Fundamental Analysis of Tesla - TSLA

They are intentionally raising the price of their cars because the demand is far exceeding the supply. So much so that they don’t even need to give Hertz any kind of special volume order deal, which is unheard of.

Their cost of production per vehicle will continue to fall, and their profits per vehicle due to economy of scale and efficiency will continue to go up once the 2 gigafactories come online, as well as the continued reduction in battery costs.

Once they meet the 6 month back orders, if demand is met they may well lower prices again, however they won’t run out of people buying, as each year the addressable ev market is growing faster than demand as the world transitions due to climate fears, tighter ice regulations, ev cost parity and rising petrol prices.

They are executing perfectly on their plans.