logo-loader
viewTesla Inc

Tesla cuts Model 3 prices once again as US government phases out tax credits

A basic Model 3 will now set you back US$42,900, but that is still well above the US$35,000 Elon Musk had originally promised

tesla model 3
Tesla is cutting costs and ramping up production so it can remain profitable while lowering prices

Tesla Inc (NASDAQ:TSLA) has cut the price of its Model 3 for the second time this year as it looks to prop up demand for its first mass-market electric car.

US authorities have been phasing out tax credit for Tesla cars since the beginning of January, effectively raising the purchase price of its cars by US$3,750.

READ: Tesla turns a profit for second quarter in a row

The electric carmaker initially responded by trimming its prices by US$2,000, but it said on Wednesday that it had shaved off another US$1,100.

Even with the latest cuts, the cheapest Model 3 will still set customers back US$42,900 and Tesla has been ramping up production and cutting costs as it looks to get the starting price below the US$35,000 target Elon Musk had originally promised.

It said it was able to fund the most recent price cuts by ending a costly referral programme which gave new buyers six months of free charging and prizes for existing owners.

Musk recently posted on Twitter, saying that his company, which is worth US$55bn, is “doing everything [it] can” to lower prices.

Last month, Tesla posted only its fourth-ever profitable quarter despite delivering slightly fewer Model 3s than Wall Street analysts had been expecting.

The California-based company’s stock was down 0.7% to US$321.35 in pre-market trading in New York on Wednesday.

Quick facts: Tesla Inc

Price: 330.37 USD

NASDAQ:TSLA
Market: NASDAQ
Market Cap: $59.55 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

PCF Bank's Scott Maybury reports on strong lending growth and increased...

PCF Group Plc's (LON:PCF) Scott Maybury speaks to Proactive London's Andrew Scott after the specialist lender posted record numbers in its latest year. Loans outstanding rose 55% to £339mln with profits for the twelve months to September climbing by 54% to £8mln. Maybury says targets for a...

11 hours, 36 minutes ago

2 min read