February 24, 2024

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Elon Musk’s Tesla is cutting prices again in an effort to boost sales

Elon Musk’s Tesla is cutting prices again in an effort to boost sales

  • Written by Natalie Sherman
  • Business Reporter, New York

image source, Getty Images

photo caption,

Tesla has repeatedly adjusted prices since the beginning of the year

Tesla has slashed the prices of its electric cars – yet again – as it tries to boost sales and compete with rivals.

The cuts – worth several thousand pounds, depending on market and model – have been listed for sale on the company’s website in the UK, US and elsewhere in recent days.

They’re following a massive 20% discount the company introduced in January.

Tesla faces challenges as higher borrowing costs affect buyers and competitors offer more electric options.

The company did not respond to a request for comment. Last year, the company missed its 2022 goal of increasing deliveries by 50% annually, a shortfall it blamed on supply-straining constraints and a weak economy.

But his boss, Elon Musk, has previously said that price cuts are boosting demand.

“People’s desire to own a Tesla is very high,” Musk said last week during an investor presentation. “The limiting factor is their ability to pay for a Tesla.”

Musk warned in January that he expected a “very hard recession” to hurt demand this year, leading to a contraction in the broader industry.

Musk said he expects Tesla sales to continue to grow, citing the company’s focus on price.

Tesla later raised some prices for some models in some countries, but the costs remained lower than they were.

In the US, the latest discounts range from 4% to 9% and apply to the company’s most expensive cars, the Model S, its sport utility vehicle, and the Model X, its midsize SUV.

In Europe and the UK, the discounts listed on the website apply to the Model 3 sedan and the Model Y. In the UK, for example, the cost of Model 3 versions drops around 6% to £56,540 from £60,090.

Tesla’s leadership in the electric vehicle market has also been challenged by increasing competition from traditional motor giants such as Ford and General Motors, as well as new market entrants such as Rivian and Lucid in the US and China BYD and Nio.