Tesla Giving Over $1,300 Discount to Model 3 Units in the US

Tesla is offering a new discount for Model 3 electric vehicles in the United States. The American automotive company is granting more than $1,300 price cut for the said car model.

According to Reuters, Tesla’s attractive discount offer in the U.S. comes after it has given bigger discount rates in Europe. Elon Musk’s car manufacturing company is said to have resorted to a common strategy of lowering prices through discounts to clear its inventory amid the rising competition.

It was noted that Tesla already launched a series of price cuts in some regions this year, and this only shows it is making an aggressive move to unload or sell the units at a time when the economic situation is not that good. The company is also facing a lot of competitors in the field thus, it needs to use a strategy to sell.

Tesla’s chief executive officer, Elon Musk, also revealed during a recent shareholders meeting that they would also get into advertising to empty out the inventory, and they will be doing this for the first time. It also hopes that this move will help boost the demand as Musk also warned that their company is not immune to the global economy, which has been dwindling in recent years.

Autoblog mentioned that the automaker slightly raised the prices of its new models, and this was done twice already in this month alone. The prices are now much lower since it already lowered the prices earlier this year.

For the changes in pricing, Tesla’s Model 3 is now being sold with a starting price of $40,240, while its Model Y starts at $47,490. These rates are for units bought in the U.S. only.

"Tesla is beginning to rely on incentives in the same manner traditional automakers have when their dealer inventories begin to spend too much time on the lot," the publication quoted Ivan Drury, director of Insight at Edmunds.com. “The incentives "signal that Tesla has begun to slightly oversupply the market."

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