Auto company Tesla cut the prices of some versions of its Model 3 and Model Y vehicles after reports that third-quarter deliveries failed to meet market expectations.
According to CNBC, the starting price of the Model 3 went from $40,240 to $38,990, the long-range Model 3 from $47,240 to $45,990, and the Model 3 Performance from $53,240 to $50,990. Similarly, the Model Y Performance dropped from $54,490 to $52,490.
This follows from a trend of global Tesla price cuts that began in the beginning of 2022. In April, Tesla lowered the prices of the base models of the Model S and Model X by $5,000 each. It lowered their prices again on the first of September.
Tesla cuts Model 3 and Model Y prices in the U.S. after car deliveries fall https://t.co/xSnT88AKAo
— CNBC (@CNBC) October 6, 2023
Learn the benefits of becoming a Valuetainment Member and subscribe today!
In the third quarter of 2023, Tesla saw deliveries of 435,059 vehicles compared to Q2 deliveries of 466,140. The company said their Q3 production was also low, at 430,488 compared to 2022 QC production of 479,700. Tesla implied the deliveries had nothing to do with the cuts.
“A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call,” the company said. “Our 2023 volume target of around 1.8 million vehicles remains unchanged.” Musk’s high challenge for his company has so far served him well, with stocks up 100% in 2023.
Nevertheless, market speculators say Tesla failed to meet expectations. Now it has to go into overdrive to deliver a record 476,000 vehicles in these last several weeks of 2023 to meet its 1.8 million goal.
Add comment