Tesla: Prices for electric cars in Europe and the USA reduced by up to 20 percent

Tesla has slashed prices for its electric vehicles by up to 20 percent in the United States and Europe after a long price hike by the company, reports Reuters.com. The price reduction is said to be a reaction to missed delivery figures for 2022, with which the manufacturer recently disappointed Wall Street.

Meanwhile, more stable cost inflation was also a factor behind the price cut, a spokesman for Tesla Germany said, according to the report, confirming the price cuts in its key European market. The move caused Tesla shares to fall 4.5 percent in premarket US trading.

Tesla in Germany up to 17 percent cheaper

U.S. price cuts announced late Thursday for the “world’s top-selling” Model 3 sedan and Model Y crossover SUV were between 6 percent and 20 percent, according to Reuters calculations. For example, the base version of the Model Y now costs $52,990, up from $65,990. With a tax credit of up to US$7,500 for many electric vehicle models, savings of up to 31 percent can be achieved here. Tesla, meanwhile, also lowered prices for the Model X luxury SUV and Model S sedan in the United States.

In Germany, the prices for the Model 3 and Model Y were reduced by around 1 to almost 17 percent, depending on the configuration, and thus by up to 6,000 euros and up to 9,100 euros respectively, depending on reports elektroauto-news.net. There were also price reductions in Austria, Switzerland and France. In order to boost sales, Tesla had already reduced prices in China, South Korea, Japan, Singapore and Australia last week and in October.