The sharp price cuts sent Tesla shares down nearly 4% in midday trading Friday.
DETROIT — With its sales slowing and its stock price tumbling,Inc. slashed prices dramatically Friday on several versions of its electric vehicles, making some of its models eligible for a new federal tax credit that could help spur buyer interest.
The company dropped prices nearly 20% in the United States on some versions of the Model Y SUV, its top seller. That cut will make more versions of the Model Y eligible for a $7,500 electric-vehicle tax credit that will be available through March. It also reduced the base price of the Model 3, its least expensive model, by about 6%.Far from pleasing investors, the sharp price cuts sent Tesla shares down nearly 4% in midday trading Friday.
Itay Michaeli, an industry analyst at Citi, wrote in a note to investors that Tesla appears to be prioritizing sales volume over price — a strategy that could affect its profit margins, at least in the near term.The Model Y Performance version, formerly priced at nearly $70,000, now starts at just under $57,000. The starting price of the Model 3, Tesla’s lowest-priced vehicle, was cut to just under $44,000 from $47,000.
Tesla has added two huge factories in Austin, Texas, and Berlin that are running at only a fraction of their output capacities, “which is undoubtedly costing them dearly,” Abuelsamid said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla slashes prices on new electric vehicle models in the U.S.The cuts add to the worries of a demand slowdown for Tesla at a time when investors are casting doubt on Musk’s leadership abilities.
Read more »
Tesla slashes prices of Model 3 and Y cars in the U.S.Tesla dramatically lowered the prices of its Model 3 and Y cars and also cut prices for several European countries, according to reports.
Read more »
Tesla slashes UK prices by as much as £8000 | AutocarTesla has slashed prices of the Model Y and Model 3 by as much as £8000 in a drastic extension of its sales incentives
Read more »
Tesla Slashes Prices Up to 20% in Broad Bid to Boost SalesTesla, which has notoriously shunned the notion of discounts, has slashed across its model line to stimulate sales.
Read more »
Tesla Slashes Up To $13k Off Prices In U.S. And Europe To Counter Sales Slowdown | CarscoopsPrice cuts bring Model Y down from $65,990 to $52,990 and help it qualify for a further $7,500 in tax credits
Read more »
Tesla slashes its car prices as much as 20% to prop up sagging salesThe Model S Plaid, which previously cost $135,990, will now set the consumer back $114,990 — a 15% reduction in the sticker price.
Read more »