The EV maker Tesla Inc (NASDAQ:TSLA) lowered the prices of Model Y standard vehicles to $39,990 (down 4.8%) and Model 3 to $36,990 (down 2.6%). However, it increased the prices of performance versions of these models to $60,900 (up 1.7%) and $55,990 (up 1.8%) respectively in the US. The company also incentivized customers in Japan by lowering its EV prices. Customers in the US can avail of additional incentives offered by the states to promote the use of electric vehicles.
Customers can find the discounted prices along with incentives offered by the states and gas savings on the Tesla website. The company also provides a comparison of operating costs of EVs versus combustion engine vehicles.
Price cut a respite to the US population
CEO of Tesla, Elon Musk always worried about the high prices of its EVs. The price cuts offer a respite to the US population, who dreams of buying a standard Tesla car at an affordable price without compromising on quality and performance. Elon is well known for offering price cuts in the past and incentivize purchasers for boosting sales in the quarters. An analyst of Credit Suisse, Dan Levy said the price cuts of Tesla EVs are to boost the volumes.
Improvement in volumes in H2 2021
While speaking at a battery event, Elon said the company is working on introducing an EV at sub $30,000 at $25,000. In 2020, the company delivered half a million EVs. The company expects to improve deliveries in H2 2021.
Tesla leads EV registrations in the US
Tesla along with General Motors Company (NYSE:GM) is leading the EV registrations in the US. In 2020, the registration of electric vehicles in the US clinched a market share of 1.8% showing improved interest from customers for EVs. According to a report released by IHS Markit Ltd, EV registrations in the US in December 2020 clocked a market share of 2.5%. Tesla is a prominent beneficiary of increased EV registrations.
The registrations of Tesla Model Y and Model 3 in the US are reported at 71,344, and 95,135 vehicles respectively. GM is closely following Tesla to account for the top 5 EV registrations in the US with 19,664 registrations for its Chevy Bolt compact.