Elon Musk’s Tesla has cut US prices of its Model 3 compact sedan and the Model Y SUV, ratcheting up its price battle just days after the third-quarter deliveries of the world’s most useful automaker missed market expectations.
The newest cuts come as Musk’s company strives hard to deliver a record 476,000 vehicles within the last three months of 2023 to satisfy the annual goal of handing over 1.8 million vehicles.
The value cuts by Tesla — now by about 2.7% to 4.2% — began in January to support sales in an uncertain economy and fend off competition from automakers reminiscent of Ford and China’s BYD.
Tesla shares edged up 0.2% to shut at $260.53 amid a broad rise in stocks.
The usual Model 3 sedan is now $1,250 cheaper at $38,990, while the Model Y long-range variant costs $2,000 less at $48,490, the automaker’s website showed.
Tesla also cut prices for its higher-priced variants of the 2 models.
Overall, the usual Model 3’s prices have come down by about 17% because the start of the 12 months, while the Model Y long-range variant has seen a drop of over 26%.
The value cuts may also add pressure on the “Detroit Three” as they cope with an unprecedented strike by autoworkers’ union.
Any recent contract with the union is predicted to drive a surge in costs, benefiting non-unionized automakers reminiscent of Tesla and Japan’s Toyota.
Tesla is ready to report third-quarter earnings on Oct. 18.
Analysts polled by Visible Alpha expect the corporate to post automotive gross margins of 19.1% for the quarter, which is a big drop from a record margin of greater than 32% in the primary quarter last 12 months.
Elon Musk’s Tesla has cut US prices of its Model 3 compact sedan and the Model Y SUV, ratcheting up its price battle just days after the third-quarter deliveries of the world’s most useful automaker missed market expectations.
The newest cuts come as Musk’s company strives hard to deliver a record 476,000 vehicles within the last three months of 2023 to satisfy the annual goal of handing over 1.8 million vehicles.
The value cuts by Tesla — now by about 2.7% to 4.2% — began in January to support sales in an uncertain economy and fend off competition from automakers reminiscent of Ford and China’s BYD.
Tesla shares edged up 0.2% to shut at $260.53 amid a broad rise in stocks.
The usual Model 3 sedan is now $1,250 cheaper at $38,990, while the Model Y long-range variant costs $2,000 less at $48,490, the automaker’s website showed.
Tesla also cut prices for its higher-priced variants of the 2 models.
Overall, the usual Model 3’s prices have come down by about 17% because the start of the 12 months, while the Model Y long-range variant has seen a drop of over 26%.
The value cuts may also add pressure on the “Detroit Three” as they cope with an unprecedented strike by autoworkers’ union.
Any recent contract with the union is predicted to drive a surge in costs, benefiting non-unionized automakers reminiscent of Tesla and Japan’s Toyota.
Tesla is ready to report third-quarter earnings on Oct. 18.
Analysts polled by Visible Alpha expect the corporate to post automotive gross margins of 19.1% for the quarter, which is a big drop from a record margin of greater than 32% in the primary quarter last 12 months.
