Tesla is cutting prices throughout Europe and in the US.
The American multinational automotive and clean energy company , announced on Friday that it will cut the price of its best-selling electric vehicle models up to 20 per cent in Europe and the United States, launching a price war as more rivals hit the market.
Analyst Dan Ives , Wedbush Securities, commenting on the price cut, said,
“It’s no secret that demand for Tesla is starting to see some cracks in this global slowdown for 2023.
The price cut was the right move and a clear shot across the bow at European automakers and US stalwarts (GM and Ford) that Tesla is not going to play nice in the sandbox”.
Prices for a Model Y rear wheel drive have dropped by 17 percent in Germany, with cuts of 20 percent for the Model Y long range in the US. Tesla has also cut prices for its Model X and Model S in the US.
Shares in the Elon Musk-led company have plummeted for more than a year and fell as much as 4.5 per cent in early trading on Friday, before recovering some lost ground.
“At the end of a turbulent year with interruptions to the supply chain, we have achieved a partial normalization of cost inflation, which gives us the confidence to pass this relief onto our customers,” A Germany Tesla spokesperson said in a statement.