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Business News/ Companies / News/  Tesla is offering more than $1300 discounts on some Model 3 cars in US
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Tesla is offering more than $1300 discounts on some Model 3 cars in US

EV maker Tesla is offering discounts of more than $1,300 on some Model 3 cars in the US while the company is offering much steeper discount in Europe owing to growing global inventory.

 CEO Elon Musk told shareholders Tesla will try advertising for the first time, a move analysts said could drum up demand. (MINT_PRINT)Premium
CEO Elon Musk told shareholders Tesla will try advertising for the first time, a move analysts said could drum up demand. (MINT_PRINT)

Elon Musk-backed Tesla is offering steep discounts on some Model 3 cars in the US. Reportedly, the company is offering discounts of up to $1300 while the company has also raised prices for some cars. Earlier this month, Tesla was also offering discounts of up to $250 on Model 3 and Model Y cars. Model 3 cars now start at $40,240 while Model Y cars start at $47,490.

Tesla is offering even steeper discounts in Europe, with the EV maker offering discounts of up to $3,490 euros on its China-made Model 3 car and discounts of up to 3,660 euros for its Germany-made Model Y car. Reports suggest the company is also offering similar discounts in France, Germany, United Kingdom and Italy. 

According to Reuters, Tesla is offering discounts due to heavy production from its factories in Germany and China. During the first quarter of this year, Tesla had around 15 days of global inventory which is much lower than the industry average of 35 days in the US. However, it is the highest global inventory the company has had in around 3 years.

Tesla is also facing the issue of slowing demand and the company produced more cars than it sold in the first quarter of this year. The sluggish demand along with rising inventory could have forced the company to offer steep discounts. 

Hinting at the reasoning behind price cuts, Tesla CEO Elon Musk at the shareholders meeting last week said, "We see what the demand is and then we adjust pricing to meet the demand,"

However, this is not the first time Tesla is offering discounts on its cars this year. The company has offered discounts in many markets this year in a bid to clear up its stocks. 

Shortly after the shareholder meeting, Musk said in an interview with ABC News that he could try advertising Tesla cars for the first time while warning that it could be a tough 12 months for the company.

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Published: 23 May 2023, 06:33 AM IST
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