Tesla Model 3 Demand Spikes In Japan Following 25% Price Slash

Has Tesla Inc TSLA recent price slashes in the Japanese market played out in a way your college Economics 101 professor would be proud of?

What Happened: According to a recent report by Automotive News, the Model 3 has received significant price slashes in the neighborhood of 25% for the Japanese market. Full pricing information is provided below.

(Pricing on the Performance Model 3 remains unchanged.)

For readers unfamiliar, the law of demand states if a firm raises prices on a given good or service, the demand for said good or service shrinks. 

Meanwhile, all else equal if prices decrease, the quantity of a good thereby increases. In other words, price and quantity demanded have an inverse relationship.

All this being said, a report from Teslarati highlighted Model 3 delivery estimates in Japan have been pushed back to three to four months, a staggering increase in expected wait time from the prior six- to eight-week window.

This delivery data suggests, at minimum, interest in the near-term for Tesla's entry-level EV has spiked.

Why It Matters: Official sales numbers from Japan in February are not available, but Elon Musk’s Tesla really needs all the help it can get to spur demand in Japan.

Automotive News notes Tesla sold less than 2,000 units in the country in 2020, a drop in the bucket as Musk seeks to sell 20 million EVs globally by 2030.

Price Action: According to data from Benzinga Pro, Tesla shares ended down about 4% on Friday, ending the after-hours session at $596.25. 

Tesla shares are trading lower in sympathy with the overall market amid continued concerns over increased bond yields, which have heavily impacted stocks across sectors.

The stock has a 52-week high of $900.40 and a 52-week low of $70.10.

See Also: How To Buy Tesla Stock.