Skip to main content

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.

www.sba.tax

Labels:

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

Post a Comment

Cloud Bookkeeping

HS2 cost cuts new routes and add delays.

 Trans­port depart­ment offi­cials have begun work on «Project Sil­ver­light» sug­gest­ing the high­speed rail scheme might face four addi­tional years of delay. The planned High Speed 2 rail line faces fur­ther delays of up to four years and more cuts to the project under plans being drawn up by min­is­ters to rein in its bal­loon­ing costs. The extra delays to the coun­try’s biggest infra­struc­ture project would mean that it would not be com­pleted until as late as 2045 — 12 years after ori­gin­ally planned. «This is a func­tion of infla­tion; we are hav­ing to find huge sav­ings because the cost of everything the depart­ment is already doing will have become so much more expens­ive by then,» said one gov­ern­ment offi­cial. In Octo­ber, the FT repor­ted that the Treas­ury had asked HS2’s man­age­ment team to identify poten­tial cuts or «scope reduc­tions» to the high-speed line. Trans­port depart­ment offi­cials have sub­sequently begun work on Project Sil­ver­light aimed at fi...
4 comments
Read more

Small business will be excluded from fraud law.

  Min­is­ters are plan­ning to exclude small busi­nesses from anti-fraud legis­la­tion by nar­row­ing the scope of a crim­inal offence tar­get­ing com­pan­ies that fail to pre­vent eco­nomic crimes. MPs and anti-cor­rup­tion cam­paign­ers had hoped the gov­ern­ment would seek to amend the eco­nomic crime and cor­por­ate trans­par­ency bill to ensure the new offence covered all com­pan­ies. The plans to limit the scope of the amend­ments will also dis­ap­point those who had hoped the legis­la­tion would remove key hurdles to the pro­sec­u­tion of white-col­lar crime. A new «fail­ure to pre­vent» offence for fraud would bring it in line with exist­ing sim­ilar cor­por­ate offences for bribery and tax eva­sion. At present, pro­sec­utors need only prove that organ­isa­tions lacked «reas­on­able» or «adequate» con­trols to pur­sue the offence in bribery and tax eva­sion cases. «It would be much more sens­ible for the gov­ern­ment to provide strong guid­ance for SMEs on what these pro­ce...
3 comments
Read more

Doubt on CS's collateral.

  Credit Suisse provided an emergency $140mn loan to Greensill Capital based partly on invoices to companies that deny ever doing the business stated on the documents. The Swiss bank provided the loan in October 2020, less than five months before the collapse of Greensill, a supply chain finance firm that counted former British prime minister David Cameron as a senior adviser. Invoices issued by metals magnate Sanjeev Gupta’s Liberty Commodities and sold to Greensill formed part of the collateral for the loan, according to documents seen by the Financial Times and people familiar with the transaction. Yet several of the parties named on the invoices have told the FT they did no business with Liberty. GFG has consistently denied any wrongdoing. Credit Suisse’s loan had a clause dictating that the collateral value had to be equal to or greater than the $140mn borrowed. The terms of the debt agreement only allowed invoices on Green-sill’s balance sheet to count towards this tally if t...
2 comments
Read more