San Francisco | Elon Musk-owned Tesla has slashed prices of EVs in its lineup in the US and Europe in an effort to boost sales as its stock plunged more than 60 percent.
The cheapest EV, the Model 3 RWD, has dropped from $46,990 to $43,990, Engadget reports.
In addition, the price of the 5-seater Model Y Long Range dropped by 20 percent, from $65,990 to $52,990.
As a result, the latter model is now eligible for a $7,500 US federal tax credit, resulting in a final price reduction of over 30 percent to $20,500.
Prices were also cut for other models, including the performance versions of the Model 3 and Model Y, and the regular and plaid versions of the Model S and Model X.
However, the price of the Model Y’s 7-seater option has gone up by $1,000 to $4,000.
In Germany, prices for the Model 3 and Model Y were slashed by one to 17 percent, and drops also occurred in Austria, Switzerland and France.
The report states that SUVs priced below $80,000 and cars priced below $55,000 are eligible for the tax exemption.
Meanwhile, the electric carmaker has missed its target of 50 percent growth in production and deliveries for 2022, as its stock plunged nearly 65 percent last year following Musk’s $44 billion Twitter acquisition.
The automaker needed to sell 495,760 vehicles in its fourth quarter to achieve the 50 percent growth guidance.
In the fourth quarter, Tesla produced more than 439,000 vehicles and delivered more than 405,000 vehicles.
Investors fear that the COVID situation in China and supply chain challenges will further affect Tesla sales. They are also concerned about Musk’s distraction by his Twitter overhaul.
Tesla’s CEO recently became the first person to lose $200 billion from his net worth.
Tesla last month announced price cuts on several of its models to sell more vehicles, offering discounts of up to $7,500 for its Model 3 and Model Y vehicles.(IANS)
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