Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Tesla slashes Model Y SUV price as pandemic weighs on auto sector

Published 07/11/2020, 06:03 PM
Updated 07/12/2020, 05:25 PM
© Reuters. The Tesla logo is seen on a car in Los Angeles

(Reuters) - Tesla Inc (O:TSLA) cut the price of its sport utility vehicle Model Y by $3,000, just four months after its launch, as the U.S. electric carmaker seeks to maintain sales momentum in the COVID-19 pandemic.

The reduction follows price cuts in May on Tesla's Model 3, Model X and Model S.

The company headed by Elon Musk this month posted a smaller-than-expected fall in car deliveries in the second quarter, resilient results despite the pandemic that hit the global auto industry.

The Model Y now starts at $49,990, down nearly 6% from its previous price of $52,990, according to the carmaker's website.

Tesla did not immediately respond to a Reuters request for comment.

The company started deliveries of the Model Y in March, promising a much-awaited crossover that will face competition from European carmakers like Volkswagen AG (DE:VOWG_p) rolling out their own electric rivals.

© Reuters. Tesla Inc CEO Elon Musk attends an opening ceremony for Tesla China-made Model Y program in Shanghai

In April, Tesla had said the Model Y was already profitable, marking the first time in the company's 17-year history that one of its new vehicles turned a profit in its first quarter.

Latest comments

$nio will follow....
I remeber aol looks like tesla is same bet
Fake stock with no pe just hype joke
At this point just give the cars away.  The market only cares about deliveries , not sales.  Increase deliveries to 500,000 and the company will be worth $500 billion. Start buying up competitors and last man standing becomes Chairman of the Communist Party.
Jay you been looking at the auto industry for a while now you know your way around it lol well if you were Elon and owned Tesla you would have been looking at a trillion by 2025 !!!
Theres no way people are or will venture out to buy Tesla models in avpsndemic.
There are people who earns even more money because of this padenmic and I have seen them buying cars and houses
Elon said you’re wrong Jeff.
Do you really need that as an excuse to avoid this trash.
Finally Tesla is more about Tesla(automaker) than tesla stock..back to earth Musk.  I like the guy wish him the best.
If I was a day trader I would short monday, tuesday, and get out Wednesday morning.f it I'm going to do it
you will miss the chance and buy it back even higher price. but good luck
 I would go short for a couple months, rather than a couple days...after all bankruptcies, job loss
Jeez, in a bubble you think?
reminds me of GoPro hype. both are apple to oranges in terms of product but I am only talking about irrational euphoria.
TSLA is supposedly doing so great the price has gone up 1000% in a year to a market cap of over $250 billion. they sold 90k cars, which is about $3 million market cap per car....and they are having to slash car prices due to economic issues? wallstreet math right there
Lol thats 3.6 billion in sales
It is just part of a big short squeeze scam; remember, they are funded by the fed who also wants the market up, along with Trump. Notice the fed and trump's little sound bites when any sign of it dropping. They have so much liquidity that the institutions, banks, etc. can short squeeze all of us to ******** bankrupt and homeless. They see the orders and took the opportunity to wipe out many and make billions.
Did you use the term “Short Squeeze” correctly?
Tesla cars demand is way high so he is slashing price so more people can buy cars. Target $150 up again
Think of the logic in that statement. You are arguing that demand is high for Tesla vehicles so Tesla is slashing prices to increase demand. That's not how this all works. If prices are being slashed, it means demand is stalled which means that they may miss the lofty sales targets the market is hoping for.
LoL
I think he's trolling. lol.
It is important for Tesla to decrease it stock price a bit before the earnings date, because right now its RSI is 86 so is unlikely that the stock price reaches 2000 before tesla´s earnings.
News is good for tesla to go green in the morning. It doesn't matter if the vehicle is overpriced, algos are seeing a positive news article. Thats good enough to buy stock these days.
For the price of a Y, i'll buy a Tahoe.
Or a Hilux
Should be good for +500 points in premarket...
At least. OTOH, Tesla was $374 in March. When the markets crash, ALL stocks fall.
Id say down 250 at open
The prices are being cut not to maintain sales momentum but because they can make the vehicles for less due to efficiency of manufacture so they transferring the savings to customers unlike the bigger car manufacturers who would simply pocket the savings.
I didn’t know Tesla it’s a non-profit organization.. More likely it’s because of the increasing competition and if you look at Toyota and VW EVs you can easily understand that Tesla’s dominance of the market is now seriously under threat. Of course I’m with Tesla, the real game changer!
If history serves, no one will have heard of Tesla by the time it’s value would have matched it’s valuation. You are buying the sizzle, enjoy the feeling.
I do believe Tesla is overpriced. The entire market has been pumped by the Fed for what? Now that we’re back to pre-Covid values (approximately) what Fed will decide to do? Recovery is far and will take years to reach 2019 levels.
what a bargain!
Bargain? ICE SUVs of camparable size are half the cost...you will never make up the fuel cost difference, not even if you run the gas vehicke for 300k miles...which, nobody does.https://www.hyundaiusa.com/us/en/suvs
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.