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.