Tesla slashes vehicle prices

Tesla took steps to stem its slowing vehicle sales by slashing prices of its vehicles by nearly 20% in the United States. The cut makes more versions eligible for an electric-vehicle tax credit available through March.

By

National News

January 13, 2023 - 2:18 PM

A Tesla sedan gets a charge at a Tesla Supercharging station in Cranberry, Pa, Wednesday, Nov. 16, 2022. (AP Photo/Gene J. Puskar, File)

DETROIT (AP) — With its sales slowing and its stock price tumbling, Tesla Inc. slashed prices dramatically Friday on several versions of its electric vehicles, making some of its models eligible for a new federal tax credit that could help spur buyer interest.

The company dropped prices nearly 20% in the United States on some versions of the Model Y SUV, its top seller. That cut will make more versions of the Model Y eligible for a $7,500 electric-vehicle tax credit that will be available through March. Tesla also reduced the base price of the Model 3, its least expensive model, by about 6%.

Far from pleasing investors, the sharp price cuts sent Tesla shares down nearly 3% in midday trading Friday. Since the start of last year, the stock has plummeted more than 65%. Many investors fear that Tesla’s sales slowdown will persist and have grown concerned about the erratic behavior of CEO Elon Musk and the distractions caused by his $44 billion purchase of Twitter.

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