in the first quarter of the year have sent waves through the auto industry. As legacy automakers and startups both try to catch up to Tesla’s electric vehicle dominance, some are wondering if the automaker’s price cuts could actually spur on a quicker transition to EVs.posits that lower-priced Tesla vehicles could accelerate an industry-wide shift toward the zero tailpipe emission technology.
Tesla CEO Elon Musk, on the other hand, recently emphasized the company’s aggressive strategy to increase overall vehicle volume – even if it means compromising some profitability in the short term. As competition in the EV segment continues to increase, some automakers are struggling to reduce any pricing in the midst of already-low margins and low volumes of production. Volvo CEO Jim Rowan recently noted that it was not worth attempting to boost demand through price cuts, since its demand has already increased beyond its production schedule.