Per Sjofors
1 min readDec 20, 2023

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I don't like Musk. I don't like his cars. I don't like how he runs his businesses and how he believe himself to be God's gift to humanity. But one thing he has got right is pricing. I hate the brutality of this truck. EVs, in most geographical areas, are still products for early adopters, and those buy products for all different reasons but a low price is not one of those reasons. The average EV is sold at about an $8,000 loss. But Tesla is profitable. Those early adopters don't worry about range, about the re-charging time, about the risk of fires and the insane cost of battery replacement. But many of the mainstream buyers do. They are not risk takers. Incumbent car manufactures tries to lure those mainstream buyers with low prices and it does not work. They reduce production capacity citing "lack of customer demand" and they continue to sell at a loss. So, will EVs ever become mainstream? Probably but it may take another 8, 10 maybe 15 years before that happens. Will the incumbents continue to sell EVs at a loss? I don't think so and they then face the challenge of increasing pricing quite substantially. Can be done but is not easy...

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Per Sjofors
Per Sjofors

Written by Per Sjofors

Per is an author, speaker, and authority on all things pricing and the Founder Los Angles based Sjöfors and Partners.

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