Tesla, Inc.'s TSLA second-quarter deliveries outperformance was in part attributed to the electric vehicle maker's price cuts and other promotional measures, including inventory vehicle discounting and limited-period free Supercharging.
It appears the Elon Musk-led company is continuing with the aggressive pricing strategy into the third quarter.
Tesla reduced prices of its Model 3 and Y EVs in Japan by low single-digit percentages, beginning in July, Reuters reported. All variants of Model 3 EVs have seen prices lowered by 3% and the prices of Model Y variants were lowered by 4%.
Tesla reportedly said the Model 3 is now more affordable in Japan than ever before when using various subsidies.
See Also: Best Electric Vehicle Stocks
Tesla's Japanese website showed that the base Model 3 variant now has a pricing of 5,245,600 yen ($36,358), while the Model Y rear-wheel drive vehicle, which is the base model, is priced at 5,637,000 yen.
Incidentally, the EV maker raised prices in Japan in early May, as the company began reversing the price cuts in early 2023.
Why It’s Important: While investors expected Tesla to stall the price cuts and promotions in the new quarter, the company continued with price reductions in countries such as China and Canada. This will likely stir anxiety concerning demand and margins ahead of the company’s earnings report due on July 19.
In premarket trading, Tesla stock was down 0.60% at $278.14, according to data from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
