Tesla announced late Thursday in US time that it is implementing a price cut in its electric vehicles (EVs) in the US and Europe, according to Reuters.
This move of the automaker company is an apparent attempt to boost the sales of its EVs.
The company decided to implement the new strategy of aggressive discounting after missing the Wall Street estimates for deliveries.
Various Tesla EVs Saw Price Cuts
According to Engadget, Tesla cut the price of the Model 3 RWD from $46,990 to $43,990. The said model is the least expensive EV of the company.
Meanwhile, the 5-seat Model Y Long Range dropped by 20 percent. From $65,990, it is now priced at $52,990.
With the new price of the Model Y Long Range, it now qualified for the $7,500 US Federal Tax credit, meaning the final price discount will be $20,500. It is over 30 percent of the original price.
In addition, all other models of Tesla, including the Model S and Model X, both regular and plaid versions, saw price cuts.
Moreover, the prices of performance versions of the Model 3 and Model Y were also slashed.
On the contrary, the 7-seat vehicle on the Model Y has increased in price by $1,000 to $4,000. It now puts the EV's price at over $55,000.
But while the 7-seat vehicle on the Model Y saw a price increase, it still qualifies for the Tax Credit since it is considered to be an SUV.
Meanwhile, in Germany, Tesla cut prices on the Model 3 and the Model Y, the company's global top-sellers.
The price cut in Germany is between about 1% and almost 17% depending on the configuration. In addition, the company also cut prices in Austria, Switzerland, and France.
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Tesla Cuts Prices of its EVs in Japan, China, and South Korea
Previously, Tesla also cut prices of EVs in Asian countries such as China, South Korea, and Japan. On Friday, the automaker company announced a second price cut in China.
According to Nikkei, the coordinated price cuts in Asia were part of the company's effort to help stoke demand for Tesla's output at its Shanghai factory.
The price cut was the company's first major move since it appointed its lead executive for China and Asia, Tom Zhu, to oversee global output and deliveries.
According to Reuters' calculation, the latest cut in China, along with a price cut in October means a 13 to 24 percent reduction in Tesla's prices from September in its second-largest market.
Tesla slashed prices for all versions of its Model 3 and Model Y cars in China on Friday by between 6 to 13.5 percent. The company slashed the prices of its EVs in Japan on the same day.
Prices of Model 3 and Model Y cars were cut by about 10% each in Japan. This is the first time the automaker company had done it since 2021. Currently, the price for the Model 3 rear-wheel drive version is now $40,091.
The price cuts in Tesla's EVs came just days after Beijing ended a subsidy program that helped build the world's largest EV market.
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