Tesla Inc. has recently implemented significant discounts on its Model 3 electric cars in its U.S. inventory in an effort to attract buyers amidst economic uncertainty, heightened competition, and the imminent redesign of its flagship model. The company has doubled the discounts on certain pre-made Model 3 vehicles and extended discounts to other models, including the Model Y.
In the state of California, for example, a specific Model 3 variant in inventory is now priced at $42,060, reflecting a discount of $2,680 compared to the price of newly ordered cars. This represents a doubling of the discount previously offered, which was $1,300 less than two weeks ago. Additionally, Tesla has reintroduced discounts of nearly $600 on select Model Ys. The company has gone further by providing steeper discounts of $6,330 and $5,000 on certain higher-priced Model X and Model S vehicles, respectively.
Industry analysts suggest that these price reductions and incentives are a response to economic headwinds, increasing competition, and the need to manage growing production. Throughout this year, Tesla has been proactive in reducing vehicle prices in various countries, resorting to the use of incentives commonly employed by traditional automakers to clear inventory.
Notably, Tesla is gearing up to launch an upgraded version of its Model 3 in the United States later this year. The company has already commenced shipping some Model Ys equipped with new hardware for its Autopilot partially automated driving system. Moreover, Tesla’s CEO, Elon Musk, recently shared with shareholders that the company intends to explore advertising for the first time, a move anticipated to stimulate demand. Musk, however, cautioned that Tesla is not immune to the challenges posed by the global economy, which he believes will remain arduous over the next 12 months.
