A day after Elon Musk’s electric vehicle company cut its prices in the US, China and other markets, its shares fell 2.6%.
Tesla launched cheaper variants of its S and X models on Monday with the aim of boosting sales as high borrowing costs make electric cars more difficult to access, Reuters reported.
A day after Elon Musk’s electric vehicle company lowered its prices in the US, China and other markets, prioritizing the flow of sales, its shares fell 2.6%. Other competitors, such as Rivian and Lucid, also suffered stock losses of 3.5% and 5.6%, respectively.
The price of the ‘Standard S’ model, with a autonomy of 515 kilometersis set at $78,490, while the ‘standard X’ model, with a range of 432 kilometers, goes on the market at a price of $88,490.
“The idea is to attract consumers interested in the logo and the experience of the [vehiculo electrico]but might be put off by a high price compared to their competitors,” Susannah Streeter, head of portfolio and markets at financial services firm Hargreaves Lansdown, was quoted as saying by Reuters.
Tesla has been the subject of investigations for failures in the steering control system of its vehicles and had to withdraw 15,869 cars of the S and X models due to a possible defect in the connection of their safety belts.