Tesla (TSLA) is currently experiencing “unprecedented demand” in the US following the significant price cuts that took place last week.
Many stores are hitting new records and inventories are dwindling.
That’s what the automaker tried to claim the price reductions are due to a “partial normalization of cost inflation”.“ However, most industry experts agree that Tesla needed the price cuts to create demand.
One week later, electr can confirm that the price cuts are doing just that.
Sources familiar with the matter said electr that many Tesla stores in North America had reached their new sales record within a single week. A source familiar with Tesla’s sales said the company is seeing “unprecedented demand” in North America following the price cuts.
Inventories are declining at a record rate in several key US markets. As for new custom orders, Tesla likely won’t have any more build slots available for the North American market for the next few days.
That usually doesn’t happen until much later in a quarter.
In addition to outright price cuts driving sales, many Tesla models are now eligible for the new $7,500 US federal EV tax credit. In some cases, this reduces the cost of some Tesla vehicles by up to 30% compared to last year.
As I said last week, we knew the price cuts would work, but we didn’t know to what extent; Now it’s good to see that it’s creating new record demand in multiple markets.
We are now also seeing some other automakers cutting prices significantly, such as: Xpeng today.
It looks like Tesla has started an EV price war, and I think it’s poised to win it.
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