Tesla cuts EV prices in US and Europe by up to 20% – Technology Org

Now Tesla cars cost much cheaper basically everywhere in the world.

A Tesla vehicle - illustrative photo.

A Tesla vehicle – illustrative photo. Image credit: Chris Yarzab via Flickr, CC BY 2.0

Following price slashes in China and other Asian countries, Tesla has extended the same marketing decision to the US and European countries.

Discounts on its EV models now reach up to 20% compared to earlier prices.

This decision was made with the aim to drive more demand for the company’s products in order to maintain the volume growth, even if it meant reducing the level of profits. Recently Tesla faced tougher competition from other manufacturers, while the overall global demand for new cars was also lower than expected.

Following the news about extended discounts, Tesla’s shares dropped 4.5%.

The decision to lower prices on its models means that the world’s largest producer of electric cars is making a transition from its earlier strategy to remain in the ‘premium’ product segment toward a wider adoption in the market.

Last year, Tesla CEO Elon Musk mentioned that prices are at a level where they negatively impact demand. Experts believe new pricing has a good potential to boost Tesla sales in 2023.

Meanwhile, recent buyers of Tesla cars are not quite happy, as the newly introduced discounts substantially decreased the value of their recent purchases, instantly reducing the re-sale prices.

Leave a Reply

Your email address will not be published. Required fields are marked *