Tesla's decision to lower the prices of its electric vehicles in North America in May 2020 led to a significant increase in the number of cars sold in the US in the following months. This is because price sensitivity is a major factor in the adoption of electric vehicles, and by reducing costs, Tesla was able to increase its product availability.
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When Tesla decided to lower the price of all its North American electric vehicles in May 2020, the market initially saw this as bad news. Traditionally, automakers use discounts as incentives to increase sales during periods of low demand. However, because Tesla is a tech and automotive company, Tesla wanted to reduce costs to increase its product availability. Because price sensitivity is a huge factor to EV adoption, lower prices dramatically increased the amount of cars Tesla sold in the US in the following months.