With the world starting to get more or less back to normal, demand for a variety of products is starting to come back as people head back to work. However, after having their production halted for over a month, it has been Tesla’s best interest to get demand for their cars up as quickly as possible. As such, we are seeing a near model wide price cut, so if you have the means, it’s probably a good time to get one.
While it seems like demand has not been too much of an issue for Tesla recently as the company has had very strong recent quarters, it looks like the company is looking for a quick burst of sales before the quarter ends.
Starting with the most popular car, the Model 3 has seen a $2,000 price cut along all its powertrain configurations. This means that the Standard Range Plus now starts at $37,990 instead of $39,990. This however still does not make it the cheapest Model 3, as there is still the $35,000 Model 3 available “off-menu” which has fewer options, such as no autopilot.
Regardless, it’s much easier for the average consumer to see and get.
Moving on to the big boys, the Model S and Model X both received price cuts as well. Both models received a $5,000 price cut, with the Model S Long Range Plus now starting at $74,990 and the Model X Long Range Plus now at just under $80k at $79,990.
These price cuts represent a 5% to 6.25% drop in price depending on the model in question.
The newest addition, the Model Y, has received a 0% price cut as there is still either plenty of demand for the new electric crossover or Tesla just wants to focus on the models it can produce at a faster pace. While delivery times for the Model S/X/3 are listed as 4-6 weeks, the delivery time for Model Y is listed as 8-12 weeks.
Tesla produced more cars than it delivered last quarter so getting through all their unsold inventory, even if there’s a hit to their gross profit, takes priority. Tesla however has been reporting a gross profit margin of 20%-25%, so these price cuts shouldn’t necessarily mean that they will be losing money on all the cars they sell.
What do you guys think of the decision? Have you been waiting for an opportunity to arise and get yourself a Tesla? Let us know down in the comments below.
