Tesla Model S, Y, 3 get CHEAPER in US, Europe as sales take a hit, affecting growth

As sales dip, US-based electric car maker - Tesla, has now reduced prices of a host of its models in the US and European markets.

Tesla has rolled out a reduction in prices for its line-up of electric vehicles, sold across the US and Europe. The electric car maker has taken this step to boost sales. The most affordable model of the brand - Model 3 RWD now costs USD 43,990, which was earlier priced at USD 46,990. Also, the 5-seat Model Y Long Range’s price is lowered by 20 per cent, totalling to US 52,990. In fact, a US Federal Tax Credit of USD 7,500 can be claimed on the Tesla Model Y Long Range, bringing down a total reduction of USD 20,500. Price reductions were made to other models too, including the performance versions of the Model 3 and Model Y, and the regular and plaid versions of the Model S and Model X. However, the Model Y`s 7-seat option has increased in price by $1,000 to $4,000.

In Germany, Model 3 and Model Y prices were decreased by one to 17 per cent and also dropped in Austria, Switzerland and France. Customers must place their orders before mid-March, when it is expected that the rebate would be reduced to half, in order to receive the full $7,500. SUVs priced below $80,000 and cars priced under $55,000 are eligible for tax rebates, the report said.

Meanwhile, the electric car-maker has missed its target of 50 per cent growth in production and deliveries for 2022, as its stock plummeted around 65 per cent amid Musk`s $44 billion Twitter takeover last year. The automaker needed to sell 495,760 vehicles in its fourth quarter (Q4) to have achieved the 50 per cent growth guidance.

In the fourth quarter, Tesla produced over 439,000 vehicles and delivered over 405,000 vehicles. Investors fear that China`s Covid situation and supply chain-related challenges will further impact Tesla sales. They are also concerned about Musk`s distraction by his Twitter overhaul.

The Tesla CEO recently became the first person ever to lose $200 billion from his net worth. Tesla last month announced a price drop on several of its models, offering a $7,500 discount for its Model 3 and Model Y vehicles, in a bid to sell more vehicles.

With inputs from IANS