Tesla Model Y price cut | Image:Tesla Model Y
Tesla Model Y price cut: In a strategic move aimed at boosting sales, Tesla has announced that it will temporarily reduce the prices of some models of its popular Model Y vehicles in the United States. The price adjustment will be in effect until February 29 and comes just after the electric car giant lowered the price of its Model Y vehicles in Germany.
This adjustment results in a $1,000 price reduction for the Model Y Rear-Wheel Drive and Model Y Long Range, bringing prices to $42,990 and $47,990, respectively. This represents a discount of 2.3 percent and 2 percent from the previous price. Notably, prices for the Model Y Performance Variant and other models remain unchanged, as shown on Tesla’s website.
According to a notice posted on Tesla’s website, the reduced prices for selected models will apply to deliveries through the end of February. Starting March 1st, the price will increase by more than $1,000.
The move follows Tesla’s recent price adjustments in Germany, triggered by the suspension of car production at its Berlin factory due to parts shortages following transportation disruptions caused by the Red Sea attacks.
Tesla in January warned that sales growth would be “significantly lower” this year as the company shifts focus to producing its next-generation electric vehicle, known internally as Redwood. These price cuts are expected to further impact Tesla’s profits, which have already been squeezed by a long-running price war that began more than a year ago.
Tesla’s price cut decision comes as a result of weak demand and increased competition, especially from the rise of affordable electric vehicles, including those made by China’s BYD, which overtook Tesla as the world’s leading EV maker in the final quarter of 2023. It was done in anticipation.
In another sign that demand for EVs may cool, rental giant Hertz Global Holdings Inc. sold about 20,000 electric vehicles, including Teslas, from its U.S. fleet in January, resulting in fewer crashes and accidents. Citing rising costs, the company announced its decision to opt for gasoline-powered vehicles instead. EV damage.
Tesla stock has fallen 22.1% since the beginning of the year, reflecting investor concerns amid evolving market dynamics and competitive pressures in the electric vehicle space.
(Based on information from Reuters.)