Tesla Is Reducing Prices on Models Sold In The U.S.: 'Eye-Popping'On the Model Y crossover, for example, the baseline price has been slashed by nearly 20%.
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For those who wish to purchase Tesla, now might be the time.
According toThe Wall Street Journal, the electric car company cut prices of several models sold in the U.S. by percentages including 14% off the Model 3 sedan and nearly 20% off its baseline Model Y crossover.
The company's share price dropped over 3% on the news on Friday, the outlet added.
Tesla has also had a rough year. It has faced a 65% drop in share price since January 2022, a record-breaking low for the company. Demandslowed down, and many, including investors and analysts, felt that CEO Elon Musk should not be spending so much time and money on Twitter and insteadfocus on Tesla.
Related:Tesla Investors Complain That Elon Musk Is Spending Too Much Time on Twitter — On Twitter
“在减少当前的价格模型,Tesla is indicating that it is willing to concede some profit in order to increase sales volume,"The New York Timeswrote.
Some of the cuts, depending on how many add-ons Tesla customers include with their purchases, make it possible for customers to qualify for a tax credit as per Inflation Reduction Act, the WSJ noted.
The credit gives buyers $7,500 for electric car purchases under $55,000.
Similar price cuts were done in Europe as well. Prices were also cut forTeslas sold in China.
Daniel Ives, an analyst at Wedbush Securities who follows the company, said it is "no secret that demand for Tesla is starting to see some cracks in this global slowdown," in a text to狗万官方.
He called the cuts "eye-popping," because of the amount.
"While the initial reaction to these cuts will naturally be negative on the [Wall Street] at first, we believe this was the right strategic poker move by Musk & Co. at the right time," Ives added.
