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New U.S. Pricing Strategy for the Model 3 and Y Should Improve Tesla’s Sales

It is easy to ask for lots of money when you are the only one around with a certain kind of product. Tesla used to be like this, but the international competition is now pumping up the pressure.
Tesla Card 5 photos
Photo: Tesla
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As a result, at least a recalibration of the prices is necessary to keep the already known Tesla automobiles interesting for the potential clientele. At the same time, lowering the prices looks like a good idea considering how there are sometimes quality issues with these products that social media immediately makes public nowadays.

Now, would you expect Elon Musk to let the money go, just like that? Well, not really. You see, Tesla Inc. has reduced the price of its cheaper variants of the Model 3 sedan and the Model Y SUV, while raising prices for their performance variants, as the electric-car maker’s website is showing, according to Reuters.

The price of the Tesla Model 3 Standard Range Plus has been lowered by $1,000, from $37,990 to $36,990, while the Model Y Standard Range’s price got slashed by two grand to $39,990 from $41,990, as per the company's consumer website.

Beyond this, the carmaker has been making various models in its lineup more affordable at a time when legacy automakers are working to establish their own inroads into the electric vehicle market. The standard lineup of the Model Y was launched in January, bringing the SUV’s price closer to that of the Model 3 sedan, which is currently the electric-car maker’s least expensive model.

The prices for the Performance variant of the Model 3 rose to $55,990 from $54,990, and the same happened to the go-fast Model Y Performance, which now costs $60,990, up from $59,990 before, the website shows. The price cuts come as Tesla looks to ramp up its deliveries. Overall, the company delivered 499,550 vehicles during 2020, above the Wall Street estimated figure of 481,261 vehicles.
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