Tesla has cut the prices of its electric cars again – as it tries to boost sales and compete with rival firms. The cuts – worth several thousand pounds depending on the market and model – have been applied to cars listed for sale on the company’s website in the UK, US, and elsewhere.
They follow larger markdowns of up to 20% that the firm introduced in January. Tesla is facing challenges as higher borrowing costs weigh on buyers and rivals offer more electric options.
The company did not respond to a request for comment. Last year, the firm did not meet its 2022 target of increasing its deliveries by 50% annually, a shortfall the firm blamed on a lack of supply tension and a weak economy.
But boss Elon Musk previously said the price cut was serving to spur demand. Mr. Musk said during a presentation to investors last week “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,”.
Mr. Musk warned in January that he expected a “pretty tough recession” to hurt demand this year, which could lead to contractions for the wider industry. Mr. Musk said he expected Tesla sales to continue growing, pointing to the firm’s focus on price.
According to Reuters, the latest round of cuts marks Tesla’s fifth change in prices since the beginning of the year, when its markdowns rocked the electric car market, prompting some other firms to slash prices in response.
Tesla later raised some prices for some models in some countries, but the cost remained lower than before. In the US, the latest rebates range from 4% to 9% and apply to the firm’s more expensive vehicles, the Model S, its sports car, and the Model X, a mid-size sports utility vehicle.
Tesla’s leadership in the electric car market has also been challenged by growing competition from traditional motor manufacturing giants such as Ford and General Motors, as well as new entrants such as Rivian and Lucid in the US and China’s BYD and NIO.
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Information Source: BBC