Tesla cuts prices in the U.S. and Europe to stoke sales after lackluster year-end deliveries

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Tesla cuts prices in the U.S. and Europe to stoke sales after lackluster year-end deliveries
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Electric vehicle maker Tesla is cutting prices in the United States and throughout Europe again, according to listings on the company's website.

The move in the U.S. may help Tesla qualify for more federal EV tax credits, and stoke sales volume here and abroad, after competition and interest rates increased.

In Europe, Tesla cut prices on its Model 3 and Model Y vehicles in Austria, France, Germany, the Netherlands, Norway, Switzerland and the U.K.that in Germany, Tesla cut prices on the Model 3 and the Model Y from 1% to around 17%, depending on the configuration. Tesla's Model 3 was the bestselling electric vehicle in Germany in December 2022, followed by the Model Y.

Generally, EVs qualify for tax credits in the U.S., depending on what form factor or category they fall into, their efficiency and range as well as the manufacturers' suggested retail price. The latest round of discounts by Tesla may set the company up to reap the benefits of EV tax credits in both the near and longer term. But it also risks upsetting customers who just agreed to take delivery of new electric cars from Tesla before the end of 2022 at higher prices.in China by slashing prices on its Model 3 and Model Y cars there after many had agreed to take delivery at higher prices before Dec. 31.

Tesla now operates its first U.S. vehicle assembly plant in Fremont, California, a newer one in Austin, Texas, its first overseas factory in Shanghai, and a newer one in Gruenheide, Germany.

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