Key Points
- When Tesla published its third-quarter deliveries, which fell short of market estimates, the firm lowered the cost of select Model 3 and Model Y variants in the United States.
- The beginning price for the Model 3 is now $38,990 on Tesla’s website, down from the prior price of $40,240.
- A few days after reporting third-quarter deliveries of 435,059 vehicles, which were fewer than anticipated by analysts and down from the prior quarter, Tesla announced its most recent round of price reductions.
After the firm revealed that its third-quarter deliveries fell short of market estimates, Tesla announced that some Model 3 and Model Y models will now be cheaper in the United States.
The beginning price for the Model 3 has been reduced from its prior price of $40,240 to $38,990 on Tesla’s website. The Long Range Model 3 now has a starting price of $45,990 instead of $47,240, and the Performance Model 3 is now $50,990 rather than $53,240.
The starting price of the Tesla Model Y Performance sports utility vehicle has decreased from $54,490 to $52,490.
Tesla started lowering customer costs in countries like the United States and China during the end of last year, raising competition in the market for electric vehicles while attempting to increase demand globally by dropping automobile prices.
Tesla regularly modifies the cost of its vehicles, especially in its two biggest markets, the US and China.
However, Tesla’s most recent wave of pricing reductions comes just a few days after the company reported third-quarter deliveries of 435,059 vehicles, which fell short of analysts’ projections and decreased from the prior quarter.
Tesla blamed the reduction to factory upgrades that caused production lines to be idle.
Tesla CEO Elon Musk, who has so far generated profits with more than 100% gains for stockholders, is open about his goal to prioritize volume over margins this year.
This year, Tesla hopes to deliver 1.8 million cars.