(Reuters) – Tesla Inc has temporarily cut prices on some of its Model Y vehicles in the United States until Feb. 29, less than a month after the automaker cut Model Y prices in Germany.
Tesla (NASDAQ:) has cut the prices of its rear-wheel drive Model Y and Model Y Long Range by $1,000 to $42,990 and $47,990, respectively, representing 2.3% and 2% discounts from previous prices.
According to the site, prices for the Model Y Performance variant and other models remained unchanged.
Prices for the new rear-wheel drive Model Y and Long Range models will be reduced for deliveries through Feb. 29, Tesla said in a notice on its website, adding that the price will increase by $1,000 or more on March 1.
Tesla cut prices on its Model Y cars in Germany last month after much of the vehicle’s production at its Berlin plant was suspended due to component shortages after the Red Sea attacks caused delivery disruptions.
Tesla also warned in January of “noticeably lower” sales growth this year as it focuses on production of its next-generation electric vehicle, codenamed “Redwood (NYSE:).” The latest price cut is expected to further weigh on Tesla’s profits, which were already hit by a price war that began more than a year ago.
The latest price cut comes as Tesla braces for cooling demand and growing competition from a growing number of low-cost electric vehicles, such as those made by China’s BYD (SZ:), which overtook Tesla as the world’s largest electric vehicle maker in the final quarter of 2023. .
In another sign of declining demand for electric vehicles, electric vehicle rental company Hertz Global Holdings (OTC:) said in January that it was selling about 20,000 electric vehicles, including Teslas, from its U.S. fleet and was opting for gasoline-powered vehicles due to higher costs associated with collisions and accidents. damage to electric vehicles.
Tesla shares are down 22.1% this year.