Tesla slashes prices for cars in Europe, Israel, and Singapore
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Tesla has slashed the prices of its cars in Europe, Israel, and Singapore. The electric vehicle manufacturer has expanded the global discount drive that commenced in China in January this year. Tesla, like many automakers, has been looking to maximize its revenues and profits by increasing sales.
Tesla slashes prices for some electric vehicles
Last week, the leading EV maker, Tesla, announced that the deliverables for the first quarter had increased by 4% from what was reported during the previous quarter. The growth comes despite the EV maker offering discounts across multiple markets such as Australia, China, Japan, South Korea, and the United States.
Days after the EV maker shared this delivery data that failed to meet market expectations, the company announced a fifth vehicle price reduction in 2023 for the US market. Tesla has been aggressively trying to outperform other EV makers in the US as the Biden administration looks to implement tough measures that will limit EV tax credits.
Tesla has difficulty meeting projections, analyst estimates, and market projections. Last year, the company’s CEO, Elon Musk, predicted that the company would hit a delivery target of 50% growth. Instead, the company reported a 40% growth, with the discrepancy attributed to issues with logistics and declining demand.
Tesla slashes prices globally
Tesla’s strategy of slashing prices to create more sales is not just being seen in the US market. On Friday, the company also announced plans to trim prices across European markets such as France and Germany. The company attributed the declining costs to scaling up its operations and improving its production capacity.
Tesla lowered prices significantly for some models in the German market. The EV maker dropped the prices of its Model 3 and Model Y cars by 4.5% and 9.8%. The drop marked the second time the EV maker was lowering prices this year following a reduction of between 1 and 17% in January.
The same discounting strategy was also used for the Singaporean market. In Singapore, Tesla slated the prices for its Model 3 and Model Y vehicles by between 4.3% and 5%, according to the data on the company’s local website. The same was also seen in Israel, where the company slashed the price of the rear-wheel drive Model 3 by 25% after an initial round of price drops globally at the start of 2023.
The Tesla CEO had initially said that the company would pay attention to lowering costs and meeting the growing demand. The company initially said that the discounts imposed in January were already having an impact, given the increase in the number of orders.
In the US, Tesla has slashed the prices of the base Model 3 by a total of 11% since the beginning of the year. The company has also slashed its base Model Y prices by 20%. The EV maker, like most companies, is expected to post its Q1 financial results next week.
