Elon Musk hopes Tesla can lower vehicle prices in the future

By Gabe Rodriguez Morrison
Elon Musk hopes to lower vehicle costs when inflation slows down
Elon Musk hopes to lower vehicle costs when inflation slows down

Tesla CEO Elon Musk says that Tesla may start reducing the prices of its electric vehicles, which have increased 20-30% in the past two years.

When Musk was asked about when we can expect Tesla to lower its prices again, Elon said that Tesla could lower prices when "inflation calms down."

One of the main complaints about Tesla's electric cars is their cost. In late 2017 Tesla started with the Long Range RWD Model 3, and over the period of the next year or two, prices actually went down as Tesla reached volume production and manufacuring efficiencies.

However, as we hit 2020, the pandemic caused supply chain challenges and inflation that adversely impacted the auto industry along with the broader economy.

In early 2020, the Tesla Model Y started at $53,000. Today, the same vehicle starts at $66,000 representing a 25% increase in price in less than two years.

However these drastic price increases have not affected demand. In fact, recent inflation of gas prices has contributed to a significant backlog of orders. Some Tesla models having a 6 to 10 month delivery timeline on new orders.

Although Tesla has been increasing prices over the last two years, its gross margins have also increased. This means that Tesla's price increases have been greater than their cost increases.

This is because Tesla has to set prices based on the cost of vehicles produced in 6 to 10 months from now rather than the cost of vehicles produced today.

Put another way, vehicles being ordered today are priced based on the cost of vehicles produced (and delivered) in 6 to 10 months from now in order to account for future cost increases.

With so much uncertainty around the supply chain and inflation, it is hard for Tesla to predict those costs accurately.

Once these issues are resolved, Tesla hopes to reduce their prices. A big part of Tesla's mission is to reduce electric vehicle prices to make them accessible to everyone.

Sweet Move: Tesla Shifts from Creating EVs to Making Candy

By Karan Singh
Not a Tesla App

Tesla has filed four new trademarks recently, according to the US Patent and Trademark Office. These trademarks aren’t exactly what you’d expect from Tesla – they’re not for cars, not for batteries, and not for any cool new software features.

They’re for sweet, sweet, candy!

Candy Trademarks

Tesla has filed 4 distinct trademarks in its filings with the USPTO, for the following four names.

  • Supercharged Gummy

  • Cyberberry

  • Mango Bolt

  • Dog Mode Chill

The trademarks don’t come with any particular logos, art, or renderings, or it doesn’t reveal anything besides the names of the candy or candy-like items. Tesla filed these trademarks last month on June 25th.

While we’re not quite sure exactly what type of candies these will be, there is one thing we can knock off the bat – given how premium Tesla’s food products have been, these will likely include high-quality ingredients with a matching price point.

Elon Musk previously hinted that he wanted to start a candy company, and claimed he was super serious. Given his usual 2-week timeline, starting it 7-years later under Tesla seems fairly fitting. Jokes aside, we hope that the candies will launch sometime before the Tesla van, otherwise you can expect some more jokes on that front.

Tesla is well known for designing and selling non-vehicle merchandise. In the past, they’ve sold a glass decal that makes your window look like it was shattered with a metal bearing, Tesla Tequila, the Cybertruck whistle and many others.

Maybe we’ll hear more about Elon’s candy ambitions during Tesla’s upcoming earnings call, which will be taking place this coming Tuesday, July 23rd.

Tesla Looking to Hire 800 New Employees After Recent Layoffs, Large Focus on Energy

By Karan Singh
Not a Tesla App

Just three months after Elon Musk fired the entire Supercharger team, and laid off many employees at Tesla, the company is now looking to hire 800 new employees.

This comes after many members of the Supercharger team were hired back after their initial layoffs.

New Hirings

Tesla’s careers page now has more than 800 open positions today, and positions go from anywhere between engineers for artificial intelligence or batteries, ADAS testers in local communities, or service and desk employees for service centers.

Most of the new jobs focus on engineering positions, and many positions in Legal Affairs, Business Support, and vehicle software positions have not been posted or renewed. Those sections remain empty, at least in North America.

Tesla Energy Focus

Interestingly, quite a few of the new positions focus on Telsa Energy and its role in the company. There are several positions for supporting the deployments of Powerwall and Megapack, as well as doing further engineering work on these types of stationary battery systems.

Just recently, Tesla secured a $375 million Megapack contract in Australia – to build one of the biggest 4-hour battery banks in the world. This comes just days after the announcement of a $256 million Megapack contract to expand a different Australian facility.

We’re expecting Tesla to bank more towards its energy business – which has really just started getting off the ground with recent factory expansions and new business. Tesla Powerwall also recently hit some spectacular milestones – 100MW in California delivered to the grid, and 200,000 hours of backup power after Hurricane Beryl in Texas.

Powerwall and Megapack are going to be defining features of Tesla’s business – and we hope to see Tesla Solar – both Solar Panels and Tesla’s Solar Roof, also become more available to the mass market, just like Powerwall is today.

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