Tesla price cuts is making a comeback for a second time this month. Why does the carmaker slashing down their cars faster and more incessant?
Tesla has once again cut prices across its line of electric cars. This Tesla price cut marks the second time in April that the company slashed prices on Model 3 and Model Y vehicles. Thus, bringing them under $40,000 before incentives.
The price reductions come as part of Tesla’s plan to stay competitive in an increasingly crowded EV market. As a result, the company has steadily increased prices over the last two years. Still, with new models from other car manufacturers appearing on the scene, Tesla is cutting costs to remain attractive to buyers.
The latest cuts bring some popular models down to their lowest-ever starting prices. For example, a Dual Motor Long Range Model 3 now starts at $38,990 before incentives. As you can see, this is a significant drop from the $47,490 it cost 3 months ago. Similarly, a Standard Range Plus Model Y now starts at $39,990 before incentives. This sets Tesla down from the $44,190 it cost just 2 weeks ago.
For those in the market for an electric car, this might be good news, too. These price cuts present an excellent opportunity to pick up a Tesla at a significantly lower cost than before. In addition, with more models the carmaker released all the time, buyers have plenty of choices when purchasing. This is something that only the industry movers deem as a good news. Of course, we can only guess whether or not Tesla’s strategy will pay off in the long run. However, there has never been a better time for you to get one of their cars.
Our Take
Despite the recent price cuts, Tesla continues to be one of the most expensive electric vehicle manufacturers on the market. However, with competition increasing, they may have no choice but to reduce prices further to remain competitive. And with over half a million cars already sold by the company this year alone, it looks like they’re doing something right.
It seems that the carmaker thought these latest Tesla price cuts can make up for the reduced incentive they received from the federal government. This is due to the their change in battery sourcing requirements. However, it also signals that Tesla wants to become more competitive.
Tesla’s CEO Elon Musk has previously stated that its goal is to make electric vehicles cost less than cars with an internal combustion engine. So, these latest price cuts could be seen as another step for them.
The timing of the price cut is also an effort by Tesla to drive sales ahead of its first-quarter earnings report. Many analysts expect a strong showing from the company, owing to its success over the past year and a steady increase in demand for its range of vehicles.
By offering customers lower prices and positioning themselves more competitively in the market, Tesla could drive even more sales and achieve record profits in the coming months.
