Tesla has cut the prices of its top-selling electric cars in the United States and European countries such as Germany, France, Switzerland and Austria by 20 per cent, according to a The New York Times report. These lower prices are due to a lack of demand after the company failed to miss their Q4 targets in 2022.
Why has Elon Musk’s Tesla lowered the price of its electric vehicles?
Tesla reduced the prices after its quarterly deliveries fell short of market estimates, which were caused due to ongoing logistical issues and slowing demand. The carmaker also lowered its EV prices in European markets such as Germany, Austria, Switzerland, and France. The price cuts for Model 3 and Model Y in Germany range between 1 to 17 per cent, as reported by Reuters.
Commenting on this move, Dan Ives, a Wedbush analyst explains: “I think Tesla recognizes they are not the only game in town and the Detroit companies are jumping into the deep end with E.V.s. I think the price cuts mean Tesla is going to rip the Band-Aid off and try to go on the offensive.”
Which Tesla car models have had their prices lowered?
The EV maker has cut prices of their best-selling electric cars – Model 3 and Model Y – in the USA. It has also done the same for its flagship Model S and Model X. Not just that, but it has also cut prices by as much as USD 21,000 for the Model S Plaid.
According to The Driven, these are the reduced prices of Tesla’s electric cars:
Tesla Model S: Reduced from USD 104,990 to USD 94,990
Tesla Model S Plaid: Reduced from USD 135,990 to USD 114,990
Tesla Model X: Reduced from USD 120,990 to USD 109,990
Tesla Model X Plaid: Reduced from USD 138,990 to USD 119,990
The newly launched discounts might make electric cars affordable, with American and French buyers expected to take full advantage of both the discounts and federal tax credits, which are available in both countries for certain electric vehicle purchases.
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(Hero and feature image credit: Courtesy Instagram/ Tesla)