Tesla Doubles Maximum Discount in US... Stock Price Falling Over 9%

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. electric vehicle company Tesla, struggling with a declining stock price, has doubled the discount on some models in the U.S. market. Tesla's policy change, after maintaining a 'no discount' policy for years, is raising concerns that it signals a weakening demand.

According to the Wall Street Journal (WSJ) and others on the 22nd (local time), Tesla announced on its website that from the 21st to the 31st, customers receiving new electric sedan Model 3 and sport utility vehicle (SUV) Model Y will be offered a $7,500 (approximately 9.62 million KRW) discount, along with 10,000 miles of free charging at Supercharger fast electric charging stations.

This is interpreted as a business strategy to boost sales in the North American region. The $7,500 discount is twice the amount compared to early this month. It is also the same amount as the maximum tax credit under the U.S. Inflation Reduction Act (IRA) for North American-made electric vehicles. This policy targets those who delay new car purchases until after the Inflation Reduction Act to receive subsidies. Additionally, Tesla will provide 10,000 miles of free charging credits to buyers of Model S and Model X.

However, concerns are growing that the discount itself on popular models Model 3 and Model Y is a sign of Tesla's weak demand. Earlier, Tesla lowered electric vehicle prices in China in October amid intensified competition. It also decided to offer discounts in Canada, Mexico, and other countries.

Tesla's stock price continues to decline as the expanded discount news is interpreted as a struggle due to weak demand. As of this afternoon in the New York stock market, Tesla's stock is trading at around $124.16, down 9.75% from the previous session. The decline in Tesla's stock price this year far exceeds 60%.

This content was produced with the assistance of AI translation services.