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Tesla has cut the prices.

 

Tesla cut prices

Tesla has cut prices by up to a fifth across the US and Europe to lift demand for its electric vehicles in the face of an economic slowdown and fiercer competition from established brands. The electric-car maker said that the cuts, which industry figures say take prices to their lowest level in two years, were in response to falling supply-chain costs and lower costs from shifting components closer to factories. Some Tesla customers protested against the Chinese cuts outside showrooms in Shanghai, Wuhan and Shenzhen this month. Tesla in Europe has attempted to avoid similar criticism by saying it will pass price cuts to customers who have ordered vehicles.

In the US, Tesla cut prices by up to $13,000 across its range, reducing the price of some models by up to a fifth, according to changes on its website. Tesla said that the cuts took the entry-level cost of a Model 3 in the UK to £42,900, with the higher-riding Model Y cut to £44,900. The move comes as shares in the group have fallen more than two-thirds in the past year over concerns about slowing demand, just as the company opened factories in Berlin and Shanghai and rivals including Volkswagen and Hyundai are seeing sharp rises in their sales of electric vehicles. The reductions were an "offensive move" by Tesla that could raise demand by up to 15 per cent in the coming year.

"Fiona Howarth, chief executive of leasing group Octopus Electric Vehicles, said that the cuts would make Tesla cars "increasingly affordable. "Tesla, which does not run through traditional dealerships but sets prices centrally, raises or lowers prices as demand and supply fluctuate. "It has been steadily growing its prices because of the strength of demand for electric cars and as costs rise across the industry. The cuts come after a year where Tesla's sales rose 40 per cent to 1.3mn.

In the UK, its Model Y was the biggest-selling electric car and the third-biggest seller overall. However, as leading economies brace for an economic slowdown, the car industry has been waiting for a drop in orders, something investors and analysts say is likely to hit Tesla first because of its shorter order book.

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Comments

  1. Marcus15 January 2023 at 13:44

    Since they have new factories, Tesla needs to sell more so these cuts are the way to go to achieve that goal. Consumers will be the big winners as they can now choose between a Tesla or Hyundai and Volkswagen since each has an appealing price tag.

    ReplyDelete
  2. Roy15 January 2023 at 14:21

    Demand will probably rise by 10-12% because of the lower prices. I don't think it will reach the desired 15% Tesla is aiming for.

    ReplyDelete
  3. Audrey15 January 2023 at 14:47

    Lots of people are still having money problems so even though this measure will increase sales, lots won't afford a Tesla still. When the economy recovers and prices stop going up and up, then sales for a Tesla will go considerably up.

    ReplyDelete

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