A Kano diagram could provide insights into how Tesla's decision to lower prices affected customer satisfaction. It could show whether this decision moved certain features of Tesla's cars from being 'performance' attributes (where more is better) to 'must-be' attributes (basic expectations). It could also reveal if any features became 'delighters' as a result of the price reduction. However, without specific data, this is speculative.

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Product Management Toolkit (Part 2)

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When Tesla decided to lower the price of all its North American electric vehicles in May 2020, the market initially saw this as bad news. Traditionally, automakers use discounts as incentives to increase sales during periods of low demand. However, because Tesla is a tech and automotive company, Tesla wanted to reduce costs to increase its product availability. Because price sensitivity is a huge factor to EV adoption, lower prices dramatically increased the amount of cars Tesla sold in the US in the following months.

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Tesla's decision to lower the price of its electric vehicles could potentially influence government policies in several ways. Firstly, it could encourage governments to provide more incentives for electric vehicle adoption, as lower prices could lead to increased demand. Secondly, it could prompt governments to invest more in infrastructure for electric vehicles, such as charging stations. Lastly, it could lead to stricter emissions standards, as more affordable electric vehicles could make it easier for governments to enforce such standards.

Increased adoption of electric vehicles can have several societal implications. Firstly, it can lead to a significant reduction in greenhouse gas emissions, contributing to the fight against climate change. Secondly, it can lead to a decrease in dependence on fossil fuels, promoting energy independence. Thirdly, it can stimulate economic growth by creating jobs in the electric vehicle industry. Lastly, it can improve public health by reducing air pollution.

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