Tesla, the American electric vehicle (EV) manufacturer, has once again reduced the prices of its cars in a bid to boost sales and stay competitive in the rapidly growing EV market. This marks the fifth time the company has cut its prices since the beginning of the year, following a series of discounts introduced in January that shook up the industry and prompted rivals to respond in kind.
The latest reductions vary depending on the market and model, but are worth several thousand pounds. In the US, for example, discounts of between 4% and 9% have been applied to the more expensive vehicles, the Model S and Model X, while in Europe and the UK, the Model 3 sedan and Model Y have seen their prices cut. In the UK, the cost of some versions of the Model 3 has dropped by around 6%, from £60,090 to £56,540.
Tesla’s move comes as the company faces challenges from rising borrowing costs and increased competition in the EV market. While Tesla has been the dominant player in the market for some time, traditional carmakers such as Ford and General Motors have begun to release their own EV models, while newer entrants to the market, such as Rivian and Lucid in the US and China’s BYD and Nio, have also emerged.
Last year, Tesla missed its target of increasing deliveries by 50% annually, citing supply constraints and a weakening economy as factors. However, the company’s CEO, Elon Musk, has remained bullish about the future, saying that the desire for people to own a Tesla is high and that price cuts are working to lift demand. In a recent presentation to investors, Musk said that the company’s focus on price would continue to drive sales growth.