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Business & Finance

Tesla cuts prices by up to a fifth to boost demand

By : cd on 14 Jan 2023, 06:13     |     Source: bbcnews

Tesla

Tesla has cut the price of some of its most popular electric cars by thousands of pounds in Europe and the US, in a bid to boost customer demand.

The firm faces a difficult global economic outlook and increased competition from other carmakers.

The price cuts are in the range of 10% to 13% in the UK, but run as high as 20% on some US models.

New UK buyers will save £5,500 on an entry-level Model 3 and £7,000 on the cheapest Model Y.

However, more than 16,000 customers bought those best-selling models last year, and some were angry that they had paid more.

One posted on a Facebook group for Tesla owners: “I just picked up the car yesterday. What should I do? Go to Tesla and give back the car? I can’t believe after a few hours from picking up the car I lost £5k”.

Tesla had a similar response from customers in China, where it announced price cuts last week.

At the weekend disgruntled owners demonstrated outside Tesla distribution centres in Shanghai and other cities, calling for compensation.

Tesla has reduced prices twice in China in the last six months and they are now 13% to 24% below September levels.