FP StaffJan 16, 2023 18:21:03 IST
Tesla has decided to drop the prices of all EVs that it makes by up to 10 per cent in some cases, across the world in a bid to get more people to buy their offerings as opposed to those from rivalling EV manufacturers.
This comes as a surprise, as the move comes at a time when every other automaker is having trouble building enough electric vehicles to satisfy demand.
The Texas-based carmaker reduced pricing for several models by thousands of dollars over night in an effort to increase demand. The company’s stock price, which had already fallen by 70 per cent in 2022, was further impacted earlier this month when Tesla revealed it had missed its yearly production target by 20 per cent.
The price cut will start with the US and will be extended to all other countries where Tesla sell their vehicles, barring China since the Chinese market has seen prices being slashed by as much as 24 per cent in some cities, which led to massive protests by people who bought a Tesla in the last two months.
Now, the cheapest Tesla you can buy in the US, the Model 3 RWD, has dropped to $43,990, a $3,000 savings compared to 2022’s prices. Similarly, The Model 3 Long Range is currently unavailable, but the Model 3 Performance is $9,000 cheaper than before, at $53,990.
Many more Teslas now qualify for the updated clean car tax credits as a consequence of the price reductions. A five-seat Model Y Long Range didn’t qualify yesterday but will qualify for the full $7,500 today and at least until March when the US Treasury Department will start enforcing the domestic battery content requirements. This is because the rules changed in January, making many EVs only eligible if their MSRP is below $55,000.