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Musk responded to Tesla's price reduction: if many people can't afford it, then demand is meaningless.

2025-01-15 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Xiao Zhan for the clue delivery! According to CTOnews.com on April 9, Tesla Automobile is the market leader in electric vehicles. However, there is one difference in this company, that is, it spends almost no money on advertising. After Tesla cut vehicle prices again this week, fund manager Ross Gerber expressed dissatisfaction with his lack of advertising.

Elon Musk, one of Tesla's founders and now chief executive, responded to questions from the fund manager on Twitter, explaining why Tesla did not advertise. He says many wealthy critics do not understand that demand for scale is limited by affordability. There is a lot of demand for Tesla's products, but if the price exceeds people's affordability, then the demand is meaningless.

According to CTOnews.com, Tesla's marketing strategy mainly depends on word-of-mouth and social media marketing. Tesla has neither a dedicated marketing department nor a chief marketing officer. The company uses Musk's influence, as well as other loyal users and fans to share and recommend to improve brand awareness and image.

This week, Tesla adjusted the price of the models on sale in the United States, reducing the price of the two existing Model Y models by $2000, the price of two Model 3 models by $1000, and the starting price of the Model S / X by 9.5%. When Tesla adjusted prices in China in January this year, Tao Lin, vice president of external affairs of Tesla, posted Weibo, saying, "behind Tesla's price adjustment, there are numerous engineering innovations. In essence, it is a unique excellent law for cost control: including not limited to vehicle integrated design, production line design, supply chain management, and even optimizing robotic arm coordination routes in milliseconds." Proceed from the 'first principle' and insist on pricing at cost. "

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