Tesla’s price war: Cheaper cars expected to drive record sales
Tesla Inc investors are waiting to see how much Elon Musk’s price cuts will pay off: the electric vehicle (EV) maker is expected this weekend to report record sales as cheaper sticker prices, helped by US subsidies, spurred demand.
Musk’s action in January kicked off a price war that was especially heated in China, betting that Tesla’s industry-leading profit margins would let it rebuff growing competition and appease customers in a weak economy.
Tesla may have handed over 430,000 vehicles in the quarter ended March 31, according to analysts’ estimates collected by Refinitiv. That would be up 6% from the previous quarter, and up 39% from a year earlier.
