Tesla cuts prices of Model 3, Model Y vehicles in Singapore
TESLA has cut prices of its Model 3 and Model Y vehicles in Singapore between 4.3 per cent and 5 per cent, its website showed on Friday (Apr 14).
The US electric vehicle (EV) maker cut prices on Real-Wheel Drive version of both Model 3 and Model Y by S$4,000, and Dual Motor All-Wheel Drive version of the two models by S$5,000, the website showed.
Tesla has slashed prices for its EVs in Europe and Israel as well, expanding a global discount drive it began in China in January while raising concerns about its industry-leading profit margin.
On Friday, the company said it cut prices in Europe because of a scaling up and improvement in its production capacity. In Germany, Tesla lowered the price of its Model 3 and Model Y vehicles by between 4.5 per cent and 9.8 per cent, its website showed.
Meanwhile, in Israel, the price of the base rear-wheel drive Model 3 was slashed by 25 per cent after an initial round of global price cuts in January.
Tesla cut prices of its vehicles in some markets earlier this year, including in the US and China, to shore up demand, stoking concerns about worsening profitability among investors and analysts.
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Last week, Tesla reported first-quarter deliveries were up just 4 per cent from the previous quarter despite offering discounts in the US, China, Japan, Australia and South Korea aimed at spurring demand.
Days after releasing the disappointing delivery data, it also announced its fifth vehicle price reduction this year in the US market, as Washington prepares to introduce tougher standards that will limit EV tax credits.
In 2022, the world’s most valuable vehicle maker missed chief executive officer Elon Musk’s delivery target of 50 per cent growth. It was instead held to a 40 per cent increase, due to logistical issues and slowing demand.
Musk has said Tesla would focus on bringing prices down to drive demand and that it had seen success in sparking orders with January’s discounts.
In January, the company offered limited-term discounts to buyers in Singapore who agreed to purchase existing inventory of the Model 3 or Model Y. But it did not make a general price cut at the time like it did in South Korea, Japan and Australia. REUTERS
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