Tesla prices have fallen for almost half in five years

Tesla car prices decreased

Tesla’s car prices have fallen for almost half in five years, and it may succeed in replicating this achievement thanks to its next-generation electric platform.

News of the electric vehicle market has been mainly about Tesla prices and Elon Musk’s war on rival companies, as Tesla prices have fallen globally and caused Ford to lower the price of Mosting MacE, for example.

But Tesla and its chief executive were 100 per cent true to their vision, as price cuts caused the demand for Tesla cars to increase dramatically, leading it to increase its production to cope with increased demand. This is after orders fell to an alarming level in late 2022.

Keep in mind that this is not the first time Tesla has cut its car prices, as the drop in Tesla car prices for half has not happened between a day and night but has been gradually lowering prices over the years.

As mentioned earlier, Tesla’s price cut may have caused a price war in the electric vehicle market, but it is in a great position to win that war thanks to the industry’s higher gross profit margin.

Tesla has been able to cut its average selling price by half since 2017 with an improved operating margin from -15% to + 15% as it appears.

Tesla car prices down for half

Although prices fell last month, some analysts expect Tesla cars to see new declines over the course of 2023.

But what is really interesting to us is the question: can Tesla cars see half prices fall again over the next five years? This may happen thanks to the next generation of its electric platform.

Third Generation Tesla Electric Platform

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

There is not much detail about Tesla’s new platform, but it is expected to focus on reducing cost and improving manufacturing capacity to achieve a new level of productivity.

For his part, Elon Musk explained on more than one occasion that Tesla’s plan is to expand its industrial reach to 20 million cars a year, while cutting costs.

Some experts believe Elon Musk’s plan aims to offer an electric car with a built-in design of just $25,000.