Tesla’s best-selling electric car now competes directly with gasoline models on price The latest round of price cuts. At least one investor said the lower price could cost the company $1.2 billion a year.
The base Model 3 sedan sells for $38,990, which is currently $8,700 less than the average price of a car or truck in the United States. According to the analysis, the starting price of the Model Y SUV is $3,700 less than the average car price of about $48,000. Bloomberg Green. Tesla began cutting prices early this year, putting pressure on already struggling traditional automakers. Efforts to make electric vehicles profitable.
“What’s interesting now with costs falling is … life after price parity,” said Sam Korus, an analyst at Ark Investment Management, which manages about $1.27 billion worth of special assets. Tesla stock fund. “There’s no reason for battery costs or electric vehicles to stop falling at price parity. The product can continue to drop in cost, or continue to be in the same price segment with improved performance.”
While Tesla’s stock price was little changed in response to last week’s production cuts, agitation for production cuts this year has sown discord among some investors.Gary Black, managing partner of Future Fund, said Last week’s changes Starting in 2024, Tesla will spend only $1.2 billion per year.
Black used his widely followed X social media account to advocate for Tesla to spend money on traditional advertising campaigns rather than cutting prices. “I’m surprised that Tesla super bulls are trying to frame last night’s price cut as a positive,” Black said Published on October 6. “We hope Tesla will use its long-term advertising investment to educate (internal combustion engine) owners to switch to electric vehicles, rather than cutting prices.”
The Model 3, which now starts at $6,500 less than the cheapest BMW 3 Series, is generally seen as the Tesla sedan’s most direct gasoline-powered rival. Combined with $7,500 in federal EV incentives and fuel savings, the cost of ownership is on par with the 2024 Toyota Corolla.
Tesla also lowered the prices of its premium vehicles, the Model S full-size sedan and Model X three-row SUV, making both vehicles their cheapest ever compared to average U.S. transaction prices. September base price According to automotive information company Edmunds, a new car costs $47,698 in the United States.
Some see Tesla’s price cuts as a cost of supporting demand after Chief Executive Musk acquired Twitter Inc., now X Corp. — and his increasing involvement in right-wing politics.
“Sadly, Tesla continues to have to cut prices to sell cars,” said Ross Gerber, co-founder and CEO of wealth management firm Gerber Kawasaki Inc. “Screw up the core demo and lower margins to clear inventory. Overall planning!”
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