Tesla Is Cutting Down Car Prices To Rev Up Demand

Tesla has been riding high on the electric vehicle wave over the last few years. However, with a recession incoming and its CEO distracted with Twitter, the automaker has hit a wall, and it’s looking for new ways to amp up its profits.
 
One way it’s buying interest is by slashing its car prices by 20%. This might be a surprising move to some, but the company’s shares have dipped by 70% in 2022 and were further affected after Tesla missed its annual production goal by 20%.
 
The price reduction now places its Model 3 Rear Wheel Drive (RWD) as the cheapest in the lineup, coming in at US$43,990. The Model 3 Performance has also been reduced by US$9,000 to US$53,000. The Model Y Long Range and Model Y Performance are down US$13,000 to US$52,990 and US$56,990, respectively.

Those looking for the larger Model S will find that it has dipped to US$104,990 while the Model S Plaid now retails for US$114,990. Tesla’s SUV Model X is now going for US$109,990, whereas its Plaid version will cost US$119,990.

Areas affected by the slashed rates include markets in the US, Europe, Africa, Asia, and the Middle East.
 
Incidentally, the price cut now opens up the Tesla cars for the revised clean vehicle tax credits introduced under the Biden administration.
 
In a report from Reuters, Elon Musk said last year that the prices of the cars had inflated “embarrassingly high” and could affect demand for the vehicles. Whether the high cost solely led to the dip in stocks or if the business with Twitter has since swayed some fans away from the company is still up for debate. 

 
In other Tesla news, the company is now offering customers the chance to opt for a traditional steering wheel in place of its yoke steering.
 
 
 
[via Ars Technica and Reuters, Photo 189371396 © Melpomenem | Dreamstime.com]