Tesla Cuts Prices Sharply as It Moves to Bolster Demand

Tesla has cut prices on its two most popular electric cars in the United States and Europe by as much as 20 percent in a bid to spur slackening demand.

The move comes after the automaker lowered prices in China and reported a global sales total for 2022 that was below analysts’ expectations. After the latest price cuts were reported, Tesla stock was down 6 percent in premarket trading on Friday. The share price has fallen by roughly 70 percent since November 2021.

The lowered prices appeared on Tesla’s website late Thursday. The automaker now shows a high-end Model 3 Performance compact selling for just under $54,000, down from $63,000, a cut of 14 percent.

The most affordable version of the Model 3 now sells for just under $44,000, a reduction of about $4,000.

For some of the lower-priced models, the cuts put them in range to qualify for federal tax credits of $7,500 that were made available starting Jan. 1 under the Inflation Reduction Act. The credit is available on electric cars priced under $55,000.

This is developing story. Check back for updates.

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