Tesla is cutting prices sharply as it moves to increase demand

New competitors are on the way, too. This year, GM is supposed to start making electric versions of its Chevrolet Silverado pickup, Chevrolet Blazer and Equinox.

Tesla was too problem in China, its largest market, where local manufacturer BYD is now the No. 1 electric vehicle brand. Tesla recently cut prices in China and reported a Total global sales for 2022 This was lower than analysts’ expectations.

While Tesla is still hailed for the advanced technologies it packs into its cars and its sleek design, it has been slow to add to its model line. It only offers four cars, and two of the luxury models are out of reach for most average consumers. It last introduced a car in 2020, when the Model Y went into production.

Since 2019, Tesla has promised to introduce a pickup truck called the Cybertruck, but has delayed its production several times. The company now hopes to start making them this year. The Cybertruck has an angular, futuristic design and is expected to be sold as a luxury vehicle, which may limit its appeal. In the past, Mr. Musk has expressed interest in producing an electric car that could sell for around $25,000, but he has not laid out any formal plans.

In December, Tesla began delivering a small number of battery-powered semi-trucks to PepsiCo, its first customer.

“We see demand problems lingering until Tesla can offer low-volume offerings, which may only be in 2025,” Bernstein analyst Tony Sacconaghi said in a report this month.

In lowering the prices of its current models, Tesla indicates that it is willing to give up some profits in order to increase sales volume. The company typically shows gross profit margins of 26 percent — more than double those of some rival automakers — a factor that has driven investors to drive up its stock, making it the most valuable auto company in the world.