We have actual news about actual Tesla price cuts. Then we have Elon Musk hinting at exciting new developments, but delaying the actual announcements. Then we have real bidding on possibly revolutionary factories. Nobody can keep this all straight. Certainly I can't.
Or as the nerd proverb puts it,
In theory, there is no difference between theory and practice, but in practice there always is.
Anyway, it's pleasant to be able to lead off with facts.
Tesla lowers Model S, Model 3, and Model X pricing in eve of coming battery milestones — Teslarati
With such a widespread change in its vehicle pricing, speculations have emerged from the Tesla community about the reason behind the company’s recent adjustments. While some news outlets have noted that the reductions were likely implemented to boost wavering demand, a significant portion of the electric vehicle community are speculating that Tesla may have simply reached a point where its operations have become more efficient, and its production costs have gotten more optimized.
Interestingly, such a scenario was mentioned by the company in its first quarter earnings call, when Chief Finance Officer Zachary Kirkhorn mentioned that the Gigafactory Shanghai produced Model 3 still has a lot of potential for further price reductions. This, of course, becomes particularly notable when one considers Tesla’s battery innovations.
The Silicon Valley-based carmaker was expected to hold a Battery Day event this month, but the event was postponed partly due to the onset of the coronavirus. Speculations are abounding about what Battery Day is poised to reveal, with many in the EV community estimating that Tesla will be announcing several milestones, such as a million-mile battery and a system that allows the company to produce cells at around $100/kWh or cheaper. If Tesla is indeed close to these milestones, then a reduction to its vehicles’s [sic; their solecisms's astonishment level is new to me] prices may definitely be warranted.