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Tesla slashes price of its best-selling electric vehicle models in US, Europe

New York, United StatesUpdated: Jan 14, 2023, 12:53 PM IST

Image of Tesla logo for representation. Photograph:(Reuters)

Story highlights

Analyst Dan Ives of Wedbush Securities said: 'It's no secret that demand for Tesla is starting to see some cracks in this global slowdown for 2023' 

Tesla has literally launched a price war with its rivals as it announced on Friday (January 13) that it will cut the price of its best-selling electric vehicle (EV) models. It said that the cut will be up to 20 per cent in Europe and the United States. The announcement comes as competition continues to rise in the growing EV industry. In early trading on Friday, Tesla shares fell as much as 4.5 per cent though there was some recovery later. The shares of Elon Musk-led company have plummeted for more than a year. 

Analyst Dan Ives of Wedbush Securities said: "It's no secret that demand for Tesla is starting to see some cracks in this global slowdown for 2023." 

Ives said the price cut was the "right move" and "a clear shot across the bow at European automakers and US stalwarts (GM and Ford) that Tesla is not going to play nice in the sandbox."

A report by Wall Street Journal noted that the discount now makes it possible for buyers of Tesla's US-built Model Y to take advantage of a tax credit in the US by bringing the price of the car below a $55,000 cap. 

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