Tesla again reduced prices for Model 3 and Model Y in the USA – Kommersant

Tesla continues to cut prices on its electric vehicles as it tries to meet its own sales target this year. As reported Reuters, this time the company has reduced the price tags for Model 3 and Model Y in the United States. Since the beginning of the year, prices for the sedan and crossover have already decreased by 17% and 26%, respectively.

The starting price for the Model 3 in the US is now $38,990. Thus, the sedan has fallen in price by $1,250. The Model Y crossover can now be purchased for $48,490 – $2 thousand cheaper than before. At the same time, the more expensive configurations of these models have also become cheaper.

The price cut came after the company reported poorly for the third quarter of the year. During these three months, the company produced 430 thousand cars and sold 435 thousand. Year-on-year sales increased by 27%, but compared to the second quarter of this year they decreased by 6.7%. Sales decline quarter-on-quarter became the company’s first in more than a year. At the same time, sales were lower than analysts’ forecasts, who expected sales of about 461 thousand cars.

Investors reacted negatively to the news of another price cut for electric vehicles. Tesla shares are down 3% in over-the-counter trading. Lower prices will certainly lead to a fall in the company’s profit margin, which in the third quarter was already the worst in the last four years. Analysts surveyed by Visible Alpha expect gross margin for the quarter to be 19.1%, well below the record margin of more than 32% in the first quarter of last year.

Kirill Sarkhanyants