Elon Musk, the CEO of Tesla Inc TSLA, has weighed in on the ongoing debate regarding the electric vehicle manufacturer’s pricing, especially in the context of the company’s Full Self-Driving (FSD) feature.
What Happened: Musk took to X to address the issue, stating that the prices of Tesla vehicles are subject to frequent changes to align with production and demand.
He dismissed the Manufacturer’s Suggested Retail Price (MSRP) as the actual cost, saying, “Only a fool thinks the ‘MSRP’ is the real price. Tesla prices must change frequently in order to match production with demand.”
His comments were in response to a tweet by Whole Mars Catalog (Supervised), which criticized Tesla’s pricing strategy, suggesting that it was more chaotic than a monkey throwing feces at a keyboard.
Another user, ‘i like teslas,’ speculated that Tesla’s ability to adjust prices was a reaction to market conditions, something other automakers couldn’t do due to the dealership model.
Why It Matters: Musk’s remarks come amid a series of price adjustments by Tesla. The company recently slashed the prices of its electric vehicles in China by up to 6% and reduced the U.S. FSD price by $4,000. This move was seen as a response to increasing competition in the Chinese market.
Earlier in April, Musk hinted at the imminent launch of the FSD feature in China, a move that could potentially further disrupt the market. The FSD software, which is currently in ‘beta,’ is expected to be “really shining bright” by late April or May, according to Musk.
The debate over Tesla’s FSD pricing comes at a crucial time for the company. Tesla is set to report its first-quarter financial results on Apr.23, following recent layoffs that have impacted the company’s stock performance.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
