Tesla started selling these models at a loss

Tesla is offering a significant price cut for the Model Y to help clear its stockpile of unsold electric vehicles in the United States.

If you are an electric vehicle enthusiast, this news will surely interest you. Here are all the details…

Tesla to sell its overstock vehicles at a loss

In the first quarter of 2024, 46,561 more Model Ys were produced than delivered. In response to this drop in demand, Tesla reduced the price of the rear-wheel drive version of the Model Y by $4600 and the price of the Long Range and Performance models by $5 thousand.

Tesla started selling these models at a loss
Tesla is cutting prices on the Model Y to reduce a surplus of unsold vehicles (Image credit)

To stimulate sales, Tesla is offering drivers advanced driving assistance features such as automatic lane changing, automatic parking, and automatic stopping at traffic lights. The feature is available to drivers with the Full Autonomous Driving beta.

Tesla’s sales growth 2024 is expected to be lower than in previous years.

Tesla CEO Elon Musk has started mandating demos of the company’s advanced driver assistance system for all potential buyers. It can be interpreted as a move by Tesla to increase sales of this system and maintain its leading position in the electric vehicle market.

Tesla started selling these models at a loss
Tesla produced 46,561 more Model Y vehicles than they sold in the first quarter of 2024 (Image credit)

Tesla’s Model Y price cuts can be interpreted as an indicator of developments in the electric vehicle market. The reductions may indicate that interest in electric vehicles is waning, and Tesla needs to adopt a more aggressive pricing strategy to maintain its market share.

Featured image credit: Vlad Tchompalov / Unsplash

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