About
Information is our nourishment. Say hello to the data gods.
Meet Our Team
Consumers speak. We listen, analyze, and dig deep. You win!
Learn More
Solutions
Receive alerts and reports to power your fund management. Partner with our team of analysts to take your research to the next level.
Learn More
Plug our consumer-demand-data directly into your client-facing software, tools, and platform or work with us to create custom, high-value content your customers will love.
Learn More
Testing our data is like jumping in a time machine to compare market gains and losses against reliable and annotated historical data.
Learn More
Track specific tickers, receive alerts, and watch sector-specific trends. Drill down on individual stocks and see where consumer sentiment aligned with gains and losses in trading.
Learn More
Who We Serve
LikeFolio is your research secret weapon to sniff out game-changing shifts in the market before they happen.
Learn More
LikeFolio is source of quantitative data based upon real consumer insights to power your investment engine.
Learn More
LikeFolio is your content pipeline positioning your tool as an indispensable resource to your customers.
Learn More
LikeFolio has partnered with Tradesmith to build Derby City Insights and bring our powerful insights engine to private investors.
Learn More

TSLA is on a rampage

March 7, 2023

Tesla is putting its money where its mouth is.

During the company’s Investor Day presentation, Musk and a robust team of 17 company leaders outlined plans to make Tesla’s vehicles more affordable, including operational efficiencies that one analyst described as a paradigm change on how vehicles are assembled and how batteries are put together.

Musk explained a critical driver of these strategic decisions: “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla. Not, do they want a Tesla.”

“If your income is far in excess of what a car costs then you look at value for money but you do not consider affordability. But for the vast majority of people, it is affordability driven.”

Bottom line: Demand is very much a function of affordability, not desire.

This is an expansion on the classic parable: If you build it and it’s affordable they will come.

Musk can certainly talk the talk. But his company is walking the walk.

Yesterday Tesla unrolled price cuts on two of its top end models, marking the company’s fifth price adjustment in 2023 alone.

Cuts will lower the price for the Base and Plaid Model S by $5,000 and X by $10,000, as pictured below in a chart from Quartz:

Why is Tesla doing this?

The company thinks the line of affordability is much closer than people imagine.

Although the Model S and X accounted for ~4% of Tesla’s deliveries in 2022, this could shift buyers on the edge.

We know the price cuts have made a dent in company buzz.

Tesla Mention volume is on pace for the highest level ever recorded in 23Q1.

And we know Tesla’s previous price cuts worked like a charm in fanning the flames of consumer demand.

Purchase Intent mentions surged for Model 3 sedans following Tesla’s price cuts in January.

Perhaps more impressive, analysts don’t expect a major impact on margins, noting, “While margins should be dropping, the increased sales would compensate for that from a bottom-line perspective resulting in an unprecedented increase in the total earnings for Tesla.”

And Tesla already has a serious leg up on competition here.

This chart is remarkable:

Looking ahead we’ll be monitoring for demand traction among consumers.

Early analysis suggests this will only boost consumer happiness and the likelihood of initial (and repeat) Tesla purchases.

Bullish.

Tags: 

Related Posts

Checking in on DEMAND for Tesla ahead of earnings

Tesla reports earnings after the bell on Wednesday.  After last […]

Read More
Is Tesla's Blowout Quarter Just The Beginning?

With Tesla stock in the 250's just a couple of […]

Read More
Tesla Deliveries Crush Estimates

Tesla Deliveries Crush Estimates Consumer Purchase Intent Mentions for Tesla […]

Read More
1 2 3 12

Related Posts

Related Reports

KEEP YOUR COMPETITIVE EDGE

Get FREE insights in your inbox every week with the Daily Drop.

About LikeFolio

LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.

Partner Sites

© 2023
 LikeFolio. All Rights Reserved.
Privacy Policy
|
Terms of Use
LikeFolio userslaptop-phonepie-chartselect