Tesla has cut prices after announcing a slowdown in deliveries. The company said the decline was due to factory upgrades.
Tesla Inc TSLA (NASDAQ:TSLA) has cut U.S. prices for its Model Y and Model 3 cars after third-quarter delivery figures fell short of expectations.
According to the company’s website, the Model 3 has a starting price of $38,990, down from its previous listing of $40,240. The Long Range Edition dropped from $45,990 to $47,240, while the Model 3 dropped from $53,240 to $50,990. Tesla also slashed its Model Y sports utility vehicle (SUV) from $54,490 to $52,490.
On Monday, Tesla published a report for the third quarter of 2023, highlighting production distribution statistics, For the Model 3 and Y, Tesla said it produced 416,800 and delivered 419,074 in the quarter. Overall, Tesla manufactured a total of 430,488 electric vehicles and delivered 435,059. Unfortunately, these deliveries did not meet Wall Street’s expectations. Analysts polled by StreetAccount had expected deliveries to be 461,640.
In vehicle production and delivery reportTesla Said The decline in volume was due to “planned downtime for factory upgrades”. However, the company said its target of 1.8 million total deliveries in 2023 remains unchanged. During the company’s July earnings call, C.E.O. Elon Musk Production predicted to decline due to factory upgrades. At that time, he also reiterated the total delivery target in 2023.
Tesla categorizes deliveries into Model 3 and Y, and Model S and X vehicles. The company announces figures for each range but does not report numbers for individual models. Additionally, the company does not publicize region-wise delivery figures.
Starting in late 2022, Tesla began lowering car prices in several regions to maintain demand. The company hopes the price cut will help attract more buyers as consumer spending declines and EV competition increases.
Tesla prices could benefit from proposed Turkey factory
Last month, Turkish President Recep Tayyip Erdogan invited Elon Musk will consider setting up a Tesla factory in the country. The pair met in New York, where Erdogan was attending the United Nations General Assembly.
According to reports, Erdogan and Musk spoke at the Turkish House in Manhattan, where the president noted Turkey’s success tog EV manufacturers. Erdogan reportedly told Musk that Tesla would develop well in the region if Musk decided to locate the company’s next factory in Turkey. In addition to the invitation, Erdogan suggested cooperation between Musk’s space exploration company spacex, and Türkiye’s space program. Additionally, the Turkish President asked Musk to attend Technofest, Turkey’s aviation, aerospace and technology festival, which runs from late September to October.
Musk reportedly responded by stating interest in the Turkish market. He also said that the company was already working with Turkish suppliers and that Turkey is a strong consideration for the company’s next factory. The CEO had previously expressed his intention to choose the location of Tesla’s new factory by the end of 2023. A new factory in Turkey could be beneficial for the sector and also increase production demand on existing factories.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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