Tesla expands global discount drive with price cuts in Europe, Israel and Singapore
Tesla has extended its global discount campaign, which it began in China in January, to Europe, Israel and Singapore, with the aim of boosting demand. However, the move has raised concerns about the company’s high profit margin.
Despite offering discounts in several countries, Tesla’s Q1 deliveries rose by just 4% from the previous quarter, prompting the company to lower prices in the US for the fifth time this year. Tesla missed its CEO Elon Musk’s delivery target of 50% growth in 2022, achieving only a 40% increase due to logistical issues and slowing demand.
The company cited increased production capacity as the reason for price reductions in several European markets, including Germany and France, where prices for the Model 3 and Model Y were reduced by between 4.5% and 9.8%.
Tesla also cut prices in Israel, with the base Model 3 seeing a 25% reduction, while Singapore saw reductions of between 4.3% and 5% for the Model 3 and Model Y.
Musk has stated that lowering prices is key to driving demand, and January’s discounts were successful in generating orders. The company has reduced the price of its base Model 3 in the US by a total of 11% this year, with a 20% reduction for the base Model Y.
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