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Category: Case Study

Subcategory: Economics

Level: University

Pages: 1

Words: 550

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Tesla’s Tiered Pricing Is a Hurdle, but a Fair One
Tesla model, the pioneering Car Company, offers two variations of models with different software codes. The car’s price starts at $35,000 for the unrestricted models. Tesla engages in price discrimination where it charges different prices for the same service or good. Although Tesla has provided a free upgrade on its customers, it has provoked a backlash from critics with complaints on the model’s restriction. The Tesla’s pricing practices offer the features that make its models look attractive. Its models, despite the problems it is experiencing, it receives good ratings especially due to safety and environmental friendly. Investing extensively in the fast-charging stations, Tesla has developed a network.
Since the features of the Tesla model were costly to develop, its models begin at $68,000. However, a full model is sold at $160,000 to cover the development costs. As a result, Tesla is achieving higher scales that promotes its models ADDIN CSL_CITATION {“citationItems”:[{“id”:”ITEM-1″,”itemData”:{“URL”:”https://www.nytimes.com/2017/10/27/business/teslas-pricing-hurdle-not-hindrance.html”,”accessed”:{“date-parts”:[[“2018″,”11″,”5″]]},”author”:[{“dropping-particle”:””,”family”:”Robert H. Frank”,”given”:””,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””}],”id”:”ITEM-1″,”issued”:{“date-parts”:[[“0″]]},”title”:”Tesla’s Tiered Pricing Is a Hurdle, but …

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