Tesla cuts prices in U.S., Germany in pivot to drive sales
$Tesla (TSLA.US)$ has cut prices on its top-selling electric vehicles in the United States and Germany, the automaker's website showed, extending a new strategy of aggressive discounting after missing Wall Street estimates for fourth quarter deliveries.
The U.S. price cuts, announced late Thursday in U.S. time on the Model 3 and Model Y, ranged between 6% and 20% compared with the prices that held before the discount, according to a Reuters calculation.
In Germany, Tesla cut prices on the Model 3 sedan and the Model Y crossover - its global top-seller - by between about 1% and amost 17% depending on the configuration.
For a U.S. buyer of the long-range Model Y, the new Tesla price combined with the U.S. subsidy that took effect this month amounts to a discount of 31%.
Tesla has also cut prices in South Korea, Japan, Australia and Singapore.
Tesla missed Wall Street estimates for fourth quarter deliveries.
Last month, Tesla CEO Elon Musk said "radical interest rate changes" had changed the industry-wide outlook and that Tesla could lower pricing to sustain volume growth, which would result in lower profit.
Tesla cuts price to promote, will next quarter's earnings report satisfy investors?
In Germany, Tesla cut prices on the Model 3 sedan and the Model Y crossover - its global top-seller - by between about 1% and amost 17% depending on the configuration.
For a U.S. buyer of the long-range Model Y, the new Tesla price combined with the U.S. subsidy that took effect this month amounts to a discount of 31%.
Tesla has also cut prices in South Korea, Japan, Australia and Singapore.
Tesla missed Wall Street estimates for fourth quarter deliveries.
Last month, Tesla CEO Elon Musk said "radical interest rate changes" had changed the industry-wide outlook and that Tesla could lower pricing to sustain volume growth, which would result in lower profit.
Tesla cuts price to promote, will next quarter's earnings report satisfy investors?
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