Tesla car prices have halved

Prices of Tesla cars for sale have halved in five years.

• Tesla's car prices have nearly halved in five years, and it may be able to repeat that feat again thanks to its next-generation electric platform.
• The news of the electric car market revolved mainly in the recent period around the prices of Tesla cars and the war that Elon Musk started against competing companies, as the prices of Tesla cars decreased globally and this caused Ford to reduce the price of the Mustang Mach E, for example. .

• But Tesla and its CEO Elon Musk had a hundred percent correct vision, as the price cut caused a huge increase in demand for Tesla cars, which prompted it to increase its production to meet the increase in demand. And this is after orders fell to an alarming level in late 2022.

• You should know that this is not the first time that Tesla has reduced the prices of its cars, as the halving in the prices of Tesla cars did not happen overnight, but it has worked to reduce prices gradually over the years.

• As we talked about earlier, Tesla's price cut may have caused a price war in the electric vehicle market, but it's in a great position to win that war thanks to the highest gross profit margin in the industry.
• Tesla has managed to halve its average selling price since 2017 while improving its operating margin from -15% to +15% as shown in the image.

• Tesla car prices have halved

• Despite the price drop in recent months, some analysts expect Tesla cars to see new lows over the course of 2023.

• But what we really care about is the question: Can Tesla cars see their prices cut in half again in the next five years? Perhaps this will happen thanks to the next generation of its electric platform.

• The third generation of the Tesla electric platform

• When Tesla launched its Model S and Model X cars, it was based on the first generation of its electric platform, then both Models 3 and Y came out with the second generation, and Tesla is currently preparing to unveil the third generation of its electric platform in March.

• Not many details are available about Tesla's new platform, but it is expected to focus on reducing costs and improving manufacturing capacity to achieve a new level of productivity.
• For his part, Elon Musk has made it clear on more than one occasion that Tesla's plan is to expand its industrial range to 20 million cars annually, while cutting costs.
• Some experts believe that Elon Musk's plan is to provide an electric car with a compact design in the range of only $ 25,000.