{"id":78504,"date":"2023-01-13T16:45:07","date_gmt":"2023-01-13T16:45:07","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2023\/01\/13\/tesla-cuts-prices-by-up-to-a-fifth-to-boost-demand\/"},"modified":"2023-01-13T16:45:07","modified_gmt":"2023-01-13T16:45:07","slug":"tesla-cuts-prices-by-up-to-a-fifth-to-boost-demand","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2023\/01\/13\/tesla-cuts-prices-by-up-to-a-fifth-to-boost-demand\/","title":{"rendered":"Tesla cuts prices by up to a fifth to boost demand"},"content":{"rendered":"
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Tesla has slashed the price of some of its most popular electric cars by thousands of pounds in Europe and the US to spur customer demand.<\/b><\/p>\n<\/div>\n

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The company faces a difficult global economic outlook and increasing competition from other automakers.<\/p>\n<\/div>\n

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Price cuts range from 10% to 13% in the UK, but up to 20% on some US models.<\/p>\n<\/div>\n

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New UK buyers save \u00a35,500 on the entry-level Model 3 and \u00a37,000 on the most affordable Model Y.<\/p>\n<\/div>\n

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However, more than 16,000 customers bought these best-selling models last year, and some were upset that they had paid more.<\/p>\n<\/div>\n

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One wrote in a Facebook group for Tesla owners: “I just picked up the car yesterday. What should I do? Go to Tesla and return the car? I can’t believe I lost \u00a35k” a few hours after picking up the car.<\/p>\n<\/div>\n

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Tesla had a similar reaction from customers in China, where it announced price cuts last week.<\/p>\n<\/div>\n

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Over the weekend, angry owners demonstrated outside Tesla distribution centers in Shanghai and other cities, demanding compensation. <\/p>\n<\/div>\n

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Tesla has cut prices in China twice in the past six months, and they’re now 13% to 24% below September levels.<\/p>\n<\/div>\n

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To avoid similar objections in the US and Europe, Tesla said customers who have ordered but not yet received their vehicle would be charged at the new lower price.<\/p>\n<\/div>\n

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Ginny Buckley of electric vehicle market Electrifying.com said the price cuts are still controversial and are bound to send “shockwaves” through the industry as Tesla moves from a premium to a mainstream product.<\/p>\n<\/div>\n

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Paul Hollick, chairman of the Association of Fleet Professionals, welcomed the price cuts and said they would make EVs more affordable for its members. However, the “disorderly marketing” isn’t good news, he said.<\/p>\n<\/div>\n

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\u201cA step like this inevitably puts you in a bad mood. The company would do well to institute some form of redress,” he said. <\/p>\n<\/div>\n

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The electric car maker has grown rapidly in recent years, evolving from a niche premium brand to a mass-market manufacturer.<\/p>\n<\/div>\n

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But there are challenges. <\/p>\n<\/div>\n

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Slowing global growth and higher interest rates, not to mention increasing competition from more established automakers and Chinese brands, threaten its expansion.<\/p>\n<\/div>\n

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When demand for Tesla cars far outstripped supply, it was able to keep prices at what Elon Musk himself described as “embarrassing.”<\/p>\n<\/div>\n

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But in a world where more and more electric car brands are competing for an ever-shrinking pool of potential buyers, it can’t afford to if it wants to keep growing.<\/p>\n<\/div>\n

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James Baggot, editor-in-chief of Car Dealer Magazine, said the move will have a major impact on used Tesla prices, which he says have already fallen by more than a fifth in the past year.<\/p>\n<\/div>\n

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The cheapest new Tesla Model 3 in the UK is now \u00a342,990. Model Y vehicles start at \u00a344,990.<\/p>\n<\/div>\n

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But even at the lower prices these models are still subject to the expensive car surcharge in the UK – the \u00a3355-a-year tax applicable from the second to sixth year of registration.<\/p>\n<\/div>\n

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Demand for electric vehicles is steadily increasing, driven by rising fuel costs and customer concerns about climate change.<\/p>\n<\/div>\n

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Electric models accounted for almost a fifth of new car sales in the UK last year.<\/p>\n<\/div>\n

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But CEO Elon Musk acknowledged last year that prices for new Teslas have become “embarrassingly high” and could hurt demand.<\/p>\n<\/div>\n

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Globally, Tesla deliveries rose 40% in 2022, but that fell short of market expectations.<\/p>\n<\/div>\n

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That dealt another blow to the company’s stock price, which fell more than 65% for the year — its worst year since its IPO in 2010.<\/p>\n<\/div>\n

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The dramatic fall in the share price eroded Mr Musk’s fortune and knocked him out of his place as the world’s richest person.<\/p>\n<\/div>\n

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Tesla said there have been “significant challenges” over the past year, including a shortage of semiconductors, rising energy costs and ongoing Covid-related disruptions. <\/p>\n<\/div>\n

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However, the company said its focus on “original design and manufacturing processes” and a recent “normalization” of some cost inflation have allowed it to pass savings on to customers.<\/p>\n<\/div>\n

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Like other automakers, Tesla is grappling with the likelihood of slowing demand for vehicles as customers grapple with rising borrowing costs and concerns about an economic slowdown.<\/p>\n<\/div>\n

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Tesla shares fell again after the price cut announcement as investors feared lower prices would eat away at profits.<\/p>\n<\/div>\n

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However, Wedbush analyst Dan Ives said the move was a “shot across the bow” for Tesla’s rivals. suggesting that Tesla “would not play well in the sandbox in an electric vehicle price war that is now underway.”<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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