Tesla’s Ongoing Pricing Strategy Aims to Reach 2023 Production Targets
Tesla continues to fine-tune its pricing strategy as it strives to meet its ambitious 2023 production target of 1.8 million electric vehicles (EVs) worldwide. In the pursuit of this goal, the electric vehicle manufacturer has once again adjusted the pricing of its popular Model 3 and Model Y offerings.
The base price of the Tesla Model 3 has been lowered to $38,990, down from its previous price of $40,240. Meanwhile, the Long Range version now comes with a price tag of $45,990, down from $47,240. The top-tier Model 3 Performance variant boasts a substantial $2,250 price reduction, now available at $50,990.
This pricing strategy is believed to be part of Tesla’s effort to clear inventory in preparation for the facelifted Model 3. Interestingly, the United States, Tesla’s home market, has been one of the last regions to receive the upgraded model, with other markets like Australia, Europe, and China already enjoying the new Model 3.
In addition to the Model 3 adjustments, Tesla has also reduced the price of the Model Y. The Long Range version now starts at $48,490, following a $2,000 price cut. The recently reintroduced single-motor variant, launched just days ago, retains its price of $43,990. Importantly, these prices do not yet account for destination charges and the potential $7,500 federal tax credit, which can make Tesla’s EVs even more appealing to prospective buyers.
Industry observers suggest that Tesla’s dynamic pricing strategy aims to boost sales in the final quarter of this year. While the company faced some challenges in meeting expectations in the third quarter of 2023 due to pricing adjustments, the introduction of the facelifted Model 3 is expected to invigorate the market with its sleeker design, extended range, and faster charging capabilities.
In addition to these moves, Tesla’s forthcoming Cybertruck is poised to contribute significantly to the brand’s sales targets, with mass production scheduled to commence in 2024. Tesla’s ability to adapt its pricing and product offerings reflects its determination to drive EV adoption and achieve its ambitious production goals.