Tesla has announced a temporary price cut of $1,000 for the rear-wheel drive and long-range versions of the Model Y in the US until the end of the month. This is not the first time that Tesla has reduced prices due to lower demand for electric vehicles. The discounted prices are $42,990 and $47,990, down from the original price but do not include the “performance” version. However, this is only a short-term offer as prices will go back up on March 1st.
Despite being Tesla’s most popular model and accounting for a third of all electric vehicle sales in the US last year, the automaker is facing competition from other electric vehicle manufacturers, particularly from Chinese automaker BYD which recently overtook Tesla as the world’s top seller of electric vehicles. To address this challenge, Tesla is preparing to ramp up production of a more affordable mass-market electric vehicle code-named “Redwood,” after Elon Musk warned investors of a potential sales slowdown.
Tesla workers have been informed that they can expect a difficult version of the company’s well-known “production hell” as they work towards making their cars cheaper and facing competitive threats. 2022 is pivotal for Tesla as it navigates these challenges and works towards maintaining its position as a leader in the electric vehicle market.