Tesla Inc. is now charging less for the cheapest version of the Model Y sport utility vehicle than what the typical new vehicle sells for in the U.S., a threshold Elon Musk crossed in blazing fashion.
Click here to read the story at latimes.com.
- What is competition?
- What is the difference between direct competition and indirect competition?
- Name three brands that represent direct competition to Tesla.
- Name three brands that represent indirect competition to Tesla.
- What is market share?
- How is market share an indication of how well a business is performing against competition within a particular industry?
- Why is market share important to Tesla?
- What is price?
- Why is pricing an important function of marketing?
- According to this story, Tesla has lowered the Model Y starting price by 24%, the biggest drop of any of its vehicles. No carmaker has made such a dramatic a reduction to a high-volume vehicle in the modern age of the automobile. Why do you think Tesla is taking such drastic measures in how it is pricing the Model Y?
- How might the competition respond to the price drop?
- How might that impact Tesla’s market share?
- What is profit?
- How is profit determined?
- Why are profits important to a company like Tesla?
- What is profit margin?
- How is profit margin determined?
- Lowering prices on its vehicles will likely result in lower profit margins for Tesla. Do you think that is a concern for the automaker? Why or why not?