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By Dana Hull and Ed Ludlow | Bloomberg
Tesla has lowered the prices of its cheaper Model 3 and Y models while increasing the prices of the Performance versions, according to the electric carmaker’s website.
The Model 3 Standard Range Plus is now 2.6% cheaper at $ 36,990 in the United States. The price of the Model Y Standard Range has been reduced by 4.8% to $ 39,990.
Tesla CEO Elon Musk has regularly lamented that Tesla cars are too expensive, and the company has a long history of enacting price cuts and incentives to drive deliveries during critical quarters. At last fall’s “Battery Day” event, Musk said the company was working on a $ 25,000 car.
The Performance variant of Model 3 rose 1.8% to $ 55,990, while the price of the Performance variant of Model Y rose 1.7% to $ 60,990, the website says. Tesla also lowered prices in Japan.
“The adjustments may reflect the mix strategy,” Credit Suisse analyst Dan Levy said in a note to clients. “We believe Tesla’s strategy is to reduce prices (funded by cost cuts) to drive increased volumes.”
Shares were down 1.4% to $ 786.43 at 1:29 p.m. Thursday in New York. As of Wednesday, they had gained 13% this year, while the S&P 500 was up 4.7%.
Tesla delivered nearly half a million vehicles in 2020, but warned that deliveries in 2021 would be weighted towards the second half of the year.
The new prices are before any government incentive or gas savings. Tesla is also announcing lower prices for its cars on its website, which takes into account what it sees as “potential savings” from owning electric vehicles. These include both state and federal incentives or tax savings that discount the purchase price, as well as the lower hypothetical cost of running an electric vehicle compared to a combustion engine car. .
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