Tesla cuts prices by up to a fifth in US and Europe as EV price war starts

Price of cheapest Model 3 saloon car dropped by 5,500 to 42,990 to combat slowing demand as carmaker shares drop

Tesla has cut the prices of its cars in the US and Europe by up to a fifth as it contends with slowing demand and increased competition.

The US carmaker expanded its sales by 40% during 2022 to 1.3m, making it the world's largest manufacturer of pure battery electric cars, ahead of China's BYD. However, investors have started to worry that sales growth will be limited by economic slowdowns in some of its key markets.