Musk: "Vehicle prices honestly increased a lot... I want to lower them"

Mentioned Price Issues in Conference Call
But Emphasized "This Is Not a Promise to Lower Prices"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Elon Musk, CEO of Tesla, expressed hope to lower vehicle prices someday.

The Wall Street Journal (WSJ) reported on the 21st that Musk said during a conference call held that day, "We cannot keep raising prices to a high level."

He explained, "If you go beyond the limit that people can afford, demand will fall off a cliff," adding, "We have raised prices quite a bit, and honestly, Tesla prices are at an awkward level." He further elaborated, "But we have also experienced many supply chain and production shocks, as well as tremendous inflation."

However, he made it clear that these remarks do not constitute an official announcement of a price reduction. Musk emphasized, "I am hopeful (about price cuts), but this is neither a promise nor anything else," and added, "I hope to be able to lower prices a little someday."

Tesla has so far responded to operational challenges including inflation by significantly raising product prices. According to Bernstein Research, American customers who ordered Tesla's Model Y compact sport utility vehicle at the end of last month paid $68,000 (approximately 89.21 million KRW), which is estimated to be about $14,000 more than those who ordered during the same period last year.

Musk also viewed production issues as a bigger challenge Tesla faces than demand decline due to the global economic recession. He pointed out, "Our current problem is mass production," adding, "Many models have long waiting times, and some require waiting until next year." He added, "Demand is not much of a problem for us."

This content was produced with the assistance of AI translation services.