DObviously, the consumer is unpredictable, as is the importance he attaches to the price of things. Since the invention of economics at the turn of the 18th centurye century, the greatest intellectuals are tearing their hair out to unravel the mysteries of the right price. This Wednesday, October 18 provides us with two good illustrations of this with the quarterly results of Tesla and Netflix. The first has lowered its prices drastically since the start of the year and yet sees the growth in its sales slowing more than expected, while the second does not hesitate to increase its prices and yet is gaining customers at a record pace. .
Of course, the situation is different. The industrial company Tesla is facing serious headwinds, as its boss Elon Musk has admitted. The first of these is rising rates. By slowing down the economy, it empties customers’ wallets. Turnover increased by 9%, well below previous years, and production was down significantly compared to the second quarter of this year. As a result, net profit plummets by more than 40% compared to 2022. The fault is not only the rise in the cost of living but also factory shutdowns for maintenance and to prepare for the expected release of the Cybertruck, a pick -up futuristic all in angles and stainless steel, Elon Musk’s new crazy bet.
Ahead of the competition
For its part, Netflix has decided to raise its prices while making stowaways pay. Those who shared the same code between family, friends and cousins were asked to checkout to continue following the adventures of Lupin or Elizabeth II. And everyone endured a rise in prices that far exceeded inflation. Surprisingly, it worked. Over the last quarter, Netflix gained 9 million additional subscribers, its biggest increase since the golden period of 2020 confinement.
Beyond the economic differences, these two pioneers born in California share the same asset, their edge over the competition. Car manufacturers are years behind Telsa in the electric sector and Netflix maintains the loyalty of its customers through its abundant production. For the moment. Because Tesla sees the rise of Chinese competitors and must renew its range, just like Netflix, faced with the offensive of the cinema giants, Disney, Warner, Paramount. It will still spend 13 billion dollars (12.33 billion euros) this year to maintain its leadership in production and 14 billion in 2024. Like Telsa, controlling prices is definitely costing it dearly.