Tesla (TSLA) is currently experiencing “unprecedented demand” in the US following the significant price cuts that happened last week.
Many stores are hitting new records and inventories are dwindling.
Last week, Tesla implemented massive price cuts of up to $13,000 on Model 3 and Model Y vehicles in the US.
The automaker tried to claim that the price cuts were due to a “partial normalization of the cost inflation,” but most industry experts agree that Tesla needed the price cuts to create demand.
A week later, Electrek can confirm that the price cuts are working in doing just that.
Sources familiar with the matter told Electrek that many Tesla stores in North America had reached their new record for sales in a single week. One source familiar with Tesla’s sales said that the company is experiencing “unprecedented demand” in North America following the price cuts.
The inventory is decreasing at a record rate in several key US markets. As for new custom orders, Tesla will likely run out of build slots for the North American market in the next few days.
That usually doesn’t happen until much later in a quarter.
On top of the direct price cuts increasing sales, many Tesla models are now eligible to the new $7,500 federal tax credit for electric vehicles in the US. In some cases, this reduces the cost of some Tesla vehicles by as much as 30% compared to last year.
As I stated last week, we knew that the price cuts would work, but we didn’t know to what degree; now it’s good to see that it is creating new record demand in several markets.
We are also now seeing some other automakers reducing prices significantly, like Xpeng today.
It looks like Tesla might have started an EV price war, and I think it is in a position to win it.