According to recent data collated by Reuters, Tesla's unrivaled profit margins after the price cut have been visualized below.
Tesla made the unexpected revelation that it would be slashing prices on its vehicles by as much as 20% in January of this year.
Although price reductions are nothing new in the auto industry, they are new to Tesla. The business, which has always struggled to meet demand, has experienced a decline in its order backlog from 476,000 units in July 2022 to 74,000 units in December 2022.
Tesla's strong production growth, which saw 2022 production rise 41% over 2021, has been blamed for this (from 930,422 to 1,313,851 units).
The era of "endless" demand appears to be ending, therefore Tesla is taking the offensive by lowering its prices. This puts pressure on rivals but has also enraged current owners.
Cranking up the Heat
However, as explained below, Tesla's price reductions are not quite the desperate measure some media sites have suggested t...