Demand for its EVs has slowed.
Price cuts of up to 20% in the US, Canada, and Europe.
Constant price fluctuations make it difficult to keep tabs on some numbers.
The adage that says that what goes up must come down seems appropriate here. Throughout most of 2021 and 2022, Tesla prices repeatedly shot up to a point where even Elon Musk stated that they’d become embarrassingly high. Now, they’ve come down.
Last week, Tesla dropped pricing in Asia and now, it’s Europe’s and North America’s turn. The main reasons behind the rollback are the prospect of recession and higher interest rates. Lower prices should sustain growth however at the expense of profit.
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According to Reuters, the price cuts vary from 6% up to 20% for the automaker’s top-selling Model 3 and Model Y. For example, the base Model Y is now priced at $52,990, down from $65,990.
In Canada, it’s much the same. For example, the Performance version of the Model Y retailed for up to $89,990. The new price is an almost reasonable $74,990, a difference of $15,000, or a roughly 13% drop. The Model 3 Performance is now $9,000 cheaper at $72,990.
In many areas, the base Tesla vehicles are now eligible for various incentives which should help keep interest in the EVs high. Despite this, investors are not quite happy with the move as Tesla shares fell by 4.5% in pre-market U.S. trade.
