Tesla, Inc.

Tesla’s pricing power is limited by intense competition and cyclical demand. While Tesla has traditionally commanded premium pricing, it has frequently cut prices to stimulate sales when incentives ended or rivals lowered theirs.

Gross margins (~17% in recent quarters) are decent but declining as regulatory credits fall and price incentives increase. Chinese rivals now offer advanced driver-assist features at a lower price, making it hard for Tesla to raise prices without losing market share.

There’s no clear trend of sustainable margin expansion, so we assign a low score on pricing power.