Due to the price cuts in the United States, more of the company’s electric vehicles will be eligible for a federal tax credit.
Tesla has reduced the pricing of most of its electric vehicles in the United States and Europe by up to 20% in an effort to stimulate sluggish demand. In the global market for electric vehicles, the carmaker is facing rising competition. It must also deal with rising interest rates in the United States, which have raised the cost of financing automobile purchases. Tesla stock dipped dramatically in early trading Friday after the price reduction were announced, but it ended the day down less than 1%. Since November 2021, the share price has dropped by nearly 70%.