Tesla to cut prices for its electric vehicles in the US and Europe, likely to boost sales. The most affordable EV Model 3 RWD $43,990, while the five-seat Model Y Long Range saw a 20% price cut (from $65,990 to $52,999). In addition, customers in the US can take advantage of a subsidy that went into effect this month to pay even less. Combined, Tesla's discount and the government subsidy significantly lower the price of the Model Y Long Range.
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All other models, including the Model S and Model X and the performance versions of the Model 3 and Model Y, have also seen price cuts. The exception is the seven-seat version of the Model Y, which has seen a significant price increase. With the increase, its price exceeds $55,000, but the vehicle still qualifies for the subsidy. In Germany, Tesla Model 3 and Y prices have been reduced by 1-17%, while reductions have also been made in Austria, Switzerland and France.
To get the full $7,500 federal rebate, customers will need to order before mid-March (when it's expected to be cut in half). The tax credits apply to SUVs priced under $80,000 and cars priced under $55,000. The Model Y fell into both categories, and now all Model Y EVs except the Performance version appear to qualify for the rebate.
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In recent years, Tesla has enjoyed great success, with high sales rates for its electric vehicles. 2022 seems to have been a very good year for the company, judging by its vehicle deliveries. However, Tesla has been facing a number of problems, mainly related to Elon Musk – the Tesla CEO who owns Twitter and SpaceX. In April, investors were shocked when he announced his plan to buy Twitter. He spent the summer trying unsuccessfully to back out of that decision, before finally carrying it out to their great disappointment – they wanted to focus on Tesla instead. The news was accompanied by a sharp decline in the stock company’s – which became even worse when the most recent delivery numbers also failed to meet expectations.
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Now, Tesla is slashing the prices of its vehicles, apparently to attract more customers. New potential buyers will no doubt be happy with these discounts, while those who bought a new Tesla a little earlier will feel out of luck. In fact, some customers who bought Tesla cars recently complained on online forums that the price cuts put them at a disadvantage, leaving them with a lower-value item on the used car.
Source: www.engadget.com
