German Manager Magazine: Tesla is cutting prices again – in the USA002784

Tesla has after one Decline in deliveries In the last quarter, the prices for its most important models in the USA were again reduced. The starting price for the Model 3 on Friday was $38,990 – that was $1,250 less than before. A few days earlier, the electric car manufacturer had put a cheaper version of the Model Y compact SUV back on offer.

Tesla still sells by far the most Electric cars in the USA. But recent sales figures also show that buyers continue to like large pickup trucks and SUVs – and often opt for hybrid drives, which are cheaper than fully electric models. Americans’ willingness to spend is being curbed, among other things, by increased interest rates.

Tesla delivered 435,059 vehicles to customers in the last quarter – almost 7 percent less than in the previous three months. The company justified this with production interruptions to replace machines in factories. However, even including the planned production breaks, experts had expected around 20,000 more cars to be sold. This quarter, Tesla would have to deliver around 475,000 vehicles to meet the annual target of 1.8 million.

Thanks to its high production capacity and well-established production, Tesla has more scope for price reductions than the large car companies that are only just switching their focus to electric vehicles. The prices for some raw materials also fell again. In addition, Tesla boss Elon Musk argues that with digitalized cars you can also later earn money with software updates and other services. However, price cuts are squeezing profit margins.

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