As Tesla Inc (NASDAQ:TSLA) faces economic uncertainty and intensifying competition, the company has taken bold measures to spur demand for its vehicles. This includes significant discounts on select new Model 3 electric cars, as well as other vehicles in its U.S. inventory.
Tesla's website in California reveals a noteworthy deal on a specific Model 3 variant available in their inventory. Priced at $42,060, it represents a discount of $2,680 compared to the price of newly ordered cars. Remarkably, this discount has now doubled since being introduced less than two weeks ago.
In addition to the discounted Model 3, Tesla has reintroduced discounts on certain Model Y vehicles, with nearly $600 off each. The company is also offering more substantial reductions of $6,330 and $5,000 on selected higher-priced Model X and Model S vehicles, respectively.
Industry analysts interpret these pricing adjustments as a strategic response to economic challenges, rising competition, and increased production capacity. By reducing vehicle prices in various countries, Tesla aims to attract more customers and stimulate sales. This approach aligns with the practices of traditional automakers who offer incentives to sell existing inventory.
Tesla's efforts to entice buyers come at a time when the company is preparing to launch an upgraded version of its flagship Model 3 in the United States later this year. Additionally, Tesla has started delivering certain Model Y vehicles equipped with new hardware for their Autopilot system, enhancing their partially automated driving capabilities.
In a surprising announcement during a recent shareholder meeting, Tesla CEO Elon Musk indicated that the company would experiment with advertising for the first time. Analysts speculate that this move aims to generate greater demand for Tesla's offerings. However, Musk cautioned shareholders about the potential challenges posed by the global economy, suggesting that the coming year may present difficulties for the company.
As pre-market trading shows a 0.75% decline in TSLA shares, investors remain attentive to Tesla's strategies and their impact on the company's financial performance. The ongoing discounts and upcoming product launches indicate a dynamic period ahead for the electric vehicle manufacturer.
