Tesla Cuts Prices As Demand Wanes: How Does This Affect The Automaker’s Future?

Tesla has lowered the prices of several of its vehicles in many countries as a result of falling short on deliveries.

Discounts on many Tesla models will be offered in the United States and the European Union.

Tesla has opted to reconsider its strategy after failing to meet Wall Street’s projections for the number of vehicles it will produce in 2022 owing to a combination of decreasing demand and intractable supply chain challenges. In preparation for 2022, the company has lowered the cost of some of its most popular products.

There has been a price drop of 20%, from $65,990 to $52,990, on the Model Y Long Range offered in the United States. There is now a $7,500 US federal tax credit available for this SUV, cutting its price by over $20,000, or 30%.

We’re especially happy about the price drop for the Model 3, Tesla’s best-selling vehicle. According to Engadget, the base price of the Model 3 with rear-wheel drive has dropped from $46,990 to $43,990.

The biggest price cut was for the Model Y Performance, which went from £79,990 in the UK to £59,990. When compared to yesterday’s asking price, today’s is £8,000 higher. AutoCar reports that the base price of a Tesla SUV, the Model Y, has reduced to £44,990 from £55,000.

A Reuters article from Europe stated, “customers purchasing the Model 3 for 44,990 euros ($48,773) will now enjoy a further price cut through a government subsidy of 5,000 euros.” To top it all off, “prices for the Model 3 and Model Y were cut by around 1% to almost 17% in Germany, depending on configuration.” Customers who have recently placed an order for a Tesla but have not yet received their vehicle will be subject to the extra, the company has admitted. Although this is excellent news for individuals in the market for a pre-owned vehicle, it does little to comfort those who have just taken delivery of a brand new vehicle only to watch its value rapidly decline.