Tesla: Elon Musk talks about “embarrassing” prices and possible cuts

The numerous price increases of Tesla models over the past two years have caused a lot of frustration for customers. Discussing the company’s financial results this week, Chief Executive Elon Musk admitted that prices had gone “to embarrassing levels”.

Unsurprisingly, he defended himself by referring to major disruptions in the supply chain and production, as well as “crazy inflation”.

On the other hand, Musk says he expects things to calm down and that it is possible that the trend will even reverse. “I believe inflation will come down by the end of the year,” he said in remarks quoted by Automotive News. I’m hopeful, but not a promise, that we can lower our prices a bit at some point. »

Photo: AFP

The cheapest and most popular Tesla, the Model 3, currently costs $48,190 in the United States – a 38% increase in three years – and $61,980 in Canada, including transport and preparation (still eligible for a subsidy). $7,000 in Quebec). At the other end of the scale, the Model X Plaid starts at $140,190 south of the border and $185,590 on this side.

Despite everything, and as Musk points out, demand for Tesla vehicles remains very strong. Global production is expected to ramp up “as quickly as possible” to avoid backlogs.

Photo: AFP

The new plants in Austin, Texas, and Berlin, Germany, had a slow start to operation, while the one in China had to be closed for several weeks this spring. On the other hand, in Fremont, California, the assembly lines are currently operating at record capacity. All in all, June was Tesla’s best month ever in terms of production.

Musk expects a 50% increase for the full year from 2021, when 930,422 units were assembled. He further claimed that the first deliveries of the highly anticipated and controversial Cybertruck are expected to begin around mid-2023.

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