Tesla Model 3 Price Cut for Second Time This Year

Tesla Model 3 Price Cut for Second Time This Year

Tesla delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States to offset a reduction in a green tax credit.

Tesla Inc said on Wednesday it was lowering the price of its Model 3 sedan for the second time this year, moves that come in the wake of Tesla losing a tax credit that made its cars more affordable for US buyers.

For $42,900, buyers will get a rear-wheel-drive Model 3 - in black only, as all other colors cost more - with Tesla's lower-range battery that goes 264 miles per charge.

"The demand for - the demand for Model 3 is insanely high".

Tesla continues to display pricing in a creative manner.

Tesla ended its customer referral incentive plan on february 1 after Musk tweeted that the referral program was "adding too much cost to the cars, especially Model 3". CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed.

Reminded by a Twitter follower that the promise was for a $35,000 vehicle without the fancy accounting, Musk replied: "We're doing everything we can to get there. "It's a super hard grind". Tesla said in a statement that ending the costly referral program allowed it to cut the Model 3 price.

Questioned by another follower as to how this would affect European prices - the first shipment of Model 3s having just arrived in Europe as of Tuesday - Musk responded that Value-Added Tax and import duties would result in a 30% higher price.