Tesla Inc. cut prices across its lineup in the US and major European markets in the carmaker’s latest effort to stoke demand after several quarters of disappointing deliveries.
The company lowered the cost of the cheapest Model Y by 20% and lopped as much as $21,000 off its most expensive vehicles in its home market. Tesla also made major reductions in countries including Germany, the UK and France a week after its second round of cuts in China since October.
The drastic changes sent Tesla shares tumbling, as they reflect the conundrum the company faces after coming up well short of its vehicle deliveries target, despite year-end discounts and incentives. To continue growing and fully utilize the plants that it’s opened or expanded in the last year, Tesla appears to be compromising the profit margins that Wall Street celebrated when the company was running up against production constraints.
