Tesla drops prices In North America by up to 6% to boost sales

Date: May 28, 2020

Tesla drops prices In North America by up to 6% to boost sales

With the coronavirus pandemic impacting the automobile sales across the globe, automakers worldwide are rethinking their strategies to survive in this challenging period. Recently, Elon Musk’s Tesla, Inc., has decreased the price of its EVs in North America by up to 6% in a bid to accelerate sales, following a considerable drop in the demand for new cars during lock-down period.

As per reliable reports, auto retail sales in the nation have been halved in April as compared to the previous year. However, the sales are expected to increase in May due to restrained demand and incentives offered by most of the carmakers.

Automakers are looking for new ways to kick-start sales after reopening manufacturing factories earlier this month. Companies such as General Motors, Fiat, and Ford have already announced plans to offer 0% finance rates and deferred payment options for up to three months in an attempt to lure drivers back through the door of dealerships.

On Wednesday, Tesla surprised buyers by showing discounts on numerous models on its website. As per the website, Model S sedan now starts from US$74,990, down from the previous price of US$79,990. The company’s Model X SUVs are valued at USD79, 990, from USD 84,990, and the cheapest Model 3 sedan is USD 2,000 cheaper at USD 37,990.

Previously, Tesla ordered its employees to stop work at its Fremont-based factory because of stay-at-home orders. The company resumed the operation of this factory after resolving a conflict over safety concerns with regional authorities.

According to sources familiar with the matter, the company also will drop prices in China by around 4% for the Model S and Model X. However, the company will not cut prices of locally made Model 3 cars. The company also announced that it will not offer free supercharger quick-charging service for new customers of its Model X SUVs and Model S sedans.

Source Credit - https://business.financialpost.com/transportation/autos/tesla-cuts-prices-by-as-much-as-6-in-north-america-to-boost-demand

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.

Tesla drops prices In North America by up to 6% to boost sales