Musk says Tesla vehicle prices are 'frankly at embarrassing levels'
During the recent Tesla (TSLA) Q2 earnings call, Elon Musk lamented how much the company has been forced to raise its prices due to economic issues.
Throughout a long period of time, demand for Tesla products have remained high as the company remains as one of the top-selling car companies. Over the course of those years, prices have raised on Tesla’s vehicles and products as well. The leadership at Tesla claims it’s not really a matter of demand, but further factors. Elon Musk even went as far as to say that Tesla vehicles are currently at “embarrassing levels.”
This opinion was shared during the Tesla Q2 2022 earnings results conference call. It was during this call that Elon Musk and other Tesla leadership spoke to questions on the matter of inflation, pricing, supply, demand, and more. Previously, Elon Musk claimed that Tesla pricing may reduce if global inflation calms down, and it seems to be a concern worth repeating for Musk.
“We have raised our prices quite a few times,” Elon Musk said during the call. “They are frankly at embarrassing levels.”
Source: Tesla
Earlier in this same call, when asked about the matter of inflation, Elon Musk went on to explain the sort of predictive pricing the company must employ. Considering the company must ship a car about six months to a year in advance, the company must be prepared for how it expects inflation to affect the valuation of its vehicles once they go out the door to customers.
Musk and other Tesla leadership also spoke to the fact that it is looking to cover its supplies whether a vehicle's components are sourced internally or from a third-party contractor. The company spoke to having adequate supply of 2170 cells for its fiscal 2022 production targets. Elsewhere in the call, Tesla claimed that if its suppliers couldn’t cover a deficit or production issue, the company would seek solutions to overcome them internally.
It remains to be seen if this means Tesla will actually be able to lower its prices anytime soon, but it seems to be a notable concern for some of the company’s leadership. Stay tuned as we continue to follow this story for further updates and check out more coverage from the recent Tesla conference call right here.
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replyTJ Denzer posted a new article, Musk says Tesla vehicle prices are 'frankly at embarrassing levels'
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Elon Musk has opined previously that Tesla could lower its price if inflation calms down.
But they have a 30% profit margin.
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