Tesla, the electric vehicle (EV) pioneer, has once again adjusted the prices of its popular Model 3 sedan and Model Y crossover in the United States, aiming to stimulate sales and make its vehicles more appealing to consumers.
As per the information available on Tesla’s official website, here are the updated prices for these EV models:
- The Model 3 Rear-Wheel Drive (RWD) now starts at $38,990, down from its previous price of $40,240.
- The Model 3 Long Range is now priced at $45,990, reduced from its earlier cost of $47,240.
- The Model 3 Performance now begins at $50,990, a significant reduction from its previous price of $53,240. This performance-oriented model boasts impressive stats, with a top speed of 162 mph and an impressive range of 315 miles per charge.
In addition to the Model 3 adjustments, Tesla has also lowered prices for its Model Y crossover. The Model Y Long Range and Model Y Performance variants now start at $48,490 and $52,490, respectively, down from their previous prices of $50,490 and $54,490. The Model Y RWD retains its price at $43,990.
These price reductions are expected to make Tesla’s offerings more enticing to the U.S. market, particularly because both the Model 3 and Model Y qualify for the $7,500 federal tax credit under the Inflation Reduction Act. Incentives available in certain states, such as Colorado, can further reduce the prices of these EV models.
However, it’s worth noting that Tesla has opted to increase the price of the Model Y in Sweden and Norway. In Sweden, the price has gone up by $1,364, while in Norway, the increase ranges from $1,822 to $2,186.
Throughout this year, Tesla has made several adjustments to its vehicle prices as part of its efforts to stimulate demand. As the year progresses, Tesla is gearing up to start deliveries of the highly anticipated Cybertruck and the Model 3+. This diversified product lineup could play a crucial role in helping the company achieve its ambitious delivery target of 1.8 million units in 2023.
Despite a slight dip in the number of vehicles sold in September, Tesla delivered strong sales results in the third quarter. Notably, the company sold 74,073 vehicles manufactured in Giga Shanghai in September, representing a decrease from the year-ago period. However, Tesla’s overall sales remained robust, with 222,517 China-manufactured vehicles sold in the third quarter, marking an 18.16% year-over-year increase. In the first three quarters of 2023, Tesla sold a total of 699,056 vehicles, reflecting a substantial year-over-year growth of 44.71%.
Tesla currently holds a Zacks Rank #3 (Hold) in the stock market. For investors interested in the auto industry, some better-ranked options include Li Auto (LI), Ford Motor Company (F), and Allison Transmission Holdings, Inc. (ALSN). Li Auto and Ford are currently rated as Zacks Rank #1 (Strong Buy), while Allison Transmission Holdings holds a Zacks Rank #2 (Buy). These companies exhibit promising growth potential, as indicated by their respective Zacks Consensus Estimates for sales and earnings in 2023.
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