Following declining deliveries, Tesla lowers the cost of the Model 3 and Y.

Following declining deliveries, Tesla lowers the cost of the Model 3 and Y.

1 minute, 18 seconds Read

Will Shanklin

According to CNBC, Tesla is lowering the price of some Model 3 and Model Y vehicles in the US. The automaker’s decision, which represents its second price drop in less than a month, comes after its deliveries fell short of market expectations.

The Model 3 is now priced at$ 38,990, down from$ 40,240, according to Tesla’s website. In the meantime, the Model 3 Long Range is now$ 45,990( down from$ 47,240 ), and the Performance is$ 50,990 instead of$ 53,240. Additionally, the price of the Model Y Performance SUV has decreased by$ 52, 490.

These price reductions pale in comparison to the Model S and Model X EVs’ nearly 20 % price drops that were announced in September. Additionally, they pale in comparison to the March price reductions, which resulted in a$ 10, 000 price drop for the Model X. Late in 2022, Tesla experimented with pricing after cutting costs to address a decline in consumer spending and rising EV competition. The automaker blamed factory upgrades for its third-quarter slump, which resulted in manufacturing downtime. Tesla has reduced the Model 3 and Model Y prices by about 17 percent and 26 %, respectively, since January.

In the near future, CEO Elon Musk has indicated that he is prepared to prioritize volume and market share over profit margins. In July, he stated,” I believe it makes sense to forego margins in favor of producing more vehicles.” The automaker, however, is confident that it will succeed in 2023. According to the most recent earnings call, planned downtimes for factory upgrades led to a sequential decline in volumes. Tesla stated in a statement this week that his 2023 volume target of approximately 1.8 million vehicles has not changed.

See also  On November 30, Tesla starts shipping Cybertrucks.

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