Tesla Inc has doubled discounts on some new Model 3 electric cars that have already been manufactured and is also offering discounts on the Model Y and other vehicles in its U.S. inventory. These measures aim to attract buyers amidst economic uncertainty, increasing competition, and the upcoming redesign of its mainstay model.
Tesla’s website now shows a price of $42,060 for a Model 3 variant in inventory in California, which reflects a $2,680 discount compared to newly ordered cars. This discount has doubled from the $1,300 offered less than two weeks ago.
Additionally, Tesla has reintroduced discounts of nearly $600 on some Model Ys. Tesla has offered steeper discounts of $6,330 for higher-priced Model X vehicles and $5,000 for Model S vehicles.
Analysts state that Tesla, faced with economic challenges, rising competition, and expanding production, has aggressively reduced vehicle prices in many countries. Furthermore, the company is resorting to the traditional automakers’ approach of providing incentives to clear out existing inventory.
This year, Tesla is preparing to launch an updated version of its Model 3 electric cars in the United States and has already started shipping some Model Ys with new hardware for its Autopilot partially automated driving system.
In a departure from its previous practices, Tesla CEO Elon Musk announced this month that the company would attempt advertising for the first time, aiming to generate demand. However, Musk also cautioned that Tesla is not immune to the challenges posed by the global economy, which he expects to remain difficult for the next 12 months.
