[LammyL]

Tesla is in an infinite loop of building efficiencies and lowering manufacturing costs.

Elon has said many times that the lower the price of a car, the more market share opens up.

Their margins are in the 20-25% range whereas a legacy auto maker is below 13%.

There is a lot of room to cut prices and still make money.

[SketchySeaBeast]

Well that's confusing, people seem to be claiming different things. One is that they sell cars as fast as y If they continue to 100% sell out, why reduce margins?

[SketchySeaBeast]

Hmmm, message got mangled.

"Well that's confusing, people seem to be claiming different things. One is that they sell out immediately, the other is that they need to reduce margins to increase the market size. If they continue to 100% sell out, why reduce margins?

[LammyL]

Manufacturing capacity and output are also increasing as they build more Gigafactories and optimize existing ones. The price changes are an optimization to balance sales and production output to avoid shortages or inventory.