Tesla's car prices have nearly halved in five years, and it may be able to repeat that feat again thanks to its next-generation electric platform.
The news of the electric car market revolved mainly in the recent period around Tesla prices and the war that Elon Musk started against competing companies, as the prices of Tesla cars fell globally and caused this. Ford lowered the price of the Mustang Mac E, for example.
But Tesla and its CEO had a hundred percent correct vision, as the price cut caused a huge increase in demand for Tesla cars, which prompted them to increase production to meet the growing demand. This is after orders fell to an alarming level at the end of 2022.
Note that this is not the first time that Tesla has lowered the prices of its cars, as Tesla's price cut in half did not happen overnight, but rather reduced prices gradually over the years.
As mentioned earlier, Tesla's price cut may have sparked a price war in the electric vehicle market, but it's in a great position to win that war thanks to the highest profit margin in the industry.
Tesla has managed to halve its average selling price since 2017, while improving its operating margin from -15% to +15%, as seen in the image.
Tesla car prices have halved
Despite the price drop last month, some analysts expect Tesla cars to hit new lows in 2023.
But what we're really interested in is the question: Can Tesla cars see their prices cut in half again in the next five years? Perhaps it will happen thanks to the next generation of its electric platform.
The third generation of the Tesla electric platform
When Tesla launched two models and the Model X was based on the first generation of its electric platform, then the Model 3 and Model Y came with the second generations, and Tesla is currently preparing to present the third generation of its electric platform in March.
Not many details are available about Tesla's new platform, but it is expected to focus on reducing costs and improving production capacity to achieve a new level of performance.
For his part, Elon Musk has made it clear more than once that Tesla's plan is to expand its industrial range to 20 million cars per year while reducing costs.
Some experts believe that Elon Musk's plan is to provide an electric car with a compact design for less than $ 25,000.
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