Tesla Inc has reduced the prices of its Model 3 & Model Y prices, according to its website. The prices have been lowered by 4.3% to 5%, with the Rear-Wheel Drive versions of both models seeing a reduction of S$4,000 ($3,020) and the Dual Motor All-Wheel Drive versions being lowered by S$5,000.
This move follows Tesla’s strategy of cutting prices in several markets, including the United States and China, in an effort to boost demand. However, this has raised concerns among investors and analysts about the potential impact on the company’s profitability.
In January, Tesla had previously offered limited-term discounts to buyers in Singapore who agreed to purchase existing inventory of the Model 3 or Model Y. However, this is the first general price reduction for the Singapore market, unlike in South Korea, Japan, and Australia where similar price cuts have been implemented.
The price cuts come at a time when Washington is set to introduce tougher standards that will limit electric vehicle tax credits, and Tesla’s recent announcement of its fifth vehicle price reduction in the US market this year. The company continues to navigate a competitive landscape while aiming to maintain its market share and meet regulatory requirements.