[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]As demand slows against the backdrop of a faltering economy, Tesla Inc (TSLA.O) has lowered pricing for its electric vehicles in the United States and Europe, doubling down on a discount push it launched in Asia.
The Elon Musk-led company suffered with supply chain issues and a downturn in demand brought on by mounting recession fears in 2022, which prevented it from meeting its goal to increase deliveries by 50% annually. Musk has nevertheless predicted that the automaker will produce 2 million cars by 2023 as price reduction increase consumer demand.
Sales of Tesla vehicles built in China increased 18% in January compared to a five-month low in December. It increased 12.6% in February.
Details on the price reductions:
CHINA
According to calculations by Reuters, Tesla reduced pricing for all versions of its Model 3 and Model Y automobiles in China from 6.0% to 13.5% in January.
However, the automaker increased the cost of the performance and long-range Model Y mid-size sport utility vehicles (SUV) in China in February.
The two versions of the Model Y in China saw their beginning costs rise by 2,000 yuan each in the second such price hike, to 311,900 yuan ($44,983.20) and 361,900 yuan.
The long-range Model Y is 13% less expensive than it was before the price decreases, while the performance model is still 9% less expensive.
JAPAN
For the first time since 2021, Tesla lowered the pricing of its Model 3 and Model Y vehicles in the nation by nearly 10% each. The cost of the Model 3 rear-wheel drive version has decreased from 5.964 million yen to 5.369 million yen ($39,501.18).
SOUTH KOREA
According to a local Tesla sales official, Tesla’s price reductions in the nation varied depending on the model but ranged from roughly 6 million won to 10 million won ($7,702.74).
On Friday, Tesla’s website showed the base Model 3 rear-wheel drive car’s price as 64.34 million won ($50,637). It cost 84.999 million won for its Model Y Long Range sports utility vehicle.
UNITED STATES
According to calculations by Reuters, Tesla’s U.S. price reductions on its top-selling global models, the Model 3 sedan and Model Y crossover SUV, ranged from 6% to 20%.
After that, it increased the cost of the Model Y by at least three times. Nonetheless, for US buyers, the Model Y is currently around 16% less expensive than it was in early January.
In the US, the business also reduced the cost of its Model X luxury crossover SUV by 9% and its Model S sedan by 4%.
GERMANY
Depending on the configuration, Tesla reduced the cost of the Model 3 and the Model Y by anywhere from 1% to approximately 17%.
FRANCE
Customers who purchase the Model 3 for 44,990 euros ($47,860.36) will now receive a further price reduction of 5,000 euros in the form of a government rebate. The EV program’s highest limit is 47,000 euros.
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