Following a shortfall in third-quarter delivery numbers that didn't meet Wall Street expectations, Tesla Inc (NASDAQ:TSLA). has opted to lower US prices for specific Model 3 and Model Y variants.
A reduction in the base price of the Model 3 brings it to $38,990, down from an earlier $40,240. Adjustments to the long-range and performance versions set their new prices at $45,990 and $50,990, respectively.
Starting at $52,490, down from an earlier $54,490, is the new price for the Model Y Performance SUV.
This recent pricing adjustment is part of Tesla's broader strategy to stimulate demand, initiated late last year. In key markets like the U.S. and China, Tesla has been actively modifying prices to address concerns about slowing consumer spending and intensifying competition in the electric vehicle (EV) sector.
Shortly after disclosing Q3 deliveries of 435,059 units, which fell short of analysts' estimates and indicated a sequential decline, Tesla unveiled these price changes.
Operational downtime due to factory upgrades was cited by the company as the reason for the dip in deliveries.
Focusing on sales volume rather than profit margins has been a publicly stated strategy by Tesla CEO Elon Musk, a move that has contributed to a more than 100% surge in the company's stock this year.