Electric Vehicle (EV) giant Tesla TSLA has introduced an all-out discount strategy to boost fourth-quarter sales numbers for Model Y. As the company is in the final leg of the year, it is offering a wide range of incentives to attract more customers. Tesla is offering up to $1500 off for the Model Y Standard, which starts with a base price of $39,990. Similarly, the Model Y Premium, which starts at $44,990, gets up to $2000 off.
The company is also offering one free service, like free paint color, interior color, or upgraded wheels, making the deal sweeter. It also offers 0% APR financing for up to 72 months and low-interest financing for other models.
Tesla’s strategy is to make the deal more affordable for customers with easy monthly payment options. With the help of these lucrative offers, Tesla is planning to clear out their inventory and is trying to keep up with third-quarter sales and revenue numbers with their incentive program.
The company delivered 497,099 vehicles, which rose 7% year over year and topped our estimate of 435,370 units. The Model 3/Y registered deliveries of 481,166 vehicles, which rose 9% year over year and topped our expectations of 416,456 units.
Tesla’s latest move may be a step forward, but they have to be more competitive with their offers. While discounts or offers can work for the short-term for someone who is interested in the EV buying space, overall, the company needs to look for other options to maintain its growth intact to cope with strong competition in the market.
Chinese automaker XPeng XPEV is offering models at lower prices. The XPeng G7 offers over 700 km of range with a starting price under $28k, significantly cheaper than Tesla’s Y model. XPeng betting is big on its advanced XNGP system, which has already been active in multiple Chinese cities. XPeng’s hands-free technology handles highway and traffic signals. It stands out in pushing for map-free driving, which is a key step toward a scalable auto environment.
NIO Inc. NIO Onvo L60 (with battery included), offers a range of up to 740km on its 85-kwh model, which is priced somewhere around $29,300. NIO is racing ahead with the NOP+ driver-assist system technology, which offers point-to-point driving assistance on highways and roads. NIO is positioning itself as a serious challenger in the hands-free segment, especially in global EV markets, where it is looking to expand its services. It is aggressively focusing on battery innovation, smart driving services, technology advancement and global expansion in the EV segment.