Increased Competition in the Electric Vehicle Market; Tesla Reduces Prices in the U.S. After Germany

American company Tesla, less than a month after reducing the price of its Model Y electric vehicle in Germany, has revealed a new move by temporarily lowering the prices of some of its Model Y vehicles produced in the United States until February 29. According to Reuters, Tesla announced that the prices of the rear-wheel drive Model Y and the high battery range Model Y will now be reduced to $42,990 and $47,990, respectively, reflecting discounts of 2.3% and 2%. While the price of the Model Y Performance, referred to as the sports series, and other Tesla models remain unchanged, the announced reduction applies to deliveries until February 29, with prices expected to increase by $1,000 or more on March 1. Last month, in January, Tesla had warned of 'sales lower than expected' for 2024, as the leading electric vehicle company in the world focuses on producing its next-generation electric vehicle, codenamed 'Redwood.' On the other hand, the arrival of cheaper electric vehicles, such as the BYD car from China, opens a new round of competition for Tesla. BYD's sales in the last quarter of last year surpassed Tesla, making it the top electric vehicle manufacturer in the world. Previously, with the increasing competition among electric vehicle manufacturers in global markets, American company Tesla had decided to offer various incentive programs in different countries to attract more buyers. Tesla announced that buyers of Model 3 and Model Y will receive a $500 incentive, and this is not the only benefit, as they can also enjoy Tesla's fully autonomous driving feature for three months. A court in the U.S. annulled a $55 billion bonus for Tesla's board to Elon Musk. A complaint by a U.S. government entity against Elon Musk's company for neglecting racial discrimination. Electric vehicle company Lucid opened its first international branch in Saudi Arabia. Competition with Chinese electric vehicles; Western automakers are reducing production costs. Competition among electric vehicle manufacturers; Tesla is offering more incentives to buyers.