(Reuters) – Tesla Inc has slashed prices of its electric vehicles in the United States and Europe, doubling down on a discount drive it started in Asia as demand slows against the backdrop of a weakening economy.
The Elon Musk-led company missed its target in 2022 to grow deliveries by 50% annually and reported that sales of its China-made cars hit a five-month low in December, underlining the hit from rising interest rates and growing recession fears.
Following are details of the price cuts:
Tesla slashed prices for all versions of its Model 3 and Model Y cars in China by between 6.0% and 13.5%, according to Reuters calculations based on the prices shown on its website.
The starting price for Model 3, for instance, was cut to 229,900 yuan ($33,427) from 265,900 yuan.
The latest cut in China, along with a price cut in October and incentives extended to Chinese buyers over the past three months, mean a 13% to 24% reduction in Tesla’s prices from September in its second-largest market after the United States, according to Reuters calculations.
Tesla cut the prices of Model 3 and Model Y cars by about 10% each in the country, the first time it had done so since 2021. The price for the Model 3 rear-wheel drive version is now 5.369 mln yen ($40,091), down from 5.964 mln yen.
Tesla’s price cuts in the country differed from model to model, but ranged from about 6 mln won to 10 mln won ($4,725 to $7,875), a local Tesla sales official said.
The price of Tesla’s basic Model 3 rear-wheel drive vehicle was listed as 64.34 mln won ($50,637) on the company’s website on Friday. Its Model Y Long Range sports utility vehicle was 84.999 mln won.
Tesla’s U.S. price cuts on its global top-sellers the Model 3 sedan and Model Y crossover SUV, were between 6% and 20%, Reuters calculations showed.
The basic version of its Model Y now costs $52,990, down from $65,990 previously. The company also cut prices for its Model X luxury crossover SUV and Model S sedan in the United States.
Tesla cut prices on the Model 3 and the Model Y by about 1% to almost 17% depending on the configuration.
Customers buying the Model 3 for 44,990 euros ($48,638.69) will now get a further price reduction through a government subsidy of 5,000 euros. The upper limit for the EV scheme is 47,000 euros.
($1 = 6.8775 Chinese yuan)
($1 = 133.9200 yen)
($1 = 0.9250 euros) (This story has been refiled to change picture)
(Compiled by Anne Marie Roantree, Tiyashi Datta and Akash Sriram; Editing by Kim Coghill and Shounak Dasgupta)