Tesla is doing its part to fight inflation | Forexlive

These price decreases of 28% and 34% for high-end Tesla models are like a rorschach test for market watchers. I have heard so many takes on what this means for Tesla and automotive economics:

• Tesla demand has fallen
• EV costs have fallen
• Tesla is aggressively trying to take market share
• The economy is struggling
• Model 3 and Model Y cannibalizing demand
• Gaming federal subsidies

I tend to think there is some significant deflation in manufacturing and parts. The FT today writes about huge investment is Chinese battery plants and a battle for market share. If that doesn’t lead to competitive pricing now, it will later.