As Reuters reports, in the third quarter of last year, Tesla earned $15,653 in gross profit from each car sold. For comparison, this is twice the figure for Volkswagen, four times the result of Toyota Motor, and five times that of Ford Motor.
Such a high level of profitability became possible thanks to large investments in new production technologies. Now Elon Musk's company can use this advantage as a tool in the price war, dumping on the market.
Reuters notes that a similar approach was used before. At the beginning of the 20th century, Henry Ford, thanks to his assembly line, was able to significantly reduce the cost of the iconic Model T, which allowed him to dump on the market.
Later, in the 1980s and 1990s, Japanese Toyota used its cost advantage in the American market, selling cars at prices that local manufacturers could not match.
According to the agency's forecasts, competition in the electric vehicle segment will only intensify. By 2026, demand for EVs in North America will grow to approximately 2.8 million units annually, while the capacity of local plants will reach 4.5 million. Under such conditions, Tesla's strategy could help it squeeze out weaker rivals with lower margins from the market.
