Stellantis does not intend to follow Tesla on the path of continuous price cutsto the price list of electric cars. As we know, in recent months the American automaker has reduced more and more. times the costs of its models, especially those of the Model 3 and Model Y. An initiative that has certainly made it possible to increase sales. In Europe, for example, the Tesla Model Y is the most popular vehicle in Europe. by far the car most; sold in the first quarter of 2023. All, however, at the expense of a reduction in profits.
The strategy of price cuts is one of the main reasons for this. has also been followed by other manufacturers but Stellantis does not intend to enter this “price war”. Position that is; was reiterated by the CEO Carlos Tavares during a visit to the French plants in Metz.
'WE WILL NOT CHASE TESLA'
Stellantis does not want to join Tesla in the price war in the automotive industry. Is not serious; this is our strategy for the next ten years, I don't think it's the right approach to follow for our Dare Forward 2030 plan.
In short, for the number one of the automotive group, the "price war" with continuous reductions in the price lists it is not; the right choice and goes in the opposite direction of the Dare Forward 2030 plan. Tavares, in fact, explains that Stellantis favors profitabilityrather than sales volumes in an absolute sense.
According to the CEO, Tesla is instead focusing more on sales. about growth and profitability. Stellantis' plan follows a very different path. The automaker therefore does not intend to participate in this race to the bottom of prices initiated by the company. by Elon Musk.
However, Tavares also adds that if the entire electric vehicle market were to lower prices, Stellantis at that point will have to pay off. adjust. In this case, the Group will have to accelerate, like all competitors, the reduction of costs to continue making the activities sustainable; business.
Cost reduction which is already envisaged in the Dare Forward 2030 plan but which could accelerate if market conditions change.
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