Jim Farley says Henry Ford used a similar strategy in 1913 to boost Model T sales, but it didn't end well.
Ford Motor Company CEO Jim Farley says Tesla's price war strategy for electric vehicles is not a new one.and protect volume over profit margins reminds Farley of 1913, when Henry Ford used a similar strategy to spur Model T sales. The executive told reporters last week that Musk's move is a play right out of Henry Ford's Model Y playbook, according to"Go read '1913.
The strategy is obviously impacting Tesla's profit margins, which investors understandably don't like, but. He told investors on the Q1 2023 earnings call that"it's better to ship a large number of cars at a lower margin, and, subsequently, harvest that margin in the future as we perfect autonomy."
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