Sweden, Göteborg: A Tesla S car sits in the window of the Tesla Motors automotive store downtown
A Model S car pictured in a Tesla store in Europe.
  • Tesla keeps lowering the price of its cars.
  • It's taken a margin hit, but its input costs are going down too. 
  • The price cuts have helped Tesla stay ahead of the competition. 

Tesla's price war sent shock waves through the industry, and the fallout is far from over.