Price Chopper: Tesla Sinks Stickers As U.S. Factory Comes Back Online

Steph Willems
by Steph Willems
price chopper tesla sinks stickers as u s factory comes back online

Hoping to reduce the coronavirus pandemic’s strain on its balance sheet, Tesla slashed prices on three of its four models on Wednesday. While the company posted a surprise first-quarter profit last month, no one expects Q2 to be similarly rosy.

Tesla only recently fired up its Fremont, California assembly plant amid a cloud of threats and a lawsuit targeting Alameda County officials. With sales severely hampered by both the weeks-long shutdown and state-level stay-at-home orders, getting new Teslas out of the factory and into driveways becomes even more important than it was before. Perhaps consumers respond well to lower prices…

As reported by Reuters, J.D. Power data suggests Tesla sales sank by half in April on a year-over-year basis. The push is on to recover its customers and restore its revenue flow.

Both the Model S and Model X, each a declining presence in the automaker’s portfolio, see their entry prices slashed by $5,000 — now coming in at $74,990 and $79,990, respectively. Pricier Performance versions see a similar $5k cut. Forget about that complimentary free Supercharger access, however.

The brand’s bread and butter, the Model 3, comes away with a smaller price decrease on the Standard Range Plus (the de facto entry-level model, given that the Standard Range was a ghost from the outset). That model’s price sinks two grand to $37,990.

Tesla’s newest model, the Model Y crossover, sees no change in price.

Overseas, a Chinese social media post spotted by The Verge suggests similar pricing reduction are in store for Model S and X customers in that market, though the Model 3, which rolls out of Tesla’s new Shanghai assembly plant, will see its recently reduced price remain stable.

[Image: Tesla]

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  • ToolGuy ToolGuy on May 27, 2020

    Model T runabout price was reduced from $900 in 1910 to $345 in 1916. Volume went from 19,050 in 1910 to 501,462 in 1916. [In 1925, price was $260 and volume was 1,911,705.]

  • Mcs Mcs on May 27, 2020

    @steph: "(the de facto entry-level model, given that the Standard Range was a ghost from the outset)." That's totally untrue. Edmunds just did a review on one and they were able to order it. You'd think before someone would write about an auto company that they'd actually take the time to learn what it has for a product line. There's a chance it could cost even less than $35k now since it's a Model 3 Standard Plus that has features deleted. Here's the review:

    • HotPotato HotPotato on May 29, 2020

      Nah, the base-model 3 is still basically a ghost. Not only is it not on the website (you have to call Tesla or get a showroom employee to help you order it), but here's the thing: they play games with lease money factors, residuals, and purchase interest rates so that unless you're a cash buyer, your $35k base Model 3 comes out to be MORE expensive than a Standard Range Plus. Apparently getting rid of dealerships doesn't get rid of dealer-style shenanigans.

  • Indi500fan Indi500fan on May 27, 2020

    Musk's "alien dreadnaught" and the new Chinese "pouch" batteries continue to hammer down costs. Quality is still a bit suspect though, I just saw a pic of a 3 month old Model Y rear hatch that was rusting like a 71 Vega cowl.

    • See 2 previous
    • HotPotato HotPotato on May 29, 2020

      The crazy thing is, the fully robotized factory floor was a train wreck and had to be swapped for actual workers, so no savings there. And the CATL pouch batteries are for Chinese market base model 3's only, so far. So they're doing this within their existing cost structure. It's a bit surprising, too. You'd think from all of Musk's hysterics that after lockdown there was a massive backlog of orders for Fremont to fill, not a surplus of inventory cars for them to clear. Gonna head over to their website and see if the lease on a SR+ Model 3 has become more attractive. :-)

  • JPWhite JPWhite on May 27, 2020

    With one month to the end of the quarter they want to sell as many cars as they can make. Model Y is well back-ordered so no price change there. Other models have been on the market for years now so a little price reduction will ensure every car made is spoken for. I'm waiting for a price reduction on Acceleration Boost. Ready to give you my dollars Elon!