In an unprecedented move, Tesla, the American electric vehicle manufacturer, has once again reduced the prices of its automobiles, marking the fifth such occurrence in just over three months. According to a recent report by Reuters, the company has implemented price cuts of up to 6% across its entire range of electric vehicles.
The price of the popular Model 3, for example, has been lowered by a cool grand, making it more accessible to consumers at a starting price of $41,990, as indicated on Tesla's website. More generous discounts have been applied to the higher-end configurations, such as the Model Y Long Range and Performance models, which have each seen a $2,000 price reduction. The new starting prices for these models are now $52,990 and $56,990, respectively.
Furthermore, the company's flagship models, the Model S and Model X, have not been spared from the price-slashing trend. Both models have experienced significant price reductions earlier this year, with an additional $5,000 decrease bringing their starting prices to $84,990 and $94,990, respectively. As noted by Electrek, the base Model S has experienced a staggering $20,000 price drop since 2022, while the Model S Plaid has become over $25,000 more affordable in just a few short months.
Despite these aggressive pricing strategies, Tesla has reported a record-breaking delivery of nearly 423,000 electric vehicles during the first quarter of 2023. This achievement was reached amidst ongoing price reductions in the United States, China, and other nations. While this figure represents a 4% increase from the previous quarter, it has still fallen short of analysts' expectations.
Tesla's ambitious goal for the year is to deliver a total of 1.8 million electric vehicles. However, the first-quarter results suggest that the company is not on track to meet this target. Some analysts speculate that while the frequent price cuts may indeed stimulate demand and strengthen Tesla's position in the increasingly competitive electric vehicle market, the company's profit margins may ultimately suffer due to the modest increase in deliveries observed thus far.
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