Why Tesla's Cheapest Model Is Now $46,990

The video discusses Tesla's recent price hikes amid inflation, highlighting its strong demand and supply constraints. Tesla's ability to adjust prices is linked to its focus on maintaining high gross margins, a strategy not commonly seen in the industry. The video also explores how other car manufacturers like GM and VW are responding to similar economic pressures by raising prices, though they face more challenges than Tesla due to less flexibility and visibility in supply contracts.

What is one reason Tesla can adjust its pricing effectively?

• Strong market demand and supply constraints

• High supply of raw materials

• Low demand for its vehicles

• Government subsidies

Why are investors particularly interested in Tesla's gross margins?

• They are lower than the industry average

• They are significantly higher than the industry average

• They are not disclosed publicly

• They are the same as the industry average

How does Tesla's pricing strategy relate to its financial goals?

• To reduce vehicle sales

• To eliminate competition

• To increase production costs

• To protect its high gross margins

What action has GM taken in response to rising costs?

• Stopped production of SUVs

• Raised prices on premium SUVs

• Lowered prices on all models

• Increased advertising budget

What advantage does Tesla have over other car manufacturers like GM and VW?

• Higher production capacity

• Short-term supply contracts

• More government support

• Long-term supply contracts and better visibility on costs