After temporarily cutting Model Y prices over the weekend, Tesla, Inc. (NASDAQ:TSLA) raised the price of the Long Range (LR) variant of its new Model 3 sedan in the U.S. by $500 late Tuesday.
What Happened: A Model 3 LR variant in the U.S. will now cost $47,490, marking a back-to-back price hike from earlier this month when it increased by $1,000. Tesla investor and influencer Sawyer Merritt first spotted this update.
Additionally, the delivery lead time for the Model 3 LR has been pushed back from March-April to April-May. Typically, extending lead times indicates increased demand for a product.
This price hike puts the Model 3 LR almost at par with the corresponding Model Y variant. Notably, on Saturday, Tesla temporarily reduced the price of the Model Y LR by $1,000 for a month, bringing the current price to $47,990 until the end of February. After factoring in the $7,500 EV tax credit, the Model Y LR becomes $44,390, cheaper than the new Model 3 LR.
Furthermore, Merritt highlighted that purchasing an existing Model Y LR inventory vehicle (with the tax credit) proves even more economical compared to the custom-made Model 3 LR, coming in roughly $1,000 cheaper.
See Also: Everything You Need To Know About Tesla Stock
Why It’s Important: While Tesla engaged in aggressive global price cuts throughout 2023, it tapered off towards the year’s end. These reductions proved ineffective in boosting sales as intended and instead eroded margins and profits.
Now, in 2024, the Elon Musk-led company is again experimenting with price adjustments, but through a series of intermittent cuts and raises. This strategy coincides with Tesla’s stock price remaining stagnant in a depressed trading range since mid-2023, partly due to recent inflation concerns.
On Tuesday, Tesla fell 2.18% to $184.02, according to Benzinga Pro data. The weakness was in part due to hotter-than-inflation data.
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