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2025-04-05 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >
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Shulou(Shulou.com)11/24 Report--
According to news on January 15, although Tesla's delivery volume in 2022 fell short of market expectations, the company is taking measures to remain competitive. In recent weeks, Tesla has cut the price of his electric vehicles by as much as 20 per cent worldwide and continues to expand his discount strategy, putting tremendous pressure on competitors or triggering the largest price war in the field of electric vehicles.
The move marks a reversal of Tesla's strategy over the past two years, during which orders for new cars consistently exceeded supply. Earlier, Elon Musk, chief executive, warned that the prospect of a recession and rising interest rates meant Tesla could sustain growth by cutting prices at the expense of profits.
Mr Musk admitted last year that the price of electric cars was "embarrassingly high" and could hurt demand. Tesla also cut prices in the United States, Europe, the Middle East and Africa after a series of price cuts in Asia last week. Analysts believe this will have a significant impact on the strategies of smaller competitors and traditional carmakers to actively increase the production of electric vehicles.
"Competition is coming and they are responding with price cuts," said Thomas Hayes, chairman of Great Hill Capital.
These discounts may make electric cars affordable to people who have previously been turned away because of high prices. Buyers in the United States and France can take advantage of discounts and federal tax credits in both countries to buy certain electric models.
It is reported that the price of Tesla's best-selling Model 3 sedan and Model Y cross-border SUV in the US has been reduced by 6 to 20 per cent, and the price of the entry-level Model Y has dropped from $65990 to $52990. Tesla also lowered the price of Model X luxury cross-border SUV and Model S cars in the United States.
At the same time, the price cuts come before the US federal tax credit of $7500, which many electric cars will continue to be eligible for after January 1, 2023, which could cut the price of some Tesla models by more than 30 per cent.
A spokesman for Tesla's German branch said falling cost inflation was also an important factor in its price cuts in major European markets, but he did not specify which costs were falling. In Germany, Tesla cut the prices of Model 3 and Model Y by about 1 per cent to nearly 17 per cent. The best-selling Model Y is now priced at 44890 euros ($48676), down 9100 euros.
Tesla also reduced the price of cars in Austria, Switzerland and France. In France, consumers who buy Model 3 for 44990 euros will be eligible for 5000 euros of government subsidies.
Deutsche Bank estimates that after a tax credit, the true price of the Model Y could be $18000 lower than the Ford Mustang Mach e. The bank estimates that Tesla's gross profit margin is the highest in the industry, but it will be 3 percentage points lower in 2023 than in 2022. However, Tesla's "bold offensive" ensures growth and will put competitors in a bigger dilemma.
Dan Ives (Dan Ives), an analyst at Wade Bush Securities, said Tesla's price cut could increase global delivery this year by 12% to 15%, suggesting that Musk is responding positively to increasing competition.
However, Tesla fans and customers complain that the price reduction is bad for recent car buyers. Seattle resident Greg Woodfield (Greg Woodfill), who bought Model Y in December, had considered waiting for a US subsidy for the New year before buying a car, but he was attracted by a $3750 discount.
Woodfield, who previously owned a Model 3, said he had no illusions about Musk's antics, but because he liked Tesla's products, he decided to buy another Model Y.
"to be honest, this is a heavy blow to Tesla," Woodfield said. " He added that Tesla tried to boost sales in the fourth quarter with discounts, but it felt unfair that the price had been cut so much a month later. "if Tesla had known the price would be cut so much, they should have done so in December," he said. "
Tesla cut prices in China and other Asian markets last week, which analysts have said will boost demand and increase pressure on competitors such as BYD to follow suit in what could be the biggest price war in the electric car market.
Related readings:
"the lowest in history! Domestic Tesla reduced the price of the whole line: 229900 yuan for Model 3 and 259900 yuan for Model Y. "
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