Tesla Discounts EV Lineup in US, Europe in Bid To Boost Demand
Tesla has seemingly fired the first shot in the looming price war of the modern electric vehicle (EV) market, discounting some of its best-selling models by up to 20%.
The American automaker has reportedly slashed prices across its lineup in the U.S. and Europe in a bid to boost consumer demand, according to Engadget. The Model 3 RWD, for instance, is now priced at US$43,990 from US$46,990 before. Meanwhile, the Model Y Long Range is now priced at US$52,990 from US$65,990 – a 20% drop. Other models like the Model S and Model X – both regular and plaid versions – along with the performance versions of the Model 3 and Model Y were also discounted.
Only the Model Y with seven seats saw a price hike, with it now being sold between US$1,000 to US$4,000 more than before.
The discounts come amid reports of Tesla battling inventory build-up in the U.S. and in China, with demand for its vehicles cooling down – a stark reversal of when, just a few years ago, the automaker's orders exceeded its supply. Some analysts also believe that Tesla is getting ahead of its competitors as legacy automakers ramp up the production of EVs. "Competition is coming and they are responding with price cuts," Thomas Hayes, Chairman at Great Hill Capital, told Reuters.
Tesla also cut the prices of its EVs in China – twice in the last six months – angering buyers who missed out on the discounts. Hundreds of upset Tesla owners staged demonstrations at the automaker's showrooms and delivery centres across major cities like Shanghai and Beijing, demanding compensation. Tesla said it had no plans of compensating the disgruntled owners. After the most recent mark-downs in January, prices in China are now up to 24% below what they were in September.
To avoid a similar backlash in other markets, Tesla said those who have ordered but have yet to receive their vehicle would be charged the new lower price.
Tesla has slashed prices across its lineup in the U.S. and Europe in a bid to boost consumer demand.
The Model 3 RWD, for instance, is now priced at US$43,990 from US$46,990 before.
The discounts come amid reports of Tesla battling inventory build-up in the U.S. and in China, with demand for its vehicles cooling down.