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Third Tesla price deduction: Tesla lowers its car prices again in the U.S.

Tesla is not taking its foot off the gas when it comes to lowering the prices of its cars so far in 2023. For the third time in just four months, the American manufacturer has changed the rates on all its models.

Up to a 5,000 dollar reduction
The most important reductions in this latest batch affect, on this occasion, the Model 3, which sees its cost cut by 1,000 dollars, and the Model Y, its best-selling model worldwide, which reduces its price by 2,000 dollars.

With this drop, its two most popular cars have already seen their price cut by 11 percent in the case of the Model 3 and by 20pc in the case of the Model Y.

The larger models are also now more competitive in price as both the Model S and Model X SUV drop by up to 5,000 dollars. The Model 3 now starts in the U.S. at 41,990 dollars, the entry-level Model Y costs 49,990 dollars, the Model S stays at 84,990 dollars and the Model X at 94,990 dollars.

Record sales … but not enough
Tesla recently announced record Q1 2023 sales of 422,875 units worldwide, up 36pc from the same period last year, but just 4pc more than in the last quarter of 2022.

Theoretically positive numbers, but better ones were expected, especially due to the effect that the price drop should have had on demand… which not only affected its local market, but also reached China and Europe.

Analysts believe that this latest move to lower prices at Tesla responds precisely to that, a maneuver to increase orders in its local market since production continues to exceed sales.

Elon Musk, who on Investors Day said that demand for Tesla models was soaring, but the modest increase in sales in the first quarter did not reflect it: the South African defended himself by assuring that the demand exists, but is not reflected because “if the price is more money than people have, that demand is irrelevant”. Hence the discounts.

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