Tesla cutting prices to boost sales for 2023

In a bid to boost its sales figure for 2023, Tesla has been actively cutting prices around the globe.

The price cuts and discounts which started in Asia have now been expanded to the US and Europe with the target of keeping the demands high despite the worsening global economy. It's an understandable strategy and an effective one too as they've reported certain improvements.

Tesla-made cars in China saw a price cut for all variants of the Model 3 and Model Y between 6%-13.5% last January following a weak H2 2022 performance in terms of sales. The discount strategy saw an 18% increase in January followed by a further 12.6% sales increase in February.

The Japanese market saw a 10% reduction in prices for the same models (Model 3 & Model Y). It's a slightly different case for South Korea where the discounts are based on the models on sale in their market, but the biggest reductions can be seen in the US and Europe between 6% to 20%.

France gets an added bonus via a government subsidy that cuts a further 5,000 euros from the discounted price tag. With the brand officially entering the Malaysian market soon, we can expect some sort of added benefits to getting the sales up and running here in the country.

The Malaysian government will hopefully introduce more incentives in the near future to push the sales of EVs here in the country to promote a much bigger adoption of electrification. We are already seeing that now with more affordable brands entering the market, but with a brand presence as strong as Tesla, the pricing should be a key determining factor for its success.