Tesla has cut prices on its two most popular electric cars in the United States and Europe by as much as 20 percent in a bid to spur slackening demand.
The move comes as Tesla faces increasingly stiff competition in the global market for electric vehicles.
Tesla recently lowered prices in China and reported a global sales total for 2022 that was below analysts’ expectations. After the latest price cuts were reported, Tesla stock was down about 5 percent in early trading on Friday. The share price has fallen by roughly 70 percent since November 2021.
The latest price cut on Tesla vehicles appeared on the company’s website late Thursday. The automaker now shows a high-end Model 3 Performance compact selling in the United States for just under $54,000, down from $63,000, a cut of 14 percent.
The most affordable version of the Model 3 now sells for just under $44,000, a reduction of about $4,000.
For some of the lower-priced models, the cuts put them in range to qualify for federal tax credits of $7,500 that were made available starting Jan. 1 under the Inflation Reduction Act. The credit is available on electric cars priced under $55,000.
Tesla sold 1.3 million cars in 2022, a 40 percent increase from the year before, but short of the 50 percent annual growth target the automaker had set for itself. In recent months, rising borrowing rates made its electric cars more expensive for people taking out loans.
Tesla’s fourth-quarter production of 440,000 cars was 34,000 more than the company delivered, suggesting that the sluggishness went beyond supply chain problems and production issues.