Tesla aggressively cut down on its prices by up to 20% in a bid to corner rivals after it fell short of its estimated deliveries for last year by Wall Street.
This latest tactic is the reverse of Tesla's price hikes to handle excessive demand for the past two years. Despite lowering the expected profits for 2023, the price cuts are expected to secure the company by maintaining growth.
The move came after Tesla CEO Elon Musk warned of an impending recession. Musk also stated in 2022 that Tesla costs reached "embarrassingly levels," which posed a threat to the demand for its models.
Tesla's shares are currently down to 0.9% after numbers fell by 6.4% on Jan 13. It also had its worst year in 2022 due to lowered sales in China and Musk's venture into Twitter.
The price cuts aren't exclusive to the U.S., as reduced prices are observed in Tesla stores globally. The latest price cuts happened in Asia in which analysts claim that corporations are throttling smaller automakers by producing more electric vehicles.
Chairman and Managing Member at Green Hill Capital Thomas Hayes states, “Competition is coming, and they are responding with price cuts."
The market for electric vehicles (EV) potentially grows bigger as the array of discounts make the EVs accessible to buyers who previously could not afford them.
