Tesla reduced the prices of cars in the US

Luxury electric car company Tesla Inc. reduced the prices of several versions of its electric vehicles in the US on Friday. Tesla has taken this decision to reduce the prices of electric vehicles due to the ever-decreasing sales of its vehicles and the fall in the company's stock.
According to a Reuters report, after cutting prices of its vehicles in Asia last week, Tesla has now reduced prices in Europe, the Middle East and Africa apart from the US. That makes some Tesla models eligible for new federal tax credits, which should help attract buyer interest.
Tesla has slashed the prices of some versions of its top-seller Model Y SUV by up to 20%. This deduction makes multiple versions of the Model Y eligible for a US electric vehicle tax credit of $7,500 (Rs 6.09 lakh) available from March. This is the reason why Tesla has also reduced the base price of its least expensive model i.e. Model-3 by about 6%.
After Tesla's price cut, its Model Y Performance model is now available at a starting price of just $57,000 i.e. Rs 46.33 lakh, which earlier cost around $70,000 (Rs 56.89 lakh). At the same time, the price of Tesla's least expensive vehicle i.e. Model-3 has been reduced from $ 47 thousand (Rs 38.20 lakh) to $ 44 thousand (Rs 35.76 lakh).
Due to Tesla's decision to reduce the prices of electric vehicles, the company's shares saw a decline of about 4% on Friday. The company's stock has fallen more than 65% since the beginning of 2022.
Many investors fear that Tesla's sales slump will continue. Not only this, but investors are also worried about the erratic behaviour of CEO Elon Musk and the mess caused by buying Twitter for $ 44 billion.
According to analysts, Tesla is prioritizing sales volume over price. This is a strategy that can affect the profit margin of the company. However, so far no statement has come from Tesla and Musk on the reasons for the price cut.