News Desk
ISLAMABAD/TEXAS: American automaker, Tesla Inc (TSLA.O), has slashed prices of its electric vehicles by as much as 20 per cent.
Tesla move comes after target missed
The American multinational automotive and clean energy company aims to extend an aggressive discounting effort and challenge rivals after Tesla missed Wall Street delivery estimates for 2022.
The company’s move marks a reversal from the automaker’s previous strategy when new vehicle orders exceeded the supply limit.
The announcement comes after Tesla CEO Elon Musk warned that the prospect of recession and higher interest rates meant it could lower prices to sustain growth at the cost of profit.
Last year, Musk acknowledged that prices had become “embarrassingly high” and could hurt demand.
Tesla’s shares ended down 0.9 per cent after falling as much as 6.4 per cent on Friday. Last year, Tesla stock had its worst year since the company’s inception due to slowing growth in China and Musk’s distraction with Twitter.
Tesla lowered prices across the US, Europe, Africal and the Middle East following a series of cuts last week in Asia, in a clear shot at both smaller rivals that have been bleeding cash and legacy automakers aggressively ramping up electric vehicle production.
Chairman and managing member at Great Hill Capital Thomas Hayes said that competition was coming and Tesla responded with price cuts.
The discounts may make electric vehicle cars affordable to people who were previously priced out of the market. US and French consumers could take advantage of both the discounts and federal tax credits available for certain electric vehicle purchases in both countries.
