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Tesla cuts prices for its cars to increase demand

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Posted at 5:39 PM, Jan 16, 2023

Tesla began cutting prices of its new electric vehicles to increasedemand as more competition joins the electric vehicle market.

Tesla lowered prices for the Model 3 and Model Y cars.

The company is making the moves after a vehicle delivery report didn't meet investor expectations for revenue.

Tesla cut prices in key markets like the United States, China and Germany. It was the second time the company cut prices in China in less than3 months.

Prices in China were down 13% to 24% in September.

Price cuts also hit other markets like Japan, South Korea and Australia.

Increased competition in the electric vehicle space has caused Tesla to reevaluation parts of its business. Threats come from electric vehicles that are priced below $50,000. That' is where "Tesla does not yet truly compete," a reportsaid.