Tesla cuts prices

Tesla cuts prices

Tesla Model X

  • Flagship Model S now starts at $84,990 after $5,000 cut
  • Company trimmed $1,000 to $5,000 off its full lineup

Tesla Inc. slashed its Model S and X prices in the US for the third time this year in an effort to shore up flagging demand for its iconic electric vehicles.

Chief Executive Officer Elon Musk has vowed to chase volume over profit margins. The flagship Model S sedan now starts at $84,990, a $5,000 cut from the price last month. The Model X starts at $94,990, also a $5,000 drop.

Tesla delivered 422,875 vehicles globally in the first quarter, but just 10,695 of those were the S and X.

More Cuts

Tesla trimmed the price of Model 3 sedans and Model Y sports utility vehicles by $1,000 and $2,000, and lowered the starting prices of two models to $41,990 and $49,900, according to its website. It also added a new version of the entry-level Model Y.

The US automaker, which cut prices in China earlier this year, has also triggered a price war in the world’s largest new-energy vehicle market. It shipped a total of 88,869 vehicles from the Shanghai factory in March, according to preliminary data released Tuesday by China’s Passenger Car Association.

A significant price disparity remains for the vehicles made in China, where a basic Model 3 starts at 229,900 yuan ($33,400) and a Model Y runs 261,900 yuan ($38,086).

While Tesla continues to outpace other automakers in global EV sales, it’s facing stiffer competition than ever before from China’s BYD Co., with analysts at BloombergNEF expecting the Berkshire Hathaway Inc.-backed manufacturer will challenge for the No. 1 spot this year.

Tesla will also need to pick up the pace to keep growing at the rates investors are used to. Last year, the company fell short of its target for a 50% average annual increase in vehicle deliveries, expanding instead by 40%. Its growth rate slipped to 36% in the first quarter.

Tesla will report earnings on April 19.

News source

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest