Tesla makes its sixth US price cut this year

American electric car maker Tesla has cut prices on two electric vehicle models in the US for the sixth time this year, despite concerns about their impact on profit margins.

According to price lists on the company’s website, Tesla discounted Model Y prices by $3,000 and Model 3 prices by $2,000 in its largest market, the US.

The price of Model Y long-range vehicles has been reduced to $49,990, while the price of Model Y “performance” vehicles has been reduced to $53,990.

Model 3 reduced the prices of its “rear-wheel drive” vehicles to $39,990.

In the US, consumers can take advantage of clean vehicle tax deductions of up to $7,500 on new electric vehicle purchases.

Tesla, one of the most profitable automakers, had cut prices in the US to boost sales in January, March and April. Thus, compared to the beginning of 2023, the price of the Model 3 decreased by 11 percent and the price of the Model Y by 20 percent.

Tesla sparked a price-cutting run earlier this year in China, the world’s biggest electric vehicle market.

ELON MUSK RECORD THAT HAS INFLUENCE ON LAWSUIT

Tesla CEO Elon Musk said on Investor Day March 1 that even small price changes have a big impact on demand.

Tesla had expanded its global discount campaign, which it launched in China in January, by again lowering the prices of its electric vehicles in Europe and Asia. The company discounted the prices of Model 3 and Model Y vehicles in Germany from 4.5 percent to 9.8 percent.

Headquartered in the US, Tesla delivered 422,875 vehicles worldwide in the first quarter. Despite a 40 percent increase last year due to logistics problems and slowing demand in vehicle deliveries, the company’s sales fell short of the 50 percent increase target.

RESULTS FOR THE FIRST QUARTER WILL BE ANNOUNCED TODAY

Tesla will announce the results of the first quarter of this year today.

Analysts expect Tesla’s first-quarter revenue to hit $23.29 billion, up 24.2 percent from the same quarter last year.

On the other hand, the famous auto expert from Germany Prof. Dr. Ferdinand Dudenhöffer, in his assessment on the subject, said: “Tesla is accelerating the price war. Because Tesla can afford to complicate the work of other car manufacturers with good prices, ”he said. (AA)