Tesla Inc (NASDAQ:TSLA) has cut prices yet again in a bid to claw its way to a 50% growth target this year.
Prices of its Model 3 and Y were slashed in Europe, Israel and Singapore on Friday in the latest round of cuts, which began in China in January.
Drivers can now buy the Tesla cars between 4.5% and 9.8% cheaper in Europe, following cuts of up to 17% in January, with France among countries also offering €5,000 (£4,417) subsidies on top of the now-reduced €44,990 Model 3.
Tesla is aiming to produce 1.8mln cars globally this year in line with its annual 50% growth target, suggesting lower prices could drive demand as production capacity improves.
"Our mission is to accelerate the transition to renewable energy,” Tesla said.
“Our masterplan has set a clear pathway to achieve that mission: the transformation of cost-intensive small-series products to cheaper mass-series vehicles."
However, Elon Musk’s company penned a mere 5% quarter-on-quarter increase to 422,875 deliveries in the three months to March, in spite of the discounts.
This was up 36% when compared to the first quarter of 2022, which Tesla said was largely due to its initial round of price cuts in January.
Slashing prices has “paid major dividends” to Tesla, according to Wedbush analyst Daniel Ives, even leading its Model Y to become the UK’s best seller in March.
Though the initial data seems to point to a second year running of missed targets at Tesla, the company will provide further insight in a trading update on Wednesday, 19 April.