Tesla has cut the prices of two of its most popular electric cars by up to 20 percent in the US and Europe.
The move comes as Tesla faces increasingly tough competition in the global market for electric vehicles.
Tesla recently cut prices in China and a statement Total Global Sales to 2022 This was lower than analysts’ expectations. Tesla shares fell about 5 percent in early trading Friday after the latest price cuts were announced. Since November 2021, the share price has fallen by around 70 percent.
The latest price cut for Tesla vehicles appeared on the company’s website late Thursday. The automaker now sees the top-of-the-line Model 3 Performance Compact selling in the U.S. for $54,000, down 14 percent from $63,000.
The most expensive version of the Model 3 now sells for less than $44,000, a reduction of about $4,000.
For some low-cost models, the cuts are set to qualify for the $7,500 federal tax credits available starting Jan. 1 under the Inflationary Reduction Act. The credit is available for electric cars priced under $55,000.
Tesla was sold 1.3 million cars by 2022, a 40 percent increase over the previous year, but less than the 50 percent annual growth target the automaker had set for itself. In recent months, borrowing rates have risen, making its electric cars more expensive for borrowers.
Tesla’s fourth-quarter production of 440,000 cars was 34,000 more than the company delivered, suggesting the slowdown went beyond supply chain issues and manufacturing issues.