Elon isn't one to follow the traditional auto model where the...

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    Elon isn't one to follow the traditional auto model where the manufacturer and their dealers adjust their prices very cautiously and usually consider the resale value of their customers vehicles before making any big moves. If old inventory needs to be moved the traditional way is to add cheap or no cost options rather than large cuts to retail prices and if demand is high then they just allow the wait list to grow longer.

    Tesla just adjusts their prices to meet demand which can be rather disappointing for someone like Hertz who paid top dollar for hundreds of Model 3 only to find that Tesla dropped their prices and consequently the resale value of their EV investment plummeted along with anyone else who had purchased a Tesla in the last couple of months.

    Although it does put his customers offside it does allow Tesla to react very quickly to market conditions and similarly with his employees, Tesla doesn't have a unionised workforce so Elon can and does adjust their numbers to suit market conditions as well.
 
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