Tesla has once again slashed the prices of its Model 3 and Model Y vehicles in the United States, as part of its continued effort to boost demand for its electric cars. This marks the sixth time that the company has reduced prices for its models, with brand-new cars now starting at under $40,000 (Electrek). The latest price cuts mean that Tesla’s most popular models will become even more affordable to consumers.
The move is said to be generating strong results for the American automaker, especially in Europe where the Model Y is poised to be the top-selling car this quarter (Automotive News Europe). The midsize SUV has more than doubled European sales in both February and March compared with the same period last year.
Tesla CEO Elon Musk previously predicted that the Model Y would become the best-selling car in the world, a claim that was scoffed at by many (InsideEVs). However, recent sales numbers seem to suggest that his ambitious speculation is not far off, despite the growing competition.
The price cuts come just ahead of Tesla’s quarterly earnings report, which will likely show strong results for the company. Tesla has cut prices six times this year already, as it aims to drive more consumers to switch to electric vehicles while putting pressure on traditional car manufacturers. Some experts believe that the price cuts could lead to a wider adoption of electric vehicles, which would further accelerate the transition from gas-powered cars (Bloomberg News).
Overall, Tesla’s latest round of price cuts is good news for consumers who are looking for more affordable electric vehicles, and it seems to be paying off for the American automaker as well. The Model Y is proving to be a strong competitor in the market, even challenging ICE models in price (Green Car Reports). With Tesla’s continued push towards greater affordability, it’s possible that we could see a significant shift towards the adoption of electric vehicles in the coming years.
