Jakarta, CNBC Indonesia – Electric car maker Tesla Inc slashed the global price of its electric vehicles by 20%. Tesla reduced prices across the United States, Europe, the Middle East and Africa, following a series of price cuts in Asia last week.
The move marks a reversal of the strategy over the past two years when new vehicle orders exceeded supply. It comes after Tesla CEO Elon Musk warned that a recession and rising interest rates could drive down prices to keep the company growing.
Reported from Reuters, Musk admitted last year that the price of Tesla’s products was getting too high and could hurt demand. Meanwhile, analysts at Great Hill Capital said Tesla’s efforts to lower prices were a clear step in the face of competition.
“Competition is coming and they are responding with price cuts,” said Thomas Hayes, chairman and managing member at Great Hill Capital, quoted Saturday (14/1/2023).
Furthermore, discounts on Tesla products can make electric vehicle (EV) cars more affordable to people who were previously valued outside the market. US and French buyers can take advantage of discounts and federal tax credits available in both countries for select electric vehicle purchases.
The US price cut for Tesla’s global top sellers, namely the Model 3 sedan and the Model Y crossover SUV, is between 6% and 20%. Calculation Reuters shows, the Model Y which costs US $ 65,990 fell (Rp 1.01 billion) to US $ 52,990 (Rp 812 million).
The cut comes before a $7,500 US federal tax credit that applies to many electric vehicles as of January 1 with discounts of up to 30%. In addition, Tesla also slashed the prices of its Model X luxury crossover SUV and Model S sedan in the US.
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