Tesla (NASDAQ: TSLA) has cut the prices of its electric vehicles in the United States and Europe by as much as 20%, after having missed delivery estimates for 2022. The move, which prompted a 4.5% fall in Tesla’s shares in pre-market U.S. trade, came after CEO Elon Musk warned that a looming recession and risting interest rates meant it could lower prices to sustain volume growth at the expense of profit.
The U.S. price cuts on its global top-sellers the Model 3 sedan and Model Y crossover SUV, were between 6% and 20%, Reuters calculations showed, with the basic Model Y now costing $52,990, down from $65,990. Those prices are before the up to $7,500 federal tax credit that took effect for many electric vehicles at the start of January. These cuts may make EVs affordable to some people who were previously priced out of the market.
Some Tesla customers complained these price cuts left them with a lower resale value.
