The electric car maker is reducing prices by thousands of pounds as global downturn threatens sales.
Tesla has cut the price of some of its most popular electric cars by thousands of pounds in Europe and the US, in a bid to boost customer demand.The price cuts are in the range of 10% to 13% in the UK, but run as high as 20% on some US models.However, more than 16,000 customers bought those best-selling models last year, and some were angry that they had paid more.
Ginny Buckley, from the electric vehicle marketplace, Electrifying.com, said the price cuts were still controversial and bound to "send shockwaves" through the industry, because Tesla was making a shift from a premium to a more mainstream product. The electric carmaker has been growing rapidly in recent years, as it moves from being a niche premium brand to a mass market manufacturer.Slowing global growth and higher interest rates, not to mention increasing competition from more established carmakers and from Chinese brands, all threaten its expansion.
James Baggot, editor in chief of Car Dealer Magazine, said the move would have a big impact on used Tesla prices, which he said had already fallen by more than a fifth last year. The dramatic slide in the share price dented Mr Musk's fortune, nudging him off his spot as the world's richest person.
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