Tesla turns up heat on rival brands with global price cuts

  • Tesla aggressively slashed the pricing of its electric vehicles in 2022 by as much as 20 per cent, taking the fight to its rival brands' doors.
Tesla has reduced pricing across its entire portfolio in several markets around the world. (Bloomberg)
Tesla has reduced pricing across its entire portfolio in several markets around the world.

Tesla has taken the price cut strategy to retain its dominance in the global electric car market, which is witnessing the rise of several automakers with their respective products. wall Street estimates that in 2022 alone, Tesla has slashed the pricing of its electric vehicles by as much as 20 per cent in a bid to retain its supremacy in the zero-emission car market. Interestingly, this move marks a 180-degree turnaround from the Ev maker's strategy over the last two years when the new vehicle orders exceeded supply.

The strategy of price reduction comes after the Tesla CEO Elon Musk warned that the automaker may reduce pricing of its cars comprising the profit margin. He hinted that the prospect of recession and higher interest rates meant that Tesla could lower prices to sustain growth at the expense of profit. He acknowledged in 2022 that prices of the Tesla cars had become embarrassingly high and could hurt demand. In fact Tesla stock took a hit last year marking its worst yearly performance ever since inception, owing to the slowing growth in China.

Also check these Cars

Find more Cars
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon75 kWh Range Icon396 km
₹70 Lakhs - 1 Cr
Alert Me When Launched
Lexus Es (HT Auto photo)
Engine Icon2487.0 cc FuelType IconMultiple
₹ 56.55 - 62.19 Lakhs
Compare
View Offers
Bmw I4 (HT Auto photo)
BatteryCapacity Icon83.9 kWh Range Icon493 Km
₹ 69.90 Lakh
Compare
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
Alert Me When Launched
Hyundai Creta (HT Auto photo)
Engine Icon1497 cc FuelType IconMultiple
₹ 11 - 20.15 Lakhs
Compare
View Offers
Mahindra Thar (HT Auto photo)
Engine Icon2184 cc FuelType IconMultiple
₹ 11.25 - 17.20 Lakhs
Compare
View Offers

Also Read : EVs may eventually kill growing demand for SUVs. Here's why

As part of the price reduction strategy, Tesla has reduced prices of its cars in the United States, China, Europe, Middle East and Africa. The price reductions have been announced through a series of cuts over the past few weeks. Reuters reports that this move comes as a clear shot at the smaller rivals and legacy automakers as well. The smaller brands have been bleeding cash and can't take a price cut measure like Tesla, while the legacy car brands too ar aggressively ramping up their EV production. As analysts claim, Tesla is facing surging competition and responding to that with price cuts.

These price cuts and discounts announced by Tesla would further sulvage the brand, resulting in sales boost, specially in markets like US and France, where the buyers could take advantage of both the discounts and federal tax credits available for EV purchase.

First Published Date: 16 Jan 2023, 14:39 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.