Tesla has cut the prices of some of its most popular electric cars by thousands of pounds in Europe and the United States to stimulate consumer demand.
The company tesla is facing a challenging global economic environment and increasing competition from other automakers.
Tesla price cuts range from 10% to 13% in the UK but reach 20% on some US models.
New UK buyers save £5,500 on the base Model 3 and £7,000 on the more affordable Model Y.
However, more than 16,000 customers bought these best-selling the model s tesla last year, and some were upset that they were paying more.
One wrote on a Facebook group for Tesla owners: “I picked up the car yesterday. What do I do? Go to Tesla and return the car now? I can’t believe I’ve lost £ in hours of getting a car. 5k.”
Tesla received a similar reaction from consumers in China, where it announced tesla share price cuts last week.
Angry owners rallied outside Tesla distribution centers in Shanghai and other cities over the weekend to demand compensation.
Tesla has cut prices in China twice in the past six months, and they are now 13-24 low September levels.
It does not feel good
In a bid to avoid similar objections in the US and Europe, Tesla said to customers who had ordered their tesla cars but had not yet received them would receive their electric cars tesla at the new lower tesla price.
Ginny Buckley of EV marketplace Electrifying.com said the tesla share price cuts are still controversial and are sure to send “shockwaves” through the industry as Tesla moves from premium to mainstream products.
Paul Holick, President of the Association of Fleet Professionals, welcomed the tesla price cut and said it would make EVs more affordable for its members. However, he said that “random marketing” is not good tesla news.
“This kind of movement inevitably creates confusion,” he said.
The electric car maker has grown rapidly in the recent years, evolving from a niche premium brand to mass-market manufacturers.
But there are challenges.
Slow global growth and high interest rates, not to mention increased competition from more established automakers and Chinese brands, threaten its expansion.
When demand for tesla car news outstrips supply, it could keep prices at what Elon Musk himself called “obscene.”
But in a world where more and more electric car brands are competing for a shrinking pool of potential buyers, it can’t afford it if it wants to keep growing.
James Baggott, editor-in-chief of Car Dealer magazine, said the move would have a big impact on Tesla’s used prices, which he said had already fallen by more than a fifth in the past year.
The cheapest new model tesla 3 in the UK is now £42,990. Y model cars tesla start from £44,990.
Demand for electric vehicles continues to grow, fueled by rising fuel prices and consumer concerns about climate change.
Electric models are accounted for almost a fifth of new car sales in the UK last year.
But Chief Executive Elon Musk acknowledged last year that prices for new model tesla have become “embarrassingly high” and could hurt demand.
Global Tesla deliveries increased by 40 percent in 2022, but this did not meet market expectations.
That dealt another blow to the company’s share price, which fell more than 65 percent for the year, its worst year since its 2010 IPO.
The sharp drop in stock prices took a toll on Musk’s wealth and knocked him from his spot as the world’s richest man.
Tesla said there have been “significant challenges” over the past year, including semiconductor shortages, rising energy costs and ongoing Covid-related losses.
However, the company said its focus is on “original design and manufacturing processes” and that the recent “normalization” of some cost inflation has allowed it to pass on the savings to mg a customer.
Like other automakers, Tesla is grappling with the possibility of declining demand for electric cars as consumers grapple with rising borrowing costs and fears of an economic slowdown.
After the price cut was announced, Tesla’s stock fell again as investors feared that lower prices would hurt profits.
However, Wedbush analyst Dan Ives said the move was a “cross blow” for Tesla’s rivals. suggesting that new model tesla “will not play well in the sandbox where the EV price war is still going on.”