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Tesla lowers electric car costs in US

IFM_Tesla Electric Car
Tesla also reduced its prices in China and other Asian regions

According to Tesla’s website, the automakers have reduced the price of its best-selling electric automobiles for the American market.

According to an estimate by Reuters, the price reductions for the Model 3 and Model Y ranged between 6% and 20% from the rates that prevailed before the reduction.

That figure is before the USD 7,500 federal tax credit, which goes into effect for several electric vehicle models at the beginning of January.

Recently, Tesla also reduced its prices in China and other Asian regions. The China price for a Model 3 or Model Y was down 13% to 24% from September after the new shift, together with a prior price reduction announced in October and current incentives.

To maintain its leadership in the worldwide market for electric vehicles, which is seeing the emergence of other manufacturers with their models, Tesla has adopted a price reduction approach.

According to predictions from Wall Street, Tesla will cut the price of its electric vehicles by as much as 20% in 2022 alone to maintain its dominance in the zero-emission automobile market. This action represents an interesting 180-degree shift from the EV manufacturer’s policy over the previous two years when new vehicle orders outpaced supply.

As part of its pricing plan, Tesla has lowered the cost of its vehicles in China, the United States, Europe, the Middle East, and Africa. Over the previous few weeks, several price drops have been made public to announce the price reductions. This action is a direct jab at the established automakers and the smaller rivals.

The legacy automakers are actively scaling up their EV manufacturing, while the smaller brands are bleeding money and cannot implement price cuts like Tesla. According to analysts, Tesla is experiencing increased competition and lower prices.

Price reductions for Tesla are also in effect in Singapore, Australia, South Korea, and Japan. The United States is Tesla’s largest market, and China is its second-largest market.

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