Tesla Discounts Its Vehicle Prices Worldwide

Tesla Reports Quarterly Earnings, Missing Wall Street's Expectations

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Tesla slashed prices globally for many of its electric vehicles this week. The price for a new Tesla in the U.S. is now discounted by as much as 20%. This comes after Tesla EVs fell in demand in recent months in the U.S. and abroad. While Tesla still sells more EVs than any other automaker in America, legacy car manufacturers like General Motors and Ford are emerging with their own competitively priced electric vehicles.

Tesla's Model 3 Performance, one of its most popular vehicles is now 14% cheaper in the U.S. This version of the Model 3 had an MSRP of $63,000 last month, and now the same exact EV can be purchased for $54,000. Tesla's Model Y saw a 20% price cut from $66,000 and is currently priced at $53,000.

The price cuts now make multiple Tesla models qualify for a $7,500 federal tax credit. These tax credits came into effect on Jan. 1 under the Inflation Reduction Act which provides a $7,500 tax credit when purchasing electric vehicles that cost less than $55,000.

Tesla has seen a recent slow in sales around the world and it appears the company is cutting prices to stay competitive with other emerging automakers in the electric vehicle space. In 2022 Tesla lost its lead as the world's preeminent EV seller. Chinese car manufacturer BYD now holds that title as it sold more EVs than Tesla last year. The majority of BYD's EV sales were to customers in mainland China.

China was the first market to see Tesla discounts. Tesla cut the price of its cars in China by up to 9% in October. Some customers in China that purchased Teslas before the October discount became upset with the EV maker and even protested in some of Teslas' Chinese dealerships, demanding a refund of the price difference. In January a second round of discounts was made in China as Tesla slashed prices in the U.S. and Europe.

Tesla's stock price lost a considerable amount of value in 2022. Its stock is down over 64% from this time last year, falling further than many comparable automotive and tech stocks over the same period. Tesla CEO Elon Musk purchased the social media site Twitter for $44 billion in October and sold roughly $40 billion in Tesla stock over the past year presumably to finance the purchase of his newest company.

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