Tesla cuts price on all its cars in the US

Automaker Tesla has lowered the price of all models it has in production by $2,000, the manufacturer has announced. Foreman Elon Musk’s company does not say why the price is going down. The price reduction only applies to the US.

The price cut will take effect immediately, Tesla reports. The price reduction is probably due to the increased production, which means that the costs for production per car will probably be lower. In addition, the government cuts tax refunds on Tesla cars in the US, forcing consumers to pay an additional $3750. Nevertheless, analysts see bad signs in it, Reuters reports. They wonder why the price has to come down if demand is still as high and whether Tesla customers are more price sensitive than the company had previously assumed. The Model 3 is available from $44,000.

Tesla has produced 86,555 cars in the last three months of 2018. Most of them, over 61,000, are Model 3s. The rest were Model S and Model X. Over the year, Tesla sold more than 245,000 cars, of which 145,000 were Model 3s. The carmaker wants to grow next year, partly because deliveries of Model 3 in Europe and China start next month.