Tesla could soon quit price wars?

Tesla has hinted that it could quit the price wars by this year as soon as the new Model Y production stabilizes, which could be a major change in the company’s strategy.

Tesla Country Director for Australia and New Zealand, Thom Drew, told ChasingCars that the new Model Y has improved competition, especially from the Chinese EV. However, the company is no longer considering the price point to remain competitive.

“We are certainly not going to get into price wars. I know we have famously been known for changing our prices rapidly over the past several years” said Drew.

In the past, Tesla has made several cuts and additions based on its EVs growth and demand as well as market conditions.

It keeps this practice as an option to ramp up sales or takes the most benefit when it’s the right time. On the other hand, the growing challenges from Chinese EVs have led to an increase in this practice due to their low production cost.

Drew revealed that the start of regular Model Y will be a great turning point in this matter. He said, the new Model Y upgrades are a total value for money.

Unveiled a month ago, the new Model Y comes with a stylistic facelift and improved aerodynamics. It features a lightbar in the front and optimized wheels for better efficiency. Internal upgrades include ambient lighting, improved seats, a separate 8-inch screen for the passenger row and more.

Tesla is expecting new Model Y’s initial deliveries in May in Australia. Meanwhile, the regular models such as the Rear Wheel Drive will be available in the next couple of weeks.

The Tesla executive said that the new direction is completely derived from quality, “we need to make sure we are hyper-focused on the quality of our products and our competitiveness”.

We don’t know whether Tesla will apply this price wars strategy through North America or Europe but the changing perspective in the competition or global politics may not let EV maker wind down on this segment so easily.