American electric car manufacturer Tesla has reduced the prices of its cars in Europe, Israel and Singapore. A week ago, the company made cars cheaper in the United States, for the fifth time since January.
Thanks to discounts, Tesla increased sales by four percent in the first quarter, but investors are worried about profit margins that are well above the industry average. Reuters reported about it today.
A few days after the sales numbers were published, the automaker announced the aforementioned price reduction in the US. At the same time, the company stated that due to stricter American standards, the $7,500 (over CZK 158,000) tax credit that can be used for its basic Model 3 electric car starting this January will be halved from April 18. Subsidies for electric cars are part of the American Inflation Reduction Act (IRA).
In Germany, the automaker reduced the price of its Model 3 and Model Y cars by 4.5 to 9.8 percent, according to current data on the company’s website. Tesla has discounted its cars there for the second time this year, in January it was up to 17 percent.
Tesla is the car company with the highest market value in the world. Last year, the company failed to meet the goal of its boss, Elon Musk, who expected sales to grow by 50 percent. Due to logistical problems and weaker demand, the automaker increased sales by 40 percent, according to Musk, the January discounting led to an increase in orders.
Tesla will announce its first quarter earnings next week.
