“The Way To Beat The End Boss”: Chamath Palihapitiya Praises Tesla’s Aggressive Price Cutting

Canadian VC and self-labeled “SPAC Jesus” Chamath Palihapitiya was out over Labor Day weekend praising the velocity and aggressiveness of Tesla’s value cuts, which we now have been documenting at size because the starting of 2023. 

Praising Musk and Tesla, Palihapitiya tweeted out a chart of Tesla’s most up-to-date value cuts, stating: “I was shocked when I saw this chart. The speed and aggressiveness with which $TSLA is cutting prices is the way to beat the End Boss. (Rapidly increasing price affordability) x (constantly improving hardware and software) = super maximized market demand.”

“This is a lethal combination which we haven’t seen play out in any modern market before,” he added. 

“Some companies cut prices, but most keep prices flat or increase them,” he added. “Some companies improve products quickly. But no one has actually given you more for less on such a big ticket purchase so frequently.”

Tesla’s current value cuts have been a subject of debate since January as a result of, to this point, they’ve been efficient in spurring demand and placing strain on legacy automakers. Tesla continues to make aggressive cuts, as we wrote about simply days in the past. 

Tesla reduce costs on its Model S Plaid car in China most just lately, to 828,900 yuan from 1.03m yuan, a reduce of about 19%. Bloomberg reported final week that Tesla was additionally reducing the worth of its Model S to 698,900 yuan from 808,900 yuan, its Model X to 738,900 yuan from 898,900 yuan and its Model X Plaid to 838,900 yuan from 1.06m yuan.

These cuts adopted extra value cuts in China that happened solely about two weeks in the past. Recall we reported on August 16 that Tesla’s Model S value was being reduce 6.7% to 754,900 yuan ($103,477) from 808,900 yuan prior and the corporate’s Model X was priced 6.9% decrease at 836,900 yuan, down from 898,900, according to Reuters. 

Earlier in August, information broke that Tesla was including new, lower-range iterations of its Model S and Model X that might be priced $10,000 decrease than earlier base costs, Yahoo reported. The commonplace vary Model S will begin at $78,490 and can provide 320 miles of vary and the usual vary Model X will now be priced $88,490 and can have a variety of 269 miles per cost, the report says.