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Friday, March 24, 2023

Elon Musk’s Tesla cuts expenses once more in an attempt to enhance sales.

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Tesla is slashing the price of its electric cars again, boosting sales and trying to compete with rivals. The rebate, worth several thousand pounds depending on the market and model, was applied to cars sold on the company’s website in the UK, US, and elsewhere. It follows the steep discounts of up to 20% the company introduced in January. Tesla faces challenges as rising borrowing costs weigh on buyers and rivals offer more electric options.

The company did not respond to a request for comment. Last year, the firm missed its 2022 target of increasing its deliveries by 50% annually, a shortfall the firm blamed on supply strain constraints and a weakening economy. Mr Musk warned in January that he expected a “pretty difficult recession” to hurt demand this year, leading to a contraction for the wider industry.

He expected Tesla sales to continue to grow, pointing to the firm’s focus on price. The latest round of cuts marks the fifth change Tesla has made to prices since the start of the year, when its markdowns shook up the electric car market, prompting some other firms to slash prices in response. Tesla subsequently raised some prices for some models in some countries, but costs remain lower than they were.

In Europe and the UK, the cuts shown on the website apply to Model 3 Sedan and Model Y. For example, in the UK, the Model 3 version costs about 6% less, from £60,090 to £56,540. Tesla’s leadership in the electric vehicle market is also being challenged by increasing competition from traditional automakers such as Ford and General Motors, as well as new entrants such as Rivian and Lucid in the United States and his BYD and Nio in China.


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