The low prices in Tesla’s major markets mark a reversal from the strategy the automaker had followed through much of 2021 and 2022 when new car imports boosted supply.
Tesla ( TSLA. O ) has slashed prices on its electric cars in the United States and Europe by 20 percent, ramping up its strategy of deep discounts after missing Wall Street estimates for service delivery in 2022.
The move, which led to a 4.5 percent drop in Tesla shares in pre-market US trading, came after CEO Elon Musk warned that the prospect of a slowing economy and higher interest rates meant it could cut prices to sustain volume growth. at the expense of profit.
The low prices in Tesla’s major markets mark a reversal from the strategy the automaker had followed through much of 2021 and 2022 when new car imports boosted supply. Musk admitted last year that prices have been “obscene” and could affect demand.
