Elon Musk, the CEO of Tesla Inc, recently commented on the controversy surrounding Tesla's pricing strategy, particularly in regards to the Full Self-Driving (FSD) feature. Musk explained that Tesla's vehicle prices undergo frequent changes to align with production levels and market demand, emphasizing that the Manufacturer’s Suggested Retail Price (MSRP) does not reflect the real cost, stating, “Only a fool thinks the ‘MSRP’ is the real price."
Musk's remarks were prompted by criticisms from various users, including a tweet by Whole Mars Catalog (Supervised) questioning Tesla's pricing strategy. Another user speculated that Tesla's unique ability to adjust prices in response to market conditions sets it apart from traditional automakers constrained by the dealership model. This discussion takes place amidst a series of recent price adjustments by Tesla, including reducing prices of electric vehicles in China and slashing the U.S. FSD price by $4,000 to stay competitive in the global market.
In addition, Musk hinted at the imminent launch of the FSD feature in China, with expectations that the FSD software, currently in 'beta,' will reach its full potential by late April or May. These developments are significant as Tesla prepares to disclose its first-quarter financial results, following recent layoffs that have impacted the company's stock performance. Amidst this pricing debate and upcoming financial reporting, Tesla's position in the market and the performance of its innovative features like FSD are under scrutiny.