An electric car burning at the Tesla service center in Seongdong-gu, Seoul on the afternoon of the 7th. Provided by Seongdong Fire Station
Tesla, an American electric vehicle company, has recently started selling at a discount of up to 20% in the US and Europe following Asia as inventory has accumulated.
After the acquisition of Twitter, stock prices plummeted due to CEO Elon Musk’s ‘owner risk’, followed by a decrease in sales, raising questions about its growth potential. In addition to this, skepticism about ‘completely autonomous driving’ has grown, and even a fire accident is making matters worse one after another.
According to a Reuters report on the 13th (local time), Tesla posted a 6-20% discount on the sales price of the sedan Model 3 and Model S, and the SUV Model Y and Model X in the US on the evening before. This is the price before the tax credit of up to $7,500 (about 10 million won) granted to electric vehicles under the US Inflation Reduction Act (IRA), which took effect at the beginning of the year, is applied.
Tesla also cut the price of the Model 3 and Model Y in Germany by 1-17% depending on the configuration of detailed options. Prices were also lowered in Austria, Switzerland and France.
Reuters explained that if Americans combine long-range Model Y vehicles with tax credits, they can buy a new car at about 31% cheaper than before. In particular, with this cut, several models of Tesla, including the Model Y 5-seater, were newly included in the tax credits.
Last week, Tesla also lowered prices by around 10% on major models in the Asian market, including China, Korea, Japan and Australia. Recently, in the United States, Tesla’s new car inventory is increasing, and used car prices are also showing a downward trend.
While Tesla’s market share is declining due to the rapid growth of electric vehicles by competitors such as Hyundai Motor Group, controversy over Musk’s acquisition of Twitter overlapped. In addition, traffic accidents and fire incidents related to autonomous driving continue at home and abroad. Accordingly, the industry also raised the view that it is a sign that Tesla’s hegemony in the electric vehicle market is shaking.
