Tesla has once again reduced the prices drastically to increase its sales and give a tough challenge to the rival company. In America, the company is offering four to nine percent discount on its expensive models. This discount is being given on the company’s sports car Model S (Model S) and mid-size sports utility vehicle Model X (Model X). Similarly, the company is offering discounts on the Model 3 sedan and Model Y in Europe and the UK. The Model 3 has received a six per cent price cut in the UK. Now its price there has fallen from £60,090 to £56,540.
lack of demand
Last year, the company had set a target of delivering 50 per cent more vehicles but failed to achieve it. The company said that this problem occurred due to supply chain problems and weakness in the economy. Musk had earlier said that demand is increasing due to the reduction in prices. In a presentation with investors last week, he said that people are eager to buy Tesla cars but they do not have the money for it. In January, he had said that due to the slowdown, there would be a drop in demand this year.
The company had first cut prices by up to 20 per cent in January. After this, the company had increased the price of many models in some countries. Tesla continues to dominate the electric car market, but has recently been challenged by several auto companies. In the US market, it is facing competition from auto majors like Ford and General Motors. These companies have entered the electric car market. Along with this, new companies like Rivian and Lucid are also getting rid of Tesla’s sixes.
Chinese companies made trouble
BYD and Nio have kept Tesla in trouble in the Chinese market. Tesla, the world’s most valuable auto company, has made a big investment in China. This company has the largest plant in China and China is the second largest market for it. Musk himself considers Chinese companies a big threat to him. He says that the Chinese market is the most competitive in the world. “Chinese companies work hard and work smart,” he said. In the coming days, a Chinese company can give a tough challenge to Tesla in the electric car market.
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