Tesla Inc. has lowered its electric car prices by as much as 6 percent in North America after a downturn in the region's vehicle demand during weeks of lockout, which authorities have now begun to loosen.
The company also disclosed that its fast-charging Supercharger service would no longer be free to buyers of the Model S sedans and Model X SUV. Tesla has given the two expensive models the largest price mark-down of $5,000 from their original price.
Auto retail revenues in the United States possibly halved last month compared to a year ago, based on J.D. Power figures. The company's revenues for the current month are likely to get a boost as a result of pent-up demand and the discounts that most auto manufacturers offer, the analytics company stated.
Tesla is also reportedly trimming down its electric vehicle prices in China, Reuters and Electrek reported. The company, based on reports by the two publications, has decided it was best to slash its price offerings after an industry-wide slump in demand triggered by the ongoing global health crisis.
Other car makers like Ford, GM, and Fiat Chrysler are offering zero percent financing and deferred payment options for new purchases. The deferred payments offer up to 3 months in an attempt to entice buyers back through dealerships.
Tesla's Model S Long Range Plus electric vehicle now sells from $79,990 to $74,990, while the Performance model is now listed at $94,990. The Model X Long Range Plus model now sells for $79,990, which is also $5,000 cheaper compared to its previous price. The Model 3 was given a $2,000 discount, cutting its price down from $39,990 to $37,990.
A Weibo post from the carmaker's official account has confirmed the company will also cut prices of the Model S and X versions sold in China by around 4 percent. However, the Chinese market price of the Tesla Model 3, which China manufactures locally in the country, will not be trimmed down as part of the new adjusted rates.
The manufacturing sector in the US started to operate again earlier this month with suppliers preparing to support an auto market that employs almost one million people. American auto makers are seeking for ways to revive profits after the reopening of factories.
The company was briefly forced to suspend its operations at its Fremont, California facility due to government's stay-home orders. Tesla resumed output activity after resolving a dispute on safety measures with county officials.