Here's why Tesla slashed prices up to 20% in US, Europe

Weeks after Tesla slashes prices for EVs in China, Tesla announced it will cut the price of its best-selling electric vehicle models up to 20 percent in Europe and the United States as well.

According to reports, the move comes after more rivals hit the market resulting in a price war.

This is not the first time the carmaker has cuts its price. Tesla has already lowered prices twice in China in recent months and offered rare promotions in North America late last year.

In 2022, the group delivered a record 1.31 million electric vehicles, a 40 percent year-on-year jump.

But that was still lower than Musk's long-term goal of boosting deliveries by an average of 50 percent a year.

Investors are concerned that sales will slow down due to the economic downturn as well as rising interest rates that make it more expensive to borrow money to buy a car.