Tesla, the world’s biggest maker of electric cars, has extended price cuts for its car models globally after cuts in China led to owner protests at car showrooms.
US Model 3 and Model Y prices were between 6 percent and 20 percent lower after discounting, according to a Reuters calculation.
Buyers of various electric vehicle models in the United States have been able to take advantage of a $7,500 federal tax credit starting in early January.
In Germany, discounts on the Model 3 sedan and Model Y crossover – the best sellers in the world – are between 1% and around 17%, depending on the configuration.
Last week, Tesla cut prices in China for the second time in less than three months amid sluggish demand in the world’s second-largest economy and the world’s biggest market for cars and electric vehicles.
It also cut prices in Japan, South Korea and Australia.
China’s move comes after the government ended more than a decade of subsidies for buying electric cars.
Hundreds of Tesla owners have gathered in showrooms and distribution centers across China to protest the price cuts, arguing they have now overpaid for their cars.
Tesla electric car prices in China are now 13% to 24% below September levels.
China accounted for about a third of Tesla’s global sales in 2021 and its Shanghai factory, which employs around 20,000 workers, is its most productive.
Last month, Tesla CEO Elon Musk said “dramatic shifts in interest rates” had changed the outlook for the industry and that Tesla could cut prices to sustain volume growth, which would lead to lower earnings.
The company set another annual delivery record with 1.31 million vehicles shipped in 2022, up more than 40% year-on-year.
Still, Tesla’s deliveries haven’t broken Wall Street estimates or even projections for the company’s 50% growth, despite opening two new factories last year.
Tesla said the “Great 2022” was achieved despite “significant COVID-related and supply chain challenges throughout the year”.
In recent days, Tesla has done a revamp very close to the top of the hierarchy, promoting China boss Tom Chu to take charge of the U.S. assembly plants, as well as sales operations in North America and Europe, according to an internal publication of the management lines. . reviewed by Reuters.
That makes him Tesla’s most high-profile CEO after Musk, overseeing deliveries in all of its key markets.