Tesla prices go up AND down for the fourth time in a month
When we’re talking about pricing of Tesla automobiles, it seems you can’t follow the action without a scorecard.
For the fourth time in about a month, Elon Musk’s up-and-down strategy is once again in play, with the price of the base Model 3 just now decreased by $500, so that it’s starting at $42,990. (With destination and ordering fees, it’s $44,630.)
But wait, there’s more: According to Tesla’s website, the Model Y Performance version now starts at $58,490 (before fees), which is $500 more than before ($57,990).
A month ago, Tesla lowered the cost of the cheapest Model Y by 20% and lopped as much as $21,000 off its most expensive vehicles in its home market. Tesla also made major reductions in countries including Germany, the UK and France a week after its second round of cuts in China since October.
All this might seem erratic, but there’s undoubtedly a strategy behind it. Regarding the price drop for the Model 3, speculation is that Musk is in the process of updating or refreshing that car. Camouflaged versions have been spotted testing on California roads, and the cars are expected to feature Tesla’s new “Hardware 4” suite of sensors and computers for Autopilot and “self-driving.”
As we reported recently, changes reflect the conundrum Tesla faces after having come up well short of its target for annual vehicle deliveries, despite year-end discounts and incentives that Musk had sworn off in the past. Price increases at Tesla generally signify that demand is up for a certain model,