Tesla cuts prices on electric vehicles for US market

Tesla lowered the price of hot-selling items Electric car As for the U.S. market, the automaker’s website showed after it recently cut prices in China and missed Wall Street estimates for fourth-quarter deliveries.

The price reduction announced in US time is model 3 When Model YReuters calculations ranged from 6% to 20% compared to the undiscounted price.

That’s before taking into account the $7,500 federal tax credit that was applied to many electric vehicle models in early January.

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Combined with the price cuts announced in China last week, the move marks a departure from a strategy pursued throughout much of 2022, Tesla’s biggest market, when demand was strong and average selling prices for electric vehicles trended higher. showed a reversal.

The shift is Tesla’s first major move since appointing an executive in charge of China. Asia, Tom Chuoversees global production and sales after falling short of its 2022 delivery target.

Tesla cut prices in China and other Asian markets last week. In addition to previous price cuts announced in October and recent incentives, prices in China for a Model 3 or Model Y have fallen by 13% since September after recent moves, according to Reuters calculations. It fell 24%.

Tesla also cut prices in South Korea, Japan, Australia and Singapore.

Analysts said China’s price cuts would boost demand and deepen pressure on competitors, including BYD, in what could become a price war in the single market for the world’s largest electric vehicle.

Tesla’s main market is the United States and its second largest market is China.

Tesla underperformed Wall Street estimates for fourth-quarter deliveries.

Last month, Tesla CEO Elon Musk “Rapid changes in interest rates” have changed the outlook for the entire industry, and Tesla may cut prices to keep sales volume up, which will lead to lower profits, he said.

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