Tesla cuts prices on Model 3 and Y after dwindling deliveries

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Tesla is cutting prices on some
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and
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vehicles in the US, as
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CNBC. The automaker’s move, its
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in just over a month, comes after it
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of market estimates for deliveries.

Tesla’s website now lists the Model 3 starting at $38,990, down from its previous $40,240. Meanwhile, the Model 3 Long Range is now $45,990 (down from $47,240), and the Model 3 Performance has a new price of $50,990 (from $53,240). In addition, the Model Y Performance SUV has fallen from $54,490 to $52,490.


These are minor cuts compared to the nearly 20 percent price drops it issued in September on
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and
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EVs. They also pale in comparison to the
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that dropped Model X costs by up to $10,000. Tesla began toying with pricing in late 2022 when it lowered costs to face a
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and increased EV competition. The automaker attributed its third-quarter slump to factory upgrades, leading to manufacturing downtime. Since January, Tesla has cut the cost of the Model 3 by about 17 percent and the Model Y by 26 percent.

CEO Elon Musk has signaled he is willing to prioritize volume and market share over profit margins in the near term. “I think it does make sense to sacrifice margins in favor of making more vehicles,” he
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in July. However, the automaker believes it will still reach its 2023 goals. “A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged,” Tesla
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in a statement this week.

This article originally appeared on Engadget at
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