Tesla will reduce the price of its best-selling electric vehicle (EV) models in the coming days. The electric car maker said that the prices of its cars would be dropped up to 20% in the US and Europe.
• Tesla announced a price cut of up to 20% on its best-selling EV models for the US and Europe
• The price cut is announced amid the tough competition Tesla is facing in the growing EV market
Why Is Tesla Reducing The Prices Of Its Bestselling EV Models?
Tesla started a price war with rivals, especially GM and Ford to retain its market share in the EV market. The price cut was announced on Friday and it had its impact on Tesla shares which fell as much as 4.5% in early trading on Friday. Though some were recovered later in the day. But overall Tesla’s shares have plummeted for more than a year.
What Do Experts Say About Tesla’s Price Cut?
The Wall Street Journal said in a report that the discount made that possible for buyers of Tesla’s US-built Model Y to take advantage of a tax credit in the US by bringing the price of the car below a $55,000 cap.
But Analyst Dan Ives of Wedbush Securities has a different opinion on Tesla. He said that that was no secret that demand for Tesla was starting to see some cracks in the global slowdown for 2023.
Dan Ives called the price cut the “right move” and “a clear shot across the bow at European automakers and US stalwarts (GM and Ford) that Tesla was not going to play nice in the sandbox.