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I think you might need to brush up on your understanding of demand elasticity curves.

Tesla is dropping the sticker price of their vehicles because they think that demand for their cars is at least somewhat elastic with respect to sticker price, and they're in a better position than you or me to have the data and analysis on this. (Tesla has also announced that this is why they're dropping the price so I'm not sure why you're arguing this point?)

Economies of scale are not related to this drop in price. Economies of scale refers to it being cheaper to product an product at scale due to efficiencies in the use of the largely fixed-cost capital expenditures. Companies don't usually drop prices due to EOS until at least a quarter or two after they've reached that point in the production cost cycle, largely to confirm that they've actually reached EOS operationally, and some company's retain the efficiencies from EOS as profit until/unless they need to for competitive market reasons.



Or: they’re dropping the sticker price to keep the overall cost of the vehicle stable or lower to meet demand.

Economies of scale allow them to do this.


Or: since the car is actually more expensive out-of-pocket even after the price "drop", they're simply doing this to reduce the sticker price they quote on all of their marketing materials.




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