🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Tesla amps up discounts on U.S. Model 3 inventory

Published 01/06/2023, 14:24
© Reuters.
TSLA
-

In the face of economic uncertainty, increased competition, and the impending redesign of its flagship model, Tesla Inc (NASDAQ:TSLA) has significantly boosted discounts on select already made new Model 3 electric cars. Additional discounts are also being extended to the Model Y and other vehicles in its U.S. inventory, aimed at enticing potential buyers.

In California, Tesla's website reveals that a Model 3 variant available in their inventory is currently priced at $42,060. This represents a discount of $2,680 compared to the price of newly ordered cars. It's worth noting that this discount is now double the $1,300 reduction offered just under two weeks ago.

Furthermore, Tesla has reintroduced discounts on certain Model Y vehicles, with nearly $600 off each. The electric automaker is also providing more substantial discounts of $6,330 and $5,000 on selected higher-priced Model X and Model S vehicles, respectively.

Analysts suggest that Tesla, in response to economic challenges, increasing competition, and ramped-up production, has taken a proactive approach by significantly reducing vehicle prices in various countries. Additionally, Tesla has adopted a strategy commonly used by traditional automakers: offering incentives to sell existing inventory.

Meanwhile, Tesla is gearing up for the launch of an upgraded edition of its Model 3 in the United States later this year. Also, they have begun delivering certain Model Y vehicles equipped with new hardware for their Autopilot system, enhancing their partially automated driving capabilities.

In a recent shareholder meeting, Tesla CEO Elon Musk suggested that the company would give advertising a shot for the first time. Analysts believe this move is aimed at boosting demand for Tesla's offerings. However, Musk also warned shareholders that Tesla won't be immune to the tough global economy, which he predicts will make the next year a challenging one.

Shares of TSLA are down 0.75% in pre-market trading on Thursday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.