Tesla Lowers Prices on All Models Sold in the U.S.

Tesla Inc. is an American Electric Vehicle and Clean Energy Company Based in Palo Alto, California.

Tesla's mission is to accelerate the world's transition to sustainable energy. The company designs, manufactures, and sells electric vehicles, solar panels, and solar roof tiles. Tesla also offers energy storage solutions through its Powerwall and Powerpack products.

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In an effort to attract new buyers, Volkswagen is cutting prices for some of its vehicles sold in the U.S. by nearly 20%. This comes at a time when Wall Street is concerned that appetite for the car maker’s vehicles is weakening. Tesla has announced price cuts for its entire lineup of vehicles. The cuts are significant, and will likely allow many buyers to qualify for the $7,500 U.S. government tax credit. This is good news for Tesla fans, as the company's vehicles just got more affordable.

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Elon Musk's car company, Tesla, has slashed the price of its baseline Model Y crossover by almost 20% to $52,990, not including certain fees. This enables buyers to qualify for the tax incentive by putting the vehicle below a $55,000 cap. Tesla has also cut the price of a high-performance version of its Model 3 sedan by 14% to $53,990, which puts that configuration within the price range needed for buyers to receive the tax benefit.

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Tesla's Model 3 and Model Y are its bestselling vehicles, accounting for the majority of the company's output. Tesla has also lowered prices for its Model S luxury sedans and Model X sport-utility vehicles. The company was not available for comment when asked.
Tesla has cut prices in the US by up to around 13% after deliveries of its Shanghai-made cars plunged in December. This is the second round of price cuts Tesla has made in China in the past week.

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As both traditional car companies and newer entrants introduce new models to the electric-vehicle market, Tesla is facing more competition and losing market share.
Last month, Mr. Musk suggested that the higher interest rate environment was hurting vehicle demand. In order to boost sales, Tesla offered discounts to many buyers who agreed to take delivery of vehicles before January.

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Tesla failed to meet its 2022 growth target, delivering 1.31 million vehicles last year, up roughly 40% from 2021. The company had initially aimed to increase annual vehicle deliveries by ^50% or more. Tesla's stock suffered its worst annual performance in 2022, with the company's stock falling about 65%. This capped a difficult year for Tesla, which saw subdued delivery figures.