From Fortune Magazine:

Elon Musk is blaming colder temperatures for a $1,000 discount on the Tesla Model Y, citing decreased demand for cars in winter. Tesla also slashed prices globally, causing turmoil for used Tesla values, and is offering a lower Model Y price until February. Critics argue that Musk’s repeated discounts create a vicious cycle of postponement for buyers.

Legacy carmakers have also used price cuts but have become adept at hiding them. Unlike traditional brands, Tesla’s one standard price and limited product range expose its price cuts. Musk claims there is a demand for the Model Y from consumers who are waiting to order once they can stretch their budget, but industry data suggests that most American car buyers can already afford a Model Y.

Tesla is under pressure to sell 30% more cars this year to keep its factories running at full capacity despite shutting down its Germany Model Y plant due to shipping attacks. This situation has led Musk to admit that there is a limit to how many people want a Tesla. He noted the challenge of year-round factory production and the seasonal nature of consumer demand, explaining the slow construction of its Mexico plant.



Read more: Elon Musk finds new excuse for Tesla price cuts—winter