The Main Stream Media (MSM) loves to paint Elon Musk, as a villain, especially when he's 15 to 20 Tesla moves ahead of other OEMs.
Here are some headlines from the Main Stream Media proclaiming the impending doom for Tesla because of diminishing demand for its vehicles. These articles portray the recent Tesla worldwide price cuts as due to the lack of demand and basically that Tesla's hand was forced to do so.
Take a look at how CNBC covers the Tesla EV price cuts:
Tesla cuts prices in the U.S. and Europe to stoke sales after lackluster year-end deliveries
CNBC had a morning segment featuring Jim Cramer's views on the Tesla price cuts, where he insinuated that Tesla has real competition from the Ford Mach-E, and this is why Tesla had to lower its prices. Cramer seems to think, or wants you to think. that Tesla was starting to feel the heat form the Ford Mach-E offering.
In reality, Tesla sold 536,069 vehicles in the US in 2022, while Ford sold only 61,575. Unfortunately this has been typical of the Main Stream Media's approach to reporting on Tesla. They (MSM) usually takes a negative slant toward Tesla and Elon Musk for reasons unknown. It makes me wonder what their dark agenda is.
“Dan Ives, an analyst at Wedbush, said that Tesla’s price drop is aimed at boosting demand and taking even more market share from its competitors, which have slowly been catching up to Tesla.”
Is it really a demand problem or competition that forced a Tesla sales slowdown in the fourth quarter, or is it just smart consumers waiting for more clarification from IRS about the Inflation Reduction Act (IRA)? The IRA will provides a $7,500 tax credit for specific electronic vehicles in 2023. Wouldn't it be smarter to wait and see how things unfold with the IRA qualifications?
Well, I think that's exactly what consumers interested in buying an EV did. Here's a clear indication of that. The following chart shows how much Inventory there was before the Tesla price cuts and after.
The chart shows a huge 70.87% drop in inventory for Tesla Model 3 and Tesla Model Y, in just 4 days, since Tesla announced Its price cuts.
“this is a clear shot across the bow at European automakers and US stalwarts (GM and Ford) that Tesla is not going to play nice in the sandbox with an EV price war now underway,” Ives said.”
Tesla is playing the long game
Although the Tesla EV price reductions will cause the Average Sales Price to go down, Tesla earnings will only take a temporary margin hit. The lower Tesla EV prices in 2023 will result in more market share being taken away from Ford. GM
and the rest of the gas powered OEMs. Yeah, it looks real grim for anyone trying to compete with Tesla in the future. Good luck GM and Ford... you're going to need it!
By the way Toyota Good Luck to you too!
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