Tesla has recently made price reductions on its popular Model 3 and Model Y vehicles in the United States. This strategic move aims to stimulate demand following weaker-than-anticipated electric-vehicle deliveries during the third quarter.
Lowered Prices on Model 3
According to the company’s website, Tesla has lowered the price of its rear-wheel-drive Model 3 from $40,240 to $38,990. Additionally, price reductions have been applied to the long-range and performance versions of the Model 3, which are now priced at $45,990 and $50,990 respectively.
Decreased Prices on Model Y
Tesla also adjusted the pricing for its Model Y long-range vehicle, reducing it from $50,490 to $48,490. Similarly, the price of the Model Y performance car has been lowered to $52,490.
Deliveries Falling Short
These price cuts come as a response to Tesla’s reported delivery figure of 435,059 cars during the third quarter, slightly below the consensus estimate of 455,000. The shortfall can be attributed, in part, to temporary plant shutdowns for factory upgrades.
Potential Impact on Margins
Although these price reductions may boost sales, analysts caution that they could put further pressure on margins. Last month, Goldman Sachs analysts warned of potential average selling price declines resulting from price cuts on Tesla’s Model X and Model S vehicles. Notably, Tesla has introduced an updated version of the Model 3 with a higher price point in China and Europe but has not yet done so in North America.