Elon Musk’s exaggerated price cuts are worrying all companies in the automotive industry. TeslaAlthough it achieves high sales figures, it increases the number of customers by lowering prices almost every month. This policy, which allowed Tesla to gain superiority in the market, dates back to Ford’s time in the automotive industry. So much so that Tesla is not only a leader when it comes to pricing strategy, but also when it comes to vehicle names. Fords He was inspired by the movements he made in the past.

In addition to the price reduction policy, the company also focuses on naming. Looks inspired by Ford it seems. Because Tesla; It gives its vehicles names like Y, X and S. Another auto giant that did this years ago was It was Ford. between two companiesHistory is about repeating itself.Let’s look at the similarities that make you say “.

Ford’s description of a fast running horse:

Henry FordFirst of all “If I were to ask my clients what they want, they want a horse that runs faster!‘ he said. However, over time, Ford did not listen to the wishes of the customers and this was his biggest mistake.

The process in which Ford emerged’Every demand creates its own supply.It coincided with a period in which ‘principle’ was dominant. During this period there was a serious demand for cars and Ford wanted to become an automotive giant by giving people what they wanted. Ford’s strategy initially achieved its goal.

During this period, the business world emphasized efficiency. Over time, this led to Ford moving away from customer focus. During this period, Ford was successful by producing only the Model T and increasing efficiency. At one point the difference between the price of a horse-drawn carriage and a Model T has almost doubled.

On the other hand; GM had historic moves that emphasized user experience.

While these were playing out on the Ford front, GM President William C. (Billy) Durant didn’t know much about cars. By bringing many small companies together General engines (GM) He created a giant under his name. GM included several car brands. Alfred P. Sloan Jr. When he became president of GM, there were so many diversified vehicles and brands.

Alfred made it possible to separate brands based on customer profiles. Cadillac It was for the rich, Belly was for young people, Chevrolet was for working people. GM began to appeal to a broader customer base than Ford by offering color and size options that met customer preferences. Moreover, by renewing its vehicle models every year, the company managed to give customers the impression that their vehicles were becoming outdated. Credit and installment sales also played an important role in GM’s success.

In its competition with GM, Ford It collapsed due to lack of vision and inability to keep pace with the changing times. GM achieved success by taking strategic approaches.

It seems that Tesla’s policy has learned lessons from this.

Ford CEO Jim Farley said that looking at all of this, Tesla vehicle prices are rising today discount policy behind In Ford’s Model T He says this has to do with the strategy he has implemented.

Tesla, which like Ford doesn’t allocate a budget to update the design and improve the user experience in this way, continues to make software and interior design changes to the current model rather than making up the vehicle’s exterior design like other brands. This way you can save money by skipping the development process of new models. can lower prices.

However, Tesla’s low pricing policy with cheap labor It seems that this cannot cause enough repercussions in China. Chinese brand BYD, known as the second in the world in electric vehicle sales, ended October with a sales increase of 5% compared to the previous month and 38% compared to the previous year.

Tesla, which recently decided to produce its vehicles in China and gave up this decision after a short time and decided to produce its model at the cheapest price in Germany, will be in trouble if the same trend continues. He could lose to his Chinese rival.

Battery costs in electric vehicles are also falling.

According to the report shared by Midas, the cost of batteries in electric cars will gradually decrease in the coming years. This means that vehicle manufacturers in pricing It means it will be more comfortable.

When Tesla puts a cheap vehicle on the market, “even if it’s just a claim,” other companies are affected.

It has been in Tesla’s factory in Germany for a while. €25,000 It is said to bring a vehicle with a price tag. Once this problem came to light, it caused the shares of rival companies in China to fall.

While falling battery costs and other expenses benefit all electric vehicle manufacturers, Tesla is undoubtedly doing so in this regard. leading company. We will look at how this will take shape together in the near future.

Ford lost in the competition with GM because it followed the same policies that Tesla follows today. I wonder? Will Tesla end up the same? Or will Tesla make a step that fits the current dynamics?

However, one of the biggest messages that Tesla has announced to the auto industry is that it is an autonomous car brand and not a regular car brand. Therefore, it leaves the vehicle’s performance in the background It focuses on software in general. Of course, time will tell us how sustainable this concept is.