Tesla Cuts Prices On US Models After Missing Delivery Goals

Tesla has reduced the prices of its Model 3 compact sedan and the Model Y SUV in the United States. This price reduction is part of Tesla’s strategy to boost sales and maintain competitiveness in the market.

The standard Model 3 sedan is now priced at $38,990, which is $1,250 cheaper, and the Model Y long-range variant is now priced at $48,490, representing a $2,000 price reduction. These cuts range from approximately 2.7% to 4.2%. Tesla initiated a series of price cuts starting in January, aimed at supporting sales and staying competitive, especially against automakers like Ford and Chinese automaker BYD.

Tesla’s recent price reductions come after the company faced challenges in meeting market expectations for third-quarter deliveries. The automaker has set an ambitious target of delivering 1.8 million vehicles in 2023, which requires the delivery of a record 476,000 vehicles in the last three months of the year.