Tesla and Ford were among the manufacturers making noteworthy cuts the last couple months, with the latter predicting new-vehicle pricing will fall 5% in the US this year. Elon Musk embellished a bit Wednesday when he suggested Tesla had made minor adjustments(1) to the cost of its models and described affordability as a limiting factor for the company.
For much of the past three years, car prices knew one direction: upward.
This was simple economics: There was far more demand for new vehicles than manufacturers could meet due to pandemic-related disruptions. As chips, wire harnesses and other components in short supply flow more freely again, a slow but inevitable march to normalization has begun.
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