Published , by TJ Denzer
Published , by TJ Denzer
Tesla Investor Day 2023 took place this week, and the company shared a wealth of information about its plans, growth, and investments. One such part of its plan is making a more affordable Tesla electric vehicle (EV) to reach broader demographics in the goal of helping customers transition over to electric. When asked whether or not the company was concerned that future vehicles could cannibalize sales of its previous products, Elon Musk answered that the company is more interested in achieving affordability over worrying about cannibalization within its business.
Musk shared this stance on the matter regarding new Tesla EVs during Tesla Investor Day 2023. During the Q&A segment of the overall presentation, Musk was asked about whether or not the company’s goal to create and ship a more affordable vehicle could damage sales of its previous-gen products.
Musk claimed that affordability and logistics is a far greater concern than cannibalization:
This is consistent with previous comments Elon Musk has made regarding the price of Tesla vehicles. In the past, when prices on Tesla EVs have been raised due to inflation and demand, Musk has gone on record to say that the company would reduce prices if inflation calmed down. Musk has further gone on to say that prices were at “embarrassing levels” before.
Whether or not Tesla is actually able to get to a point where it can reduce prices and put out a more affordable vehicle remains to be seen, but it clearly seems to be a high priority at the company. Stay tuned as we continue to follow for updates on this particular matter.