Tesla (NASDAQ: TSLA) stock saw a modest rise in value during the pre-market trading Monday. This comes after the EV giant implemented a temporary price cut on select Model Y cars in the US.
Tesla (TSLA) has decided to lower the prices of some of its Model Y cars in the United States. This change will last until February 29. This decision came shortly after Tesla reduced the prices of Model Y cars in Germany.
The price cuts affect two versions of the Model Y: the rear-wheel drive and the Long Range. The rear-wheel drive model is now priced at $42,990, while the Long-Range version is $47,990. These new prices are $1,000 lower than before, representing discounts of 2.3% and 2%, respectively. However, the prices for the Model Y Performance variant and other models remain the same.
On its website, Tesla announced that it will reduce prices for the New Model Y rear-wheel drive and Long-Range models for deliveries until February 29, but it will increase them by $1,000 or more from March 1 onwards.
Tesla implemented this price cut following a similar move in Germany last month. The company took this action after suspending production at its Berlin factory due to supply chain disruptions caused by attacks in the Red Sea.
These changes in pricing come as Tesla anticipates lower demand and faces increasing competition from other electric vehicle manufacturers, particularly those offering cheaper options. Chinese company BYD has surpassed Tesla as the world’s top electric vehicle maker in the last quarter of 2023.
In January, Tesla hinted at slower sales growth this year, citing a focus on its next-generation electric vehicle, codenamed “Redwood.”
Tesla (NASDAQ: TSLA) Stock Performance
TSLA stock gained 2.12% to close at $193.57 on Friday. The traders had exchanged hands with 84,209,001 (84.20 million) shares compared to the average daily trading volume of 116.74 million.