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Jan 23 2023, 07:00 GMT
Disruptive technology
Week 2 – US Bellwether Blast: Tesla’s price cuts
- Companies : HelloFresh SE | Kainos Group plc | Baltic Classifieds Group plc | musicMagpie plc | Deliveroo plc | DoorDash Inc | OnTheMarket plc | Sosandar plc | Trustpilot Group plc | Auto Trader Group plc | Carvana Co | Cazoo Group | Purplebricks Group plc | Darktrace plc | On the Beach Group plc | Marks Electrical Group plc | AO World plc | Delivery Hero | Virgin Wines UK plc | GB Group plc | ASOS plc | Rightmove plc | boohoo group plc | Itsarm plc | Moonpig Group plc | Naked Wines plc | Auto1 Group SE
DAVY VIEW
We focus on Tesla’s (TSLA) 20% price cuts across its range, with shares up 4% on the news. Price cuts of this size are unheard of and will place pressure on traditional manufacturers to keep pace. This represents a truly disruptive move by the disruptive force in the automotive industry. A potential price war and a higher Tesla supply could see margins slashed and a shift in the established order – this could help TSLA catch up with leaders VW or Toyota.
