Business Essentials for Professionals


Tesla Has Changed Its Prices In The United States For The Fourth Time In Two Months

Tesla Has Changed Its Prices In The United States For The Fourth Time In Two Months
Tesla has raised the price of one version of its Model 3 sedan and Model Y crossover, the fourth price increase by the electric vehicle manufacturer since the start of the year.
Tesla raised the price of its Model Y performance crossover by $1,000 to $58,990, according to the company's website. According to the website, it reduced the price of its cheapest model, the rear-wheel drive Model 3 sedan, by $500 to $42,990.
Both vehicles are eligible for federal tax credits totaling $7,500.
Tesla slashed prices across its entire lineup and in all of its major markets in January.
Since then, the company has been adjusting prices online at an unusually rapid pace in an industry where the standard is still described as "sticker prices" on the window of a vehicle in inventory.
Despite the recent changes, the performance version of the Model Y, which has a higher top speed and lower suspension, is still about 16% cheaper for US customers than it was in early January.
The Model 3 with rear-wheel drive is about 9% less expensive.
Prices for the other two Model 3 and Model Y variants on the market in the United States remained unchanged on Tuesday.
Tesla raised the price of its Model Y Long Range in the United States earlier this month after the government raised the price cap for crossover electric vehicles eligible for the income tax incentive.
Elon Musk, CEO of Tesla, stated last month that vehicle orders were roughly double the company's output in January following the first round of price cuts.
Musk stated that strong demand prompted the company to implement its first minor price increase for the Model Y, and that the company would focus on price to drive demand as the economy approaches what he believes will be a recession.
Tesla's steep price cuts in January sparked protests in China from Tesla buyers who had purchased earlier and thus missed out on the price cuts.
Some Tesla owners in the United States have complained that the price reductions have reduced the resale value of their vehicles.
Tesla's price cuts this year came after nearly two years of raising prices and failing to keep up with demand.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc