Can Tesla Make Money on Discounted Cars? Yes.

Group 1: Price Cuts and Market Strategy - Tesla Inc. has reduced prices on most of its models in the United States, Germany, and China, likely to attract customers away from competitors and encourage potential EV buyers to enter the market [3] - The price cuts average around $2,000, which is approximately 3% of the average sticker price of Tesla vehicles [5] - Despite concerns about profitability, evidence suggests Tesla can maintain margins even with these discounts, as most other car manufacturers incur significant losses on EV sales [5] Group 2: Full Self-Driving Feature - The price for Tesla's Full Self-Driving mode has been reduced from $12,000 to $8,000, which is a significant discount [5] - The EBITDA margin for Tesla was reported at 15.7% on automotive revenue of $21.6 billion, down from 16.1% in the previous quarter [5] - The margin on software features like Full Self-Driving could be as high as 90%, indicating strong profitability potential despite the price cuts [5]