Tesla has slashed prices for its entire electric vehicle range in the US for the third time this year in a clear attempt to draw more buyers as interest rates rise.
Friday’s reductions included $5,000 off the pricier S saloon and X large SUV models, while the Y small SUV – the most popular – saw a $2,000 price cut and a new dual-motor version priced at $49,990 was introduced.
The 3 small sedan also got a $1,000 drop.
The move comes as Tesla’s sales in Q1 increased by 36% compared to the same period last year, yet it still didn’t meet analysts’ expectations.
Sunday saw the company announce that it had shipped a record-breaking 422,875 vehicles worldwide from January to March, lower than the anticipated 432,000, according to FactSet.
Sam Abuelsamid, Guidehouse Research e-mobility analyst, explained that if Tesla wants to remain profitable, it needs to sell more vehicles to keep its factories running at maximum efficiency.
“Underutilized plants can rapidly eat into profit margin”, he said.
Tesla now has plants in the US (Fremont, California and Austin, Texas), as well as in Shanghai and near Berlin.
