For those looking to buy Tesla, now may be the time.
According to The Wall Street Journalthe electric car company slashed the prices of several models sold in the US by percentages, including a 14% discount on the Model 3 sedan and nearly 20% off the standard Crossover Model Y.
The company’s share price fell more than 3% on the news on Friday, the outlet added.
Tesla has also had a tough year. Since January 2022, the stock is down 65%, a low for the company. Question slowed downand many, including investors and analysts, felt that CEO Elon Musk should not spend so much time and money on Twitter and instead focus on Tesla.
Related: Tesla investors complain that Elon Musk spends too much time on Twitter — On Twitter
“By lowering the prices of its current models, Tesla is signaling its willingness to forgo some profit to increase sales volume,” The New York Times wrote.
Some of the cuts, depending on how many add-ons Tesla customers include with their purchases, may allow customers to qualify for a tax credit under the Inflation Reduction Act, the WSJ noted.
The credit gives buyers $7,500 for electric car purchases under $55,000.
Similar price reductions were also implemented in Europe. Prices were also reduced for Teslas sold in China.
Daniel Ives, an analyst at Wedbush Securities who follows the company, said it’s “no secret that demand for Tesla is beginning to show cracks in this global slowdown,” in a text to australiabusinessblog.com.
He called the cuts “dazzling”, because of the amount.
Although the initial reaction to these cuts will of course be negative [Wall Street] at first we believe this was the right strategic poker move by Musk & Co. at the right time,” added Ives.