On Tesla Inc's (NASDAQ: TSLA) website, the Model Y price has dropped by $3,000, now starting just below $50,000. This comes at the start of the third quarter, as the company continues to ramp up production of the all-electric crossover vehicle.
Tesla has a history of reducing vehicle prices over time. Tesla's flagship Model S and X vehicles have had thousands of dollars of price drops over the years, and even the Model 3 was included in a price drop back in May. This sometimes leaves owners frustrated, although changing and lowering car prices isn't new to Tesla.
Benzinga's Take: While many will speculate this shows decreased Model Y demand, this hasn't usually been the case in past price drops, especially when looking at the Model 3.
Tesla's mission is to transition the world to sustainable transport, and one of the best ways to do that is to make its highly desired products more accessible by lowering the price. As Tesla becomes more efficient with its vehicle production, it can maintain its high margins while lowering prices for the customer.
Photo courtesy of Tesla.
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