EV-related news

Last year, Tesla vacated their showroom at NJ’s Short Hills Mall, and Polestar moved into that space. However, it appears to me that Polestar doesn’t get as much foot traffic in that showroom as Tesla used to get, and Lucid’s showroom in the same mall also looks like it gets much more foot traffic than Polestar does. This article might provide some insight into that situation, as well as Polestar’s and Lucid’s reactions to Tesla’s price cuts.

While Polestar had operating losses they still had gross profit. That tells me they are still making money. Tesla is in a better position to cut prices since they have been in the EV business longer. It is reasonable to think that they have recovered significantly more of their nonrecurring costs of startup and can pass that on to new customers if they want. Another part of the Tesla price cuts was to make more vehicles eligible for the federal tax credit. Without the price change only the base Model 3 would be eligible but now the long range version is too. If only the long range price dropped no one would have bought the base model since the prices would have been too close. A similar situation exists for the Model Y.