In a move that may surprise some, Tesla has once again cut the prices of its most popular models, the Model 3 and Model Y. This marks the second time this month that the electric vehicle maker has lowered prices, with some brand-new cars now starting under $40,000 (Electrek).
The price reductions come on the eve of Tesla’s Q1 earnings report and follow the automaker’s recent success in Europe. The Model Y is poised to become Europe’s best-selling midsize SUV in Q1, having more than doubled its sales from February to March after a significant price drop (Automotive News Europe).
The reduced prices are also putting pressure on ICE models, with the Model Y now challenging them in terms of cost (Green Car Reports). Despite the price cuts, Tesla remains confident in its ability to turn a profit, boasting strong sales numbers and consistently high demand for its vehicles (Bloomberg.com).
Interestingly, Tesla has implemented these reductions without any direct quotes or official statements regarding the reasons behind them. However, analysts speculate that the company is aiming to maintain its competitive edge in an increasingly crowded EV market (InsideEVs).
Regardless of the reasoning behind the price cuts, customers are likely to take advantage of the lowered costs. With the Model Y quickly becoming one of Tesla’s most popular models, it remains to be seen whether these discounts will result in even more sales for the EV company in the coming months (The Verge).
