable. In the UK, you can save between 10 and 20p per kWh. For non-members, the average is 60p per kWh.

It can be seen that Tesla cars and the Tesla Supercharger network have formed a complete industrial chain. The growth of Tesla sales can promote the construction of the Supercharger network, while the improvement and expansion of the Supercharger network can make the popularity of Tesla rise, and the two complement each other and promote each other.

Integration of technology and services

Besides, when it comes to patents, Tesla is open for business. Musk believes that technology leadership depends not on patents, but on a company's ability to attract and mobilize talent.

Tesla understands the importance of meeting technological trends. Many of the components of Tesla's cars use current advanced technology and take full account of the customer's sense of use. For example, the Model S has only two physical buttons on the centre panel, with all other operations done on the colour touch screen, effectively increasing accident warnings; Tesla offers four years of traffic-free service for every Model S and expansion in cloud applications. Tesla is currently working with Chinese map data vendors in an attempt to develop a Chinese version of the dedicated map.

Tesla's financial report for the fourth quarter of 2022 shows that Tesla's operating income in the fourth quarter hit a record high for the second consecutive month, and its operating profit and net income both hit a new high in a single quarter. Recently, Cathie Wood, CEO of Ark Investments, said in an interview with the media that if she had to buy a stock today and hold it for the next decade, it would be Tesla. Wood predicts that in the next five years, Tesla's share price will reach $ 1,500 per share, which means that Tesla's share price will increase by 697% compared with the current level. She believes that Tesla's price reduction will restore some of the demand that fell last year, which means that it will be difficult for competitors' electric vehicle manufacturers to keep up. She also believes that in the next decade, the delivery robot market will expand to 1 trillion US dollars, and Tesla will become the leader in the delivery robot market. At the same time, Musk also revealed that communications technology is included in the planning blueprint. For the time being, although the global economy is declining in the general environment, Tesla has a long way to go with its ambition and brilliant vision.