Tesla’s website revealed on Thursday that the company has reduced the prices of its best-selling electric vehicles in the United States and Germany as part of a new policy of aggressive discounting in response to missing fourth-quarter delivery estimates set by Wall Street.
According to a Reuters calculation, the price reductions for the Model 3 and Model Y in the U.S. amounted to discounts of between 6% and 20%.
In Germany, Tesla cut prices on the Model 3 sedan and Model Y crossover from 1% to nearly 17%, depending on configuration.
Last week, Tesla announced price reductions in China and other Asian regions. Combined with the price cuts announced in October and the new incentives, the cost of a Model 3 or Model Y in China has dropped by 13% to 24% since September.
The move represented a U-turn in Tesla’s main strategy it had taken through much of 2022, when demand was high and average sale prices for its electric vehicles were heading higher.
Tesla has also cut prices in South Korea, Japan, Australia and Singapore.
Experts forecast that the price cuts in China would increase demand and put further pressure on its rivals there, particularly BYD, to lower prices as well, creating a pricing war in the largest single market for electric vehicles.
