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<p>Elon Musk-owned Tesla is offering bumper discounts. For the fifth time since January, the electric vehicle maker has slashed the prices between two per cent and nearly six per cent. The continuation of the discount drive in Tesla's largest market could hurt profitability, caution experts.&nbsp;</p>

<p>According to Tesla's website, the cuts ranged from two per cent on the Model 3 performance version to nearly six per cent on the basic version of Model S. The company also slashed $2,000 off the price of Model Y — its most popular small SUV, adding a lower-cost dual-motor version at $49,990.&nbsp;</p>

<p>Cumulatively, Tesla has reduced the price of its base Model 3 by 11 per cent since the beginning of the year while Model Y has witnessed an even steeper 20 per cent reduction.&nbsp;</p>

<h2><strong>US prepares to adopt tougher standards</strong></h2>

<p>The move comes at a time when the US government is preparing to adopt tougher standards that may limit EV tax credits. Tesla earlier this month said the Model 3 rear-wheel drive credit will be reduced as a result of the guidance.</p>

<p>The Biden administration is expected to publish a revised list of qualifying models and tax credit amounts later this month.&nbsp;</p>

<p><a href="https://www.wionews.com/videos/elon-musk-loses-worlds-richest-crown-after-tesla-shares-fall-50-world-business-news-wion-579672"><strong>WATCH |&nbsp;Elon Musk loses world's richest crown after Tesla shares fall 50% | World Business News | WION</strong></a></p>

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<p>Industry experts said Tesla needs to sell more vehicles to keep its factories operating at full capacity as the overhead of underutilised plants can quickly eat into the profit margins. Before the tax credits evaporate, this is the opportunity to let the cars fly out of the Tesla factory shelves.&nbsp;</p>

<p>Moreover, with more and more players jumping on the EV bandwagon, Tesla's novelty factor may have worn off which explains the aggressive price cuts.&nbsp;</p>

<h2><strong>Tesla's sales numbers&nbsp;</strong></h2>

<p>According to sales figures released earlier this month, Tesla, which does not break out sales by country said the deliveries rose 36 per cent last quarter to 422,875.&nbsp;</p>

<p><a href="https://www.wionews.com/trending/tesla-50-per-cent-price-cut-creates-havoc-in-chinese-market-report-575008"><strong>ALSO READ |&nbsp;Tesla’s 50 per cent price slash creates ‘havoc’ in Chinese electric car market: Report</strong></a></p>

<p>The numbers were significantly higher than the 310,000 deliveries recorded a year ago but still fell short of analyst estimates of 432,000. Despite missing the target, the company has set an ambitious goal of hitting 1.8 million deliveries this year.&nbsp;</p>

<p>Apart from the USA, Tesla made news last month when it triggered a price war among the electric carmakers in the hyper-competitive Chinese market by announcing a 50 per cent reduction in prices.&nbsp;</p>

<p><em>(With inputs from agencies)</em><br />
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Elon Musk-owned Tesla is offering bumper discounts. For the fifth time since January, the electric vehicle maker has slashed the prices between two per cent and nearly six per cent.

Elon Musk-owned Tesla is offering bumper discounts. For the fifth time since January, the electric vehicle maker has slashed the prices between two per cent and nearly six per cent. The continuation of the discount drive in Tesla's largest market could hurt profitability, caution experts. According to Tesla's website, the cuts ranged from two per cent on the Model 3 performance version to nearly six per cent on the basic version of Model S. The company also slashed $2,000 off the price of Model Y — its most popular small SUV, adding a lower-cost dual-motor version at $49,990. Cumulatively, Tesla has reduced the price of its base Model 3 by 11 per cent since the beginning of the year while Model Y has witnessed an even steeper 20 per cent reduction. US prepares to adopt tougher standards The move comes at a time when the US government is preparing to adopt tougher standards that may limit EV tax credits. Tesla earlier this month said the Model 3 rear-wheel drive credit will be reduced as a result of the guidance. The Biden administration is expected to publish a revised list of qualifying models and tax credit amounts later this month. WATCH | Elon Musk loses world's richest crown after Tesla shares fall 50% | World Business News | WION × Industry experts said Tesla needs to sell more vehicles to keep its factories operating at full capacity as the overhead of underutilised plants can quickly eat into the profit margins. Before the tax credits evaporate, this is the opportunity to let the cars fly out of the Tesla factory shelves. Moreover, with more and more players jumping on the EV bandwagon, Tesla's novelty factor may have worn off which explains the aggressive price cuts. Tesla's sales numbers According to sales figures released earlier this month, Tesla, which does not break out sales by country said the deliveries rose 36 per cent last quarter to 422,875. ALSO READ | Tesla’s 50 per cent price slash creates ‘havoc’ in Chinese electric car market: Report The numbers were significantly higher than the 310,000 deliveries recorded a year ago but still fell short of analyst estimates of 432,000. Despite missing the target, the company has set an ambitious goal of hitting 1.8 million deliveries this year. Apart from the USA, Tesla made news last month when it triggered a price war among the electric carmakers in the hyper-competitive Chinese market by announcing a 50 per cent reduction in prices. (With inputs from agencies) WATCH WION LIVE HERE:

Tesla slashes car prices in US for fifth time since start of year to spur demand

<p>Billionaire Elon Musk's Tesla has embarked on a strategy that has triggered a price war among the electric carmakers in the hyper-competitive Chinese market. The company has slashed prices of its cars, up to 50 per cent, that has forced other companies to take similar steps in order to stay competitive. Tesla's deep price cut even threatens to drive competitors out of the market.</p>

<p>Tesla's gameplan came into force last October. Tesla, a dominant player in the Chinese market, manufactures its cars at its factory in Shanghai. The initial price cut in October was followed by another round which made Tesla's locally manufactured cars 14 per cent cheaper than they were last year. In some cases, the cars were 50 per cent cheaper than their price in the US and Europe.</p>

<p>Tesla's aggressive pricing strategy forced other carmakers to reduce prices of their models. Both, local and global brands have got drawn into the price war. These include Xpeng, Nio Volkswagen, Mercedes-Benz to name a few.&nbsp;</p>

<p>Mercedes Benz has offered a discount of up to 70,000 yuan (USD 10,000). Ford Motor Company has brought down the price of its Mach-E electric sport utility vehicle to 209,000 yuan. This makes it cheaper by about a third than it is in the US.</p>

<p>“Tesla created havoc for the rest of the market,” said Jochen Siebert, managing director of JSC Automotive, a consultancy with offices in Shanghai and Stuttgart.<br />
&nbsp;&nbsp;<br />
Siebert was quoted by Bloomberg in its report over the situation.</p>

<p><em>(With inputs from agencies)</em></p>

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Billionaire Elon Musk's Tesla has embarked on a strategy that has triggered a price war among the electric carmakers in the hyper-competitive Chinese market. The company has slashed prices of its cars, up to 50 per cent, that has forced other companies to take similar steps in order to stay competitive.

Billionaire Elon Musk's Tesla has embarked on a strategy that has triggered a price war among the electric carmakers in the hyper-competitive Chinese market. The company has slashed prices of its cars, up to 50 per cent, that has forced other companies to take similar steps in order to stay competitive. Tesla's deep price cut even threatens to drive competitors out of the market. Tesla's gameplan came into force last October. Tesla, a dominant player in the Chinese market, manufactures its cars at its factory in Shanghai. The initial price cut in October was followed by another round which made Tesla's locally manufactured cars 14 per cent cheaper than they were last year. In some cases, the cars were 50 per cent cheaper than their price in the US and Europe. Tesla's aggressive pricing strategy forced other carmakers to reduce prices of their models. Both, local and global brands have got drawn into the price war. These include Xpeng, Nio Volkswagen, Mercedes-Benz to name a few. Mercedes Benz has offered a discount of up to 70,000 yuan (USD 10,000). Ford Motor Company has brought down the price of its Mach-E electric sport utility vehicle to 209,000 yuan. This makes it cheaper by about a third than it is in the US. “Tesla created havoc for the rest of the market,” said Jochen Siebert, managing director of JSC Automotive, a consultancy with offices in Shanghai and Stuttgart. Siebert was quoted by Bloomberg in its report over the situation. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Tesla’s 50 per cent price slash creates ‘havoc’ in Chinese electric car market: Report

<p>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.&nbsp;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.&nbsp;</p>

<p>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."&nbsp;</p>

<p>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."</p>

<p>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.&nbsp;</p>

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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.

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. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

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

Tesla shares are under pressure, the electric car maker has been poorly performing on the stock market since the day its CEO Musk announced the selling of his shares after concluding a poll on Twitter.

Tesla Shares continue to dip after Elon Musk's tweet