Answered on Quora: Why did Tesla drop prices of all its cars (January 2019)?


Why did Tesla drop prices of all its cars (January 2019)?

Daniel Becker, Patent Attorney and Early-stage Engineering (2013-present)

Answered 15h ago

Because the federal subsidy for purchasing a new electric car is expiring. Tesla wants to keep the volume of sales high. Eventually the competition will catch up, and it’s coming soon. Tesla needs to snatch and hold as much market share as possible, to make sure that they don’t lose their brand perception and dominance, when the big manufacturers start to get their Tesla competitors into the market. The new Jaguar I-lace is nearly there, better in a few ways, close in others. The Porsche Taycan and Audi E-Tron look really good, and those should take a big bite out of Model S sales. It’s sort of like how Toyota voluntarily made Priuses at a loss for many years, to make sure that they locked-down the hybrid niche years before anyone else.

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