In a bid to entice buyers amid economic uncertainty, heightened competition, and the upcoming redesign of its main model, Tesla Inc has ramped up discounts on some already-produced new Model 3 electric cars. It has also offered discounts on the Model Y, and other models in its U.S. inventory.
According to the Tesla website, a Model 3 variant listed in the inventory was priced at $42,060 in California, showing a discount of $2,680 when compared to the price of newly ordered cars. This marks a significant increase from the $1,300 discount offered on Model 3 cars less than two weeks ago, notes Reuters.
The company has also resumed providing nearly $600 off on some Model Y vehicles. Furthermore, Tesla has offered even steeper discounts on certain higher-priced Model X and Model S vehicles, up to $6,330 and $5,000, respectively.
This year, Tesla has faced an array of challenges including economic headwinds, intensifying competition, and scaling production. As a response, the company has proactively slashed vehicle prices in numerous countries and resorted to the traditional approach of offering incentives to clear inventory, as noted by market analysts.
Tesla is poised to launch a redesigned version of its Model 3 in the United States this year and has already started shipping some of its Model Ys with new hardware for its Autopilot partially automated driving system.
Elon Musk, Tesla’s CEO, communicated to shareholders this month that the company would venture into advertising for the first time, a move seen by analysts as a strategy to spur demand. Musk also emphasized that Tesla, like any other entity, is not immune to global economic challenges, forecasting a tough economic scenario for the next 12 months.
