In the early days of the electric vehicle (EV) market, automobiles were sold at a premium. Tesla Inc. unveiled the Model S in March 2009 with a base price of $57,400. And that was nearly 15 years ago.
However, the EV market is experiencing a shift. With availability on the rise, two things are happening: EV sales are following suit and price reductions are taking place.
Every EV maker is being impacted by this shift, with Tesla in the crosshairs.
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Consider this: Cox Automotive reported Kelley Blue Book’s data that June’s average $53,438 price for a new EV is down 20% from a peak of $66,390 in June 2022.
While Tesla has bucked this trend in the past, this summer brought about a change. The company began to offer large-scale discounts to consumers.
For instance, some Model 3 vehicles in the United States had their price slashed by $1,300. Then, a few months later, the same cars were discounted by more than $2,600. That’s in addition to discounts on Model Ys ($600), Model X ($6,330), and Model S ($5,000) vehicles.
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From Day One, Tesla has done things differently. The company rarely held inventory but instead asked buyers to order a custom-made vehicle from its website. This resulted in wait times often reaching several months.
But with the EV market shifting, Tesla is just like other automakers in the way that it’s holding onto a large inventory of unsold vehicles. When you combine this with an uptick in production from rivals, Tesla CEO Elon Musk is being forced to make changes. This means stocking inventory and advertising for the first time.
The energy crisis is changing the way that EV companies do business. The same holds true of other markets. For example, the consumer battery market is shifting toward sustainability and away from single-use batteries. This puts companies like Paleblue — a leading manufacturer of rechargeable lithium-ion (li-ion) batteries — at the forefront.
Paleblue has been awarded a patent for earth-friendly packaging with five additional utility and design patents pending. Anyone can invest in the company online.
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This article EV Makers Are Targeting Tesla In An Unexpected Way — How Will Elon Musk Respond? originally appeared on Benzinga.com
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