The Big Take
Musk Bets the House of Tesla on Low Prices and Razor-Thin Margins
The man who upended the auto industry is now offering steep discounts for his electric vehicles. Is this more disruption, or desperation?
Model Y
Source: Tesla
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Elon Musk’s bid to dominate global carmaking is taking a new turn, and dividing opinion. Some see him as Henry Ford in the age of the Model T; others, as Steve Jobs ushering in the iPhone era. But what if he’s Rick Wagoner, who steered General Motors Co. into a ditch?
Musk’s Tesla Inc. has cut prices of its electric cars at least a half-dozen times already this year, shaving almost a third of the cost off its top-selling model in the US. The strategy has no precedent—nor is there consensus as to whether it heralds more industry disruption or signals Musk’s desperation.