Tesla has announced a significant price cut on its top-selling electric vehicles (EVs) in the United States and Germany, in an attempt to boost sales after missing Wall Street estimates for fourth quarter deliveries.
According to the automaker’s website, the U.S. price cuts go all the way to 20% compared to the previous prices.
It is worth noting that the price cuts announced by Tesla do not take into account the $7,500 federal tax credit that recently came into effect for many electric vehicle models in January.
Taking this into account, it is possible that the Model Y ordered today could be more than 30% cheaper than one ordered yesterday, as long as delivery is taken before mid-March, when the tax credit is expected to decrease to $3,750.
In Germany, Tesla has also cut prices by up to 17% depending on the configuration.
Tesla has also cut prices in China, South Korea, Japan, Australia, and Singapore.
In December, Tesla CEO Elon Musk stated that the recent changes in interest rates have affected the overall affordability of vehicles, both new and used, and as a result, the company might implement price reductions in order to maintain growth in sales volume.
Model Y -20%
Model Y Performance -19%
Model 3 Performance -14%
Model X Plaid -14%
Model S Plaid -15%
Model X -9%
Model S -10%
Model 3 -6%