Elon Musk’s Tesla cuts prices again as it tries to boost sales

  • By Natalie Sherman
  • Business Correspondent, New York

image source, Good pictures

image caption,

Tesla has adjusted prices repeatedly since the beginning of the year

Tesla has slashed prices for its electric cars — again — as it tries to boost sales and compete with rivals.

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

They follow big markdowns of up to 20% that the company introduced in January.

Tesla faces challenges as higher borrowing costs weigh on buyers and rivals offer more electric options.

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

But boss Elon Musk has previously said the price cuts are working to boost demand.

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

Mr Musk warned in January that a “pretty tough recession” would hit demand this year, leading to a contraction in the wider industry.

Mr Musk said he expects Tesla sales to continue to grow, given the company’s focus on pricing.

Tesla has raised some prices for some models in some countries, but the costs are less than those.

In the U.S., the latest discounts range from 4% to 9% and apply to the company’s priciest vehicles, the Model S, its sports car, and the Model X, a midsize sport utility vehicle.

In Europe and the UK, the trims listed on the website apply to the Model 3 Sedan and Model Y. For example, the Model 3 versions are priced around 6% down from £60,090 to £56,540.

Tesla’s lead in the electric car market has been challenged by increased competition from traditional automakers such as Ford and General Motors, as well as new entrants such as Rivian and Lucid in the US and BYD and Neo in China.

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