A Tesla Model 3 is seen on a car transporter in front of a store in Rocklin, California, U.S., Wednesday, July 21, 2021. Tesla Inc. is scheduled to release earnings data on July 26.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
tesla Shares of the electric car company fell 5% on Friday after the electric car company cut prices on some U.S. models and lowered the price of its advanced driver-assistance software.
The stock closed at $245.01. After gaining 2.7% this week, it is still up nearly 100% for the year.
Although Tesla Chief Executive Elon Musk has said in the past that the price of Tesla’s advanced driver assistance options sold as Full Self-Driving software will only rise, the company raised the U.S. price from 15,000 The dollar was down $3,000. It’s paid up front, not through a monthly subscription. Subscribers pay $99 to $199 per month, depending on whether they upgrade from the standard version or another premium version.
Tesla also lowered prices on vehicles in its U.S. inventory, including the entry-level Model 3 sedan, luxury Model S sedan and Model X SUV. In China, Model S and Model X prices were reduced by about 7%.
The FSD discount follows reports that the National Highway Traffic Safety Administration is nearing completion of a years-long investigation into possible safety flaws in Tesla’s driver assistance system. The investigation began after a series of crashes involving Tesla drivers who were believed to be using driver assistance features into stationary emergency vehicles.
A price cut on some Model X vehicles in the U.S. makes eligible SUVs eligible for a $7,500 tax credit. However, the price cuts for the Model S and Model X have rattled some long-time customers in the U.S. and China, who have complained on social media that the lower prices hurt the resale value of their cars and that they pay more for insurance , because their cars are more expensive.
Meanwhile, Tesla’s Model 3 update, which was officially released on Friday, includes some controversial changes, such as “stalkless” turn signals.The driver of the redesigned Model 3 in China and USA A button on the touchscreen is required to indicate they are about to change lanes or make a turn. The update to the base Model 3 costs about 12 percent more in China than its predecessor.
Also known as the “Highlander,” the updated Model 3 comes with a longer-range battery. Tesla’s China website says the high-end Model 3 can travel 713 kilometers (443 miles) on a single charge and the base model 606 kilometers (377 miles). The new Model 3 also features a number of interior design changes, including touchscreens that allow rear passengers to adjust comfort settings and entertainment features, as well as tweaks to the vehicle’s exterior design and new colors.
Given its pricing, Bank of America analysts wrote in a note: “We believe the impact of the new Model 3’s debut on Chinese EV peers should It’s manageable.”
The Model 3’s Chinese counterparts include Xpeng Motors’ P7, BYD’s Han Haibao and Leapmotor’s C01 electric car, analysts said..
Initial sales of the updated Model 3 in China may not be as high as previously expected, they said, given the higher starting price. Still, analysts remain upbeat about the outlook for vehicle sales in the current quarter, as consumers wait to upgrade.
Also this week, Tesla faces reports from the Securities and Exchange Commission and Manhattan federal prosecutors in a new federal investigation into whether Tesla’s previous electric vehicle battery range claims were intentionally misleading consumers, and Improper use of resources benefit Musk personally.
Regarding the use of company resources, Musk on Friday denied reports that Tesla planned to build him a “glass house” near Austin, Texas.
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