Tesla Inc. (NASDAQ: TSLA) shares drop over 1 % in premarket on Friday after raising questions about its top profit margin in the industry, the company lowered prices for its electric vehicles in Europe, Israel, and Singapore, expanding a worldwide discount push it launched in China in January.
Despite giving discounts in the United States, China, Japan, Australia, and South Korea in an effort to increase demand, Tesla said last week that first-quarter deliveries were only up 4% from the previous quarter.
Days after revealing the unimpressive delivery figures, Tesla announced the price decrease of its fifth car this year on the U.S. market as Washington gets ready to enact stricter regulations that would restrict EV tax credits.
Due to logistical challenges and declining demand, the most valuable carmaker in the world failed to meet CEO Elon Musk’s delivery objective of 50% growth in 2022 and instead achieved a 40% rise.
Due to a scaling up and increase in its manufacturing capacity, Tesla said on Friday that it has lowered pricing in various European countries, including Germany and France.
Tesla has reduced the cost of its Model 3 and Model Y vehicles in Germany by between 4.5% and 9.8%, according to information posted on its website on Friday. This is the company’s second price cut of the year following a 1-17% decrease in January.
According to its local website, Tesla reduced the cost of its Model 3 and Model Y vehicles in Singapore by 4.3% to 5%.
Following a preliminary wave of global price reductions in January, Tesla likewise reduced pricing in Israel, with the base rear-wheel drive Model 3’s price falling by 25%.
According to Musk, Tesla will concentrate on lowering prices to boost demand and that it has success igniting orders with January’s cuts.
Since the beginning of the year, Tesla has reduced the cost of its basic Model 3 by a total of 11% in the United States, as well as its base Model Y by 20%. Next Monday, Tesla releases its first-quarter financial results.
Tesla will miss the Shanghai Auto Show
According to plans released by the event’s organizers, Tesla won’t have a stand at the biggest annual autoshow in China, which will take place in Shanghai the following week.
Auto Shanghai will be held in the financial center from April 18 to 27. The biggest car exhibition in Asia will include the newest models and innovations from manufacturers including BYD and Volkswagen.
The electric car manufacturer Tesla, which has a sizable facility in Shanghai, has previously visited the expo. A disgruntled client protested the company’s treatment of her complaints about the brakes of a Tesla that was on exhibit in 2021, climbing on top of the vehicle to make headlines from the company’s booth at the auto show.
