Tesla Ignites A Price War – Suppliers Brace Cost Reductions
This article was originally published HERE
Tesla Inc suppliers are bracing for pressure from Chief Executive Elon Musk and his team to cut their prices further after the electric car leader aggressively slashed vehicle prices in a slowing economy, industry officials who work with the automaker and its suppliers said.
The suppliers saw as ominous last month’s comments by Tesla Chief Financial Officer Zach Kirkhorn that the carmaker was “attacking every other area of cost” including the supply chain, and would work closely with suppliers. During Tesla’s earnings conference call last week, Musk said a recession could lead to “meaningful decreases” in almost all its input costs.