Tesla is coming under increasing pressure from other EV manufacturers, as the industry hots up and more traditional car manufacturers are also releasing various electric models to take advantage of the burgeoning market. Can Tesla remain the market leader? Well, Tesla has revealed steep price cuts to all its vehicles as it fights to remain the EV market leader.
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Having only recently increases the prices of all its offerings, it’s a massive shift in policy from the company. Tesla has still been increasing its vehicle shipments every quarter, but there are definite questions about the long-term stability of the company as others start to impede on its turf. Demand in China and the US is especially worrying, since these markets now offer potential EV buyers to most options, many of which are much more competitively priced than the Tesla equivalent.
With the price cuts, the company hopes to invigorate the demand in these pivotal markets. Some models will cost up to 30 percent less, with new government incentives in the US included. For example, the Model 3 Performance drops from $63,000 to $54,000 before any tax credits, while the Model Y Performance has gone down from nearly $70,000 to about $57,000, also before the tax credits.
“Tesla’s latest price cuts reflect a major shift in the EV market,” said Jessica Caldwell, the executive director of insights at the car-buying website Edmunds. “In 2023 a wave of new EV options will enter the market, but given that production will be limited for most manufacturers, Tesla is positioning itself to scoop up consumers unwilling to wait or who may be on the fence about EV technology by enticing them with one thing all buyers respond to — a deal.”
“The changes to take note of especially are for the Model Y, with some configurations seeing their MSRPs dropped by as much as $13,000, truly a staggering discount that’s rare to see happen in this industry,” said Robby DeGraff, an analyst with the automotive research firm AutoPacific. “Additionally, these more accessible prices mean that certain configurations of the Model 3 and Model Y, routinely two of the country’s hot top-selling EVs, should now be eligible for further discounts of up to $7,500 thanks to the revised federal EV tax credits.”
