Tesla slashes prices of Model 3, Model Y EVs in the US
- Tesla has cut pricing of its electric cars a number of times this year with the aim to beat back against rivals.
Tesla, the world's largest manufacturer of electric vehicles (EVs) has reduced the pricing of its Model 3 and Model Y offerings in the US in what is being seen as a bid to beat back against strong competition. While the Model 3 is Tesla's most-affordable EV across the world, the Model Y electric SUV is counted among its bestsellers as well.
Tesla Model 3 in the US is now priced at $38,990 ( ₹32.44 lakh), down from $40,240 ( ₹33.48 lakh). The Tesla Model Y EV has a new price of $48,490 ( ₹40.35 lakh), reduced from $50,490 ( ₹42 lakh). The cut in pricing of two of its most popular models doesn't come as much of a surprise and is on expected lines.
Tesla has waged a very aggressive price war in the EV market across the world and while it has a sizeable lead against all of its rivals, competitors remain determined to close the still wide gap. Markets such as the US remain critical for EV brands even though inflation and economic pressures are very real concerns too. "One day it seems like the world economy is falling apart, next day it's fine. I don't know what the hell is going on," Tesla CEO Elon Musk had told analysts on a conference call in July. “We're in, I would call it, turbulent times."
Price cuts on EVs have put pressure on gross margin for Tesla but Musk has made no secret of his ambitions of driving up volumes. "I think it makes it does make sense to sacrifice margins in favor of making more vehicles," he had previously said.
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Of ambitions and achievements
Tesla has some mammoth ambitions and is looking at selling 20 million EVs globally by 2030. It is a herculean task but one that the US-based EV giant is determined to achieve. In September, the company announced it had produced five million EVs with the last million taking all of six months.
The company currently operates four production facilities across the globe and is looking at more manufacturing facilities. It is also eyeing more markets to sell its EVs, particularly developing markets like India and Brazil. India is the world's third largest car market - after China and the US, but electric car space remains in infancy.
Note: All price conversions to ₹are approximate only