(New York) Tesla, to boost its sales, has made price cuts of up to 20% in Europe and the United States on its most popular cars, Model 3 and Model Y, an initiative freshly received on Wall Street.
The action of the manufacturer, in sharp decline for more than a year, fell again by 4.4% at the start of the session on Friday.
“It’s no secret that demand for Tesla, amid a slowing global economy in 2023, is starting to see some cracks,” Wedbush’s Dan Ives said in a note.
The group has already lowered its prices twice in China in recent months and offered unusual promotions in North America at the end of 2022 for customers agreeing to take possession of a new car before the end of December.
That hadn’t been enough to achieve his own goals.
In 2022, the group delivered 1.31 million electric vehicles, which represents a record and a jump of 40% over one year. But Elon Musk’s company has set itself the goal of increasing its deliveries in the long term by an average of 50% per year.
Investors are concerned that sales will slow due to the economic slowdown, rising interest rates that make it more expensive to buy a car and the arrival of multiple competitors in the electric vehicle market.
In a message from a spokesperson in Europe, Tesla blames lower prices in the area on price stabilization and growth for the group.
“As we come out of a year where the supply chain has been particularly disrupted, we have seen a stabilization in the inflation of certain costs, giving us enough confidence to be able to pass this on to our customers”, is-there- he explains.
“As local production of our vehicles continues to expand and generate new economies of scale globally, we are now making the Model 3 and Model Y even more accessible in Europe,” Tesla adds.
For Dan Ives, this decision comes at the right time.
“Tesla now has global reach” with ramping up factories in the United States, Germany and China, “and has the leeway to take aggressive steps like this to gain share market in this race for electric vehicles,” he noted.
He estimates that the discounts could boost deliveries by 12% to 15% in 2023.