• Tesla is turning the price screw again
• Long range and performance variants of the Model Y are becoming cheaper
• Model 3 Rear Wheel Drive is also falling in price
The electric car pioneer Tesla has again corrected the prices for parts of its vehicle portfolio downwards. The move comes immediately before the quarterly results are released on Wednesday evening.
Sixth price reduction this year
On the company’s US website, prices for some of Tesla’s electric car models were adjusted on Tuesday evening. Accordingly, the Model Y in the “Long Range” and “Performance” variants now costs $3,000 less, for the Model 3 “Rear Wheel Drive” customers now have to pay $2,000 less – all in all there are now only $39,990 due.
It is already the sixth price step down this year. Previously, the concern headed by billionaire Elon Musk Price reductions have already been made for the base model Model 3 and the base variant of the Model Y: Since the beginning of the year, prices have fallen by eleven and 20 percent, respectively, as Reuters reports.
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Previously, purchases in Europe, Israel, Singapore, Japan, Australia and South Korea had also benefited from lower selling prices for Tesla vehicles. In China, too, the Americans wanted to boost demand with extensive discounts.
Reaction to the elimination of tax subsidies?
The latest price cuts are likely to have been made with a view to the end of US subsidies for electric cars. In particular, the cheap Tesla models are threatened by the loss of tax credits, since the United States only wants to fully subsidize vehicles that are manufactured in local factories in the future. In addition, the minerals required for battery production are to be mined, processed or recovered in the USA or in countries with free trade agreements with the USA. And the final assembly of the vehicle also has to take place in North America. The battery pack for the Model 3 comes from China – this means that at least part of the tax credit could be lost. With the price adjustments, Tesla wants to support demand for its vehicles.
Marge at risk?
The numerous price reductions of the past few months have also called critics into action. Because the less Tesla earns from its vehicles, the lower the margin – an important factor for analysts and Tesla shareholders.
Tesla – compared to the competition – is still on the road with high margins, but the quarterly figures in the evening will show to what extent the price adjustments have already had an impact on profit development.
In NASDAQ trading, Tesla shares temporarily lost 1.03 percent to $182.41.
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