Tesla has decided to drop the prices of all EVs that it makes by up to 10 percent, in some cases, across the world to get more people to buy their offerings as opposed to those from rivaling EV manufacturers.
This is a surprise, as the move comes when every other automaker has trouble building enough electric vehicles to satisfy demand.
The Texas-based carmaker reduced pricing for several models by thousands of dollars overnight to increase demand. The company’s stock price, which had already fallen by 70 percent in 2022, was further impacted earlier this month when Tesla revealed it had missed its yearly production target by 20 percent.
The price cut will start in the US. It will be extended to all other countries where Tesla sells their vehicles, barring China since the Chinese market has seen prices slashed by as much as 24 percent 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 unavailable, but the Model 3 Performance is $9,000 cheaper than before, at $53,990.
Due to the price reductions, many more Teslas now qualify for the updated, clean car tax credits. A five-seat Model Y Long Range didn’t train yesterday but will be eligible for the $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 exceeds $55,000.