--- title: What to know about Tesla slashing prices - The Hustle description: Lower prices, happy customers… mostly. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1962176838-HS-News-Brief_2023-01-16T235514.150Z.webp --- # What to know about Tesla slashing prices ![Jacob Cohen](https://thehustle.co/wp-content/uploads/2021/01/IMG_5670-1-modified-768x768.png?width=48&height=48&name=IMG_5670-1-modified-768x768.png) [Jacob Cohen](https://hs-sbup.thehustle.co/author/jacob-cohen) [Jacob Cohen Twitter profile ](https://twitter.com/ImJacobCohen) Published: January 17, 2023 Updated: October 11, 2023 Last week, Tesla [slashed](https://electrek.co/2023/01/12/amid-demand-concerns-tesla-cuts-prices-by-up-to-13k-in-us/) prices on its lineup by up to 20%. The changes mean some models now qualify for an *additional* $7.5k federal EV tax credit through mid-March. ![What to know about Tesla slashing prices](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/1962176838-HS-News-Brief_2023-01-16T235514.150Z.webp?width=595&height=400&name=1962176838-HS-News-Brief_2023-01-16T235514.150Z.webp) A Tesla spokesperson [attributed the drop](https://electrek.co/2023/01/13/tesla-claims-massive-price-cuts-due-to-partial-normalization-cost-inflation/) to “a partial normalization of cost inflation,” and comes as Tesla faces an [increasingly](https://thehustle.co/12-1-tesla-marketshare/) competitive market, a [challenging](https://thehustle.co/12162022-tesla-stock/) demand environment, and a 65% stock dip in 2022. Not everyone was happy about the cuts — some Tesla customers [felt duped](https://mobile.twitter.com/MarianneSimmons/status/1613754758598205442) after buying one without knowing a discount would go live soon after. But for prospective customers, a discounted Tesla is exciting news. How long Tesla’s discounts will last, however, remains to be seen. Lower prices will drive demand, though profit margins will take a hit. - *Bloomberg*’s Kevin Tynan [calculated](https://www.bloomberg.com/news/articles/2023-01-13/tesla-slashes-prices-in-us-to-qualify-models-for-tax-credit?sref=3Ac2yX40) that, assuming 1.8m vehicle sales in 2023, lost revenue for the year “would exceed $11B.” **Big picture: **EV’s surpassed [10%](https://www.wsj.com/articles/evs-made-up-10-of-all-new-cars-sold-last-year-11673818385?mod=hp_lead_pos2) of vehicles sold globally in 2022 — ~7.8m cars — up 68% from 2021. Expect Tesla to work hard to maintain market share as the world goes electric. 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