Tesla Model S

Tesla Slashes Prices To Better Compete

AUSTIN, TX – Electric automaker Tesla has slashed the prices of its vehicles in the United States and Europe by as much as 20 percent in a move to counter growing competition and slowing sales.

The least expensive version of its entry-level Model 3 now sells for slightly less than $44,000, a drop of about $3,000 or six-plus percent. The price of the gutsier Model 3 Performance is been reduced to $54,000 from $63,000. That’s a drop of more than 14 percent.

An even larger price decrease can be found for the Model Y. It has dropped to $53,000 from $63,000, a nearly 20 percent decline.

Tesla Model Y

The discounts are aimed at making Tesla models available to shoppers who previously couldn’t afford them. The will also help bring some cars under the price cap for a $7,500 federal tax credit.

Tesla sold more than 1.3 million vehicles in 2022, which was a 40 percent increase from 2021, but was less than the company expected. While it delivered 1,313,851 vehicles, it produced 1,369,611, leaving a backlog of 55,760 vehicles. A sales shortfall of 34,423 was registered in the fourth quarter.

Tesla Model S (here and at top)

Tesla’s move suggests an EV price war. Discounts could help boost overall sales of battery-powered vehicles as more automakers bring out electric models.

A week ago, Ford revealed its EV sales for 2021 and declared itself “the second largest automaker of electric vehicles in America.” Sales of its Mustang Mach-E SUV rose 45.4 percent over 2021.

Tesla Model Y

(Photos courtesy of Tesla)

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