In this episode of The Accidental Marketer podcast, Mary, Tom, and Sean discuss Tesla as a case study for pricing strategies in the evolving electric vehicle market. They highlight how Tesla has dropped its prices twice in recent months, resulting in a reduction of over 20% on some models.

The hosts explore the reasons behind this pricing strategy, including potential motives such as stimulating demand, maximizing margins, maximizing factory capacity, or creating barriers to entry. The conversation also touches on the association of Elon Musk with Tesla’s brand and the potential effects of discounting on Tesla’s image and customer perception.

In this episode you will learn: 

  • Why price changes can significantly affect brand positioning.
  • How critical capabilities can reshape traditional industry approaches to pricing.
  • How pricing moves impact the perception of luxury brands


  • “(Tesla’s) supply/demand has been getting out of whack so this was strategic.”
  • “People are not used to (this kind of) discount in the car industry.”
  • “What is Tesla’s brand (image), and how will it inform strategy decisions from here?”

We hope you enjoy the discussion and gain some helpful insights.