tesla cuts the price of its model 3 again: electric car maker slashes $1,100 off its most affordable vehicle in second cost reduction this year as production finally ramps up - energy storage companies
A company spokesman said Wednesday that Tesla, an electric-car maker, lowered the price of its Model 3 by $1,100, citing the end of an expensive customer referral program.
According to the company's website, the second price cut for Model 3 this year now reduces the cost of its cheapest variant to $42,900.
The Tesla customer referral incentive program ended on February.
After a tweet from chief executive Elon Musk said the recommendation plan "added too much cost to cars, especially Model 3.
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It is expected that the Model 3 sedan will be launched in the fourth quarter, and its prices for all vehicles in the United States will be lowered to offset the reduction in the green tax credit.
Musk has been under tremendous pressure to deliver on his promise to stabilize production for the company's mass market sedan, which is essential to ease cash shortages and achieve long-term stability
Profitability.
The company is rapidly increasing the production of its Model 3 sedan, and lower prices may help it gain a wider customer base than pure luxury cars.
The latest price cut came after a series of price cuts announced last month by Tesla, when all three of its models were down $2,000.
Tesla said at the time that it would help make up for the loss of the $7,500 federal tax credit, which was reduced to $3,750 in January and will gradually be zero by the end of 2019.
Last year, Tesla reported that it produced 254,530 cars and SUVs and delivered 245,240 vehicles last year.
In January, the company said it produced nearly 1,000 Model 3 a day, basically in line with Musk's promise, but slightly below Wall Street's expectations.
Just this week, it was revealed that Tesla had agreed to buy energy storage company Maxwell Technologies Inc. for $0. 218 billion . .
Stock trading that can help the electric car manufacturer make better batteries.
The acquisition could lead to power batteries having more energy and lasting longer when they need to cut costs and face increasing competition.
On January, executives at Maxwell told investors that the company had developed and obtained a patent for a "dry battery" technology that could significantly increase the battery life of electric vehicles and reduce electric power.
Maxwell said in a report that it is expected to build a strategic alliance around the technology within six months.
The company also produces super capacitors, which release energy faster than the battery and is considered a complement to battery technology.
The super capacitor, combined with the energy of the battery, enables fast response times, works over a wider temperature range, and doubles battery life, according to a blog post on the Maxwell website.