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- May 12, 2025 2:47 am
- California
April 20, 2023: On Tuesday, Tesla cut prices for a few of its Model Y and Model 3 E.V. in the United States, its website showed, the sixth time it has decreased U.S. costs this year between the concerns regarding the effect on its profit margins.
Tesla, which is yet to report January-March quarter outcomes, cut the prices of its Model Y “long-range” and “performance” vehicles by $3,000 each and it’s Model 3 “rear-wheel drive” by $2,000 to $39,990 on Wednesday.
The firm led by Elon Musk has slashed U.S. prices of its Model 3 by 11% this year and that of its base Model Y by 20%, transfers that come as the U.S., its largest market, prepares to introduce stricter standards that will limit E.V. tax credits.
The firm recently lowered prices in Europe, Israel, Singapore, Japan, Australia, and South Korea, which states a discount drive started in China in January to spur demand.
Yet, Tesla, earlier this month, stated a 4% sequential rise in deliveries in the initial quarter, much below the 17.8% sequential increase in the fourth quarter.
The aggressive price slash has also increased concerns about the Austin, Texas-based firm’s industry-leading profit margins.
While Tesla is anticipated to report a 24.2% year-on-year increase in first-quarter earnings to $23.29 billion, analysts’ average profit estimate has decreased by nearly 2.4% in the last three months, the Refinitiv data states.
Tesla’s stock price has risen below 50% this year through Tuesday.
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