Tesla slashes prices of bestselling models in the key markets.Tesla cuts prices globally by up to 20%

It comes after CEO Elon Musk warned that the prospect of recession and higher interest rates meant it could lower prices to sustain growth at the expense of profit.

Musk acknowledged last year that prices had become "embarrassingly high" and could hurt demand. Shares ended down 0.9% after falling as much as 6.4% on Friday. 

Tesla stock had its worst year since the company's inception due to slowing growth in China and Musk's distraction with Twitter.

The discounts may make EV cars affordable to people who were previously priced out of the market.

The U.S. price cuts on Tesla's global top-sellers the Model 3 sedan and Model Y crossover SUV were between 6% and 20%, with the basic Model Y now costing $52,990, down from $65,990.

Tesla also cut prices for its Model X luxury crossover SUV and Model S sedan in the United States.

In France, customers buying the Model 3 for 44,990 euros will now get a further reduction through a government subsidy of 5,000 euros on an EV scheme with a threshold of 47,000 euros.

Tesla cut prices in China and other Asian markets last week, which analysts had said would boost demand and increase pressure on rivals.

Tesla says it delivered record 1.3 million vehicles in 2022, Recent Tesla buyers complain of missing out.