Tesla has cut prices after it announced a slowdown in deliveries. The company said the decline was caused by factory upgrades.
Tesla Inc (NASDAQ: TSLA) has reduced US prices of its Model Y and Model 3 cars following third-quarter delivery figures that did not meet expectations.
According to the company’s website, the starting price for the Model 3 is $38,990, lower than the previous $40,240 listing. The long-range version dropped from $45,990 to $47,240, while the Model 3 was reduced from $53,240 to $50,990. Tesla also reduced 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 and delivery figures. For Models 3 and Y, Tesla said it produced 416,800 in the quarter and delivered 419,074. Overall, Tesla manufactured a total of 430,488 electric vehicles and delivered 435,059. Unfortunately, these deliveries did not meet Wall Street expectations. Analysts surveyed by StreetAccount had put deliveries at 461,640.
In the vehicle production and deliveries report, Tesla said the volume decline was due to “planned downtimes for factory upgrades.” However, the company said its 1.8 million target for total deliveries in 2023 remains unchanged. During the company’s July earnings call, CEO Elon Musk predicted a production decline because of factory upgrades. At the time, he also reiterated the target for total deliveries in 2023.
Tesla categorizes deliveries into Model 3 and Y, and Model S and X vehicles. The company announces figures for each category but does not report numbers for individual models. Also, the company does not publicize figures for deliveries by region.
Since the end of 2022, Tesla began reducing car prices across multiple regions to maintain demand. The company hopes price reductions will help attract more buyers as consumer spending decreases and EV competition increases.
Tesla Prices May Benefit from Proposed Turkey Factory
Last month, Turkish President Recep Tayyip Erdogan invited Elon Musk to 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 the success of Turkey’s Togg EV maker. Erdogan reportedly told Musk that Tesla would thrive considerably well in the region if Musk decided to put the company’s next factory in Turkey. In addition to the invitation, Erdogan suggested a collaboration between Musk’s space exploration company SpaceX, and Turkey’s space program. Furthermore, the Turkish President asked Musk to join Turkey’s aviation, aerospace, and technology festival Teknofest, which runs from late September to October.
Musk reportedly responded by stating an interest in the Turkish market. He also noted 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 an intention to choose the location of Tesla’s new factory by the end of 2023. A new factory in Turkey may be advantageous for the region and also spread production demands weighing on running factories.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Tolu Ajiboye
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