Tesla offers big discounts on its Model 3 and Model Y electric vehicles (EVs) as the company fears demand is slowing down.
Key Details
- Tesla is offering a $7,500 discount and 10,000 miles of free Supercharging for any Model 3 or Model Y delivered between December 21 and 31, 2022.
- Customers purchasing a Model S or Model X will receive the 10,000-mile charging credit but not the large discount.
- Tesla initially offered a discount of $3,750 but increased it with hopes of selling more cars before the end of the year.
Why it’s news
Discounts are common in the auto-sales industry, but in the last few years there has been a shortage of cars and dealers have cut back on discounts.
Tesla CEO Elon Musk has said for years that his company stands out because it doesn’t use traditional marketing tactics to sell cars—the vehicles sell themselves. Now, Tesla stands out because it is one of the only companies having to offer discounts.
Tesla is offering a $7,500 discount and 10,000 miles of free Supercharging for any Model 3 or Model Y delivered between December 21 and 31, 2022, in a strategy to get cars out the door.
Tesla stock has fallen more than 60% this year as more EV manufacturers have gained popularity, and people feared the future of Tesla as Musk has had his hands full with his Twitter takeover.
Many luxury car companies try to avoid offering discounts with fears of hurting brand reputation and making demand decline, but Tesla has already been faced with declining demand and is trying to get more cars on the road.