Technology

Tesla cuts Model 3 and Model Y prices in the U.S. after car deliveries fall

In this article

A Tesla dealership in Colma, California, U.S., on Wednesday, Jan. 26, 2022.
David Paul Morris | Bloomberg | Getty Images

Tesla cut the price of some Model 3 and Model Y versions in the U.S. after the company reported third-quarter deliveries that missed market expectations.

The starting price for the Model 3 is listed at $38,990 on Tesla’s website, down from $40,240 previously. The long range Model 3 fell from $47,240 to $45,990. And the Model 3 Performance fell to $50,990 from $53,240.

Tesla’s Model Y Performance sports utility vehicle now starts at $52,490, down from a previous price of $54,490.

Beginning at the end of last year, Tesla began cutting the prices of its cars across the world in a bid to stoke demand amid concerns over slowing consumer spending in markets like the U.S. and China and as competition in the electric vehicle space ramped up.

Tesla regularly tinkers with the price of its cars, especially in its biggest markets of the U.S. and China.

But the latest round of price cuts comes just days after Tesla reported third-quarter deliveries of 435,059 vehicles, missing analyst expectations and marking a decline from the previous quarter.

Tesla put the fall down to factory upgrades which caused manufacturing sites to have downtime.

Elon Musk, CEO of Tesla, has made no secret of the carmaker’s desire to chase higher volume over bigger margins this year.

So far, that has paid dividends for the stock with shares up over 100% this year.

Tesla is still looking to deliver 1.8 million vehicles this year.

Articles You May Like

Donald Trump’s victory certified by defeated rival Kamala Harris
We’re trimming our stake in a beaten-up stock that has taken off in 2025
Creatives having to be even more creative as National Theatre overhauls how it stages productions
No matter who wins the natty, it will have been a long time coming
Parliament urged to begin criminal record checks on new MPs