Boosting Affordability: Tesla Slashes Model 3 and Model Y Prices in Response to Declining Deliveries in the United States

Tesla has reduced the prices of certain versions of the Model 3 and Model Y in the United States. This decision follows lower-than-expected third-quarter deliveries by the company.

According to Tesla’s website, the starting price for the Model 3 is now $38,990, down from $40,240. The long-range Model 3 has been reduced from $47,240 to $45,990. The Model 3 Performance is now priced at $50,990, down from $53,240.

Furthermore, the Model Y Performance sports utility vehicle is now available for $52,490, a decrease from its previous price of $54,490.

Since the end of last year, Tesla has been gradually reducing the prices of its vehicles worldwide in order to boost demand. This move comes as concerns over declining consumer spending in major markets like the United States and China have emerged, along with increased competition in the electric vehicle sector.

Tesla frequently adjusts the prices of its cars, particularly in its largest markets, the United States and China.

However, these recent price cuts come just days after Tesla reported third-quarter deliveries of 435,059 vehicles, falling short of analyst expectations and marking a decrease from the previous quarter. Tesla attributed this decline to factory upgrades that resulted in downtime at manufacturing sites.

Elon Musk, CEO of Tesla, has been open about the company’s goal of prioritizing higher volume over larger profit margins this year.

So far, this strategy has proven successful for Tesla’s stock performance, with shares rising over 100% this year.

Tesla aims to deliver 1.8 million vehicles by the end of this year.