Elon Musk has a playbook for Tesla headed into what he believes will be a 'serious' recession: cut costs on everything from parts to logistics, while keeping the pressure on competitors with discounted sticker prices.
, and sources the massive presses it has used to take cost and complexity out of production from Italy's IDRA Group.
"You can offset some of the margin hit from pricing with massive scale and simpler electronic architecture," Russo said. "This is how they are trying to win the game. Tesla forecast it would sell 1.8 million EVs this year, which would mean sales growth of about 37%. That annual number could be as high as 2 million vehicles barring an external shock, Musk said.
Kirkhorn said Tesla expected to see that metric above 20% for 2023 with the average price of its vehicles above $47,000 even after discounts. By comparison, the average price of a new vehicle was just over $49,500 in the U.S. market in December, according to Kelley Blue Book.
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