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Tesla Slashes Prices of Top EV Models

Business

Tesla Logo | Image by Marko Aliaksandr/Shutterstock

Tesla has cut the prices of its electric vehicles sold in the United States by as much as 20%.

Some have concluded that the price reductions are meant to encourage buyers to purchase amid market fears that demand for new cars is dwindling, according to Fox Business.

In addition to the price cuts, some buyers will be eligible to receive a $7,500 tax credit from the U.S. government.

This is because the 20% cut for the popular Model Y lowers the price to $52,990, putting it below the threshold for a tax credit, which is capped at $55,000.

Another popular car, the Model 3, received a 14% cut to $53,990, also putting it under the cap for a tax incentive.

Tesla delivered roughly 1.31 million units last year. That marked a 40% increase from 2021, but this was less than the expected 50% minimum.

Meanwhile, stock market shares plummeted by nearly 65% in 2022.

This move comes as Tesla has also slashed prices in China following a dip in sales numbers in late December.

Elon Musk, CEO and primary owner of Tesla, has previously stated that high-interest rates are affecting demand for vehicles.

Some Tesla owners were less than happy with some of the price slashing on the electric vehicles.

“I feel like I got duped. I feel like I got taken advantage of as a consumer,” Marianne Simmons, 32, who considered herself a Tesla fan, said to Fortune.

“Right off the bat, I’m out $13,306. It’s such a large reduction that it’s going to affect a lot of people who just bought a vehicle.”

Much of the reported dismay was a result of the decrease in the resale value of the cars.

“For any existing owner, it’s a kick to the teeth,” Ivan Drury, director of insights for Edmunds.com, told Fortune. “Anyone who bought a Tesla recently will feel an immediate impact [and] wish they leased it.”

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