Tesla cuts prices, needs to sell 476,000 cars by year end
Tesla is whacking prices again after disappointing third-quarter sales.
In the U.S., Tesla reduced the price of all three trim levels of its most affordable vehicle, the Model 3 sedan, according to pricing on its website. Prices for the Model Y were reduced on the mid-level Long Range and top-end Performance trim levels, said Automotive News.
Since CEO Elon Musk declines to advertise to increase volume, he chooses to discount his products to increase sales quickly. To wit: The base Model 3 and Long Range were cut by $1250. The base model now starts at $40,630 with shipping and the Long Range model starts at $47,630. The Model 3 Performance trim level, with a $2250 price cut, starts at $52,630.
Tesla cut the Model Y Long Range by $2000. It now starts at $50,130 with shipping, and the Performance trim level now starts at $54,130.
“A year ago,” Automotive News said, “the Model Y Long Range, which was then the least-expensive trim level, started at $67,440. Also at that time, the crossover did not qualify for the $7500 federal EV tax incentive because Tesla had reached its quota. On January 1 of this year, the Model Y and the Model 3 became newly eligible for a new version of the incentive.”
The base Model Y’s price was unchanged. “Earlier this week, Tesla started selling a new specification of the base Model Y with a reduced price. The least-expensive version of the crossover switched to a single-motor, rear-wheel-drive configuration from dual motors and all-wheel drive. The new starting price of $45,630 with shipping is $3750 lower than the previous base model. Range also fell on the new configuration to 260 miles from 279 miles.”
According to Reuters, “These latest cuts come as the company strives hard to deliver a record 476,000 vehicles in the last three months of 2023 to meet the annual target of handing over 1.8 million vehicles.”
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Tesla may sell a lot of cars but they are not making money. The money goes right into development that is years behind. Just look at the truck and how late it is.
Elon needed to continue selling the expensive S models and upgrade them as they made money. The lower priced models have volume but no extra profit.
This is really going to be tough to get these cars to market and low enough cost while making money. Tough for everyone.
Most EV start ups are losing money per unit sold. Not a formula for success.
This needs to become a campaign issue to set times and regulations to where Americans can afford these when they come down in price and also have the tech and charging in place to make it a viable option.
Do they really have a hope of selling 467,000 cars in three months – at ANY price? That’s seems like an impossibly high bar to clear.
That might be globally, but even then, that’s an uphill battle as even China is cooling down. (Or seemingly cooling down.)
Sounds a lot like the scene in “Gung Ho”
What a fantastic, yet underrated movie!
They are running out of people in my neighborhood to con into buying one of these things. I have watched my neighbor across the street from me have his vehicle repaired twice by Tesla in the few months he has owned it.
Wow. $1250.00? Big deal. Looks like chump change to me…
Tesla is not losing money, they are making more per unit then most if not all other EV manufacturers! With the Highland Model 3 and upcoming Juniper Model Y they will make even more due to the one piece Gigapress castings! Ford and GM are losing money on every EV they make just like Tesla did for a long time before sales and economies of scale came into play.
Do you people that comment actually look up facts or just shoot from the hip?
Tesla is selling, without subsidy—as the Chinese makes do—more EVs than anyone else and doing it globally. They are simultaneously expanding offerings into all segment and Musk, like Henry Ford 115 years ago, knows that success relies on profit achieved by volume with low margins. If the U.S. is to have a future as a global automaker it is because of Tesla and Tesla is because of Musk. But I wish he’d stick to technology and stay away from social media.