Tesla, the electric vehicle manufacturer led by Elon Musk, announced today that it will lower the prices of the best-selling models in Europe and the United States after the big price cuts in China and Japan. Model 3 and Model Y will be on sale. Price reductions of up to 20%. The Model Y Performance is down to $56,990. This will have an indirect impact on the shipping service industry.
In launching a price war against Tesla, Agence France-Presse reported that Daniel Ives, an analyst at Wedbush Securities, pointed out: “With global growth slowing down this year, Tesla (electric vehicles) ) demand is starting to see an impact.” Still, Ives said the price cuts were “the right thing to do.”
Tesla has cut prices twice in the Chinese market in recent months, and it also offered rare promotions in North America late last year. Last year, Tesla delivered a record 1.31 million electric vehicles, an annual growth rate of 40%. However, this achievement is still lower than Musk’s long-term goal of increasing the annual delivery of vehicles by an average of 50%. Investors worry that a slowing economy and rising interest rates could increase the cost of borrowing to buy a car and lower sales.
Tesla’s stock market fell as much as 4.5% in early trading today, and its stock price has weakened for more than a year.