Tesla announces price cuts for 3, Y models in attempt to reach yearly sale targets

Tesla has reduced the prices of its affordable Model 3 compact sedan and Model Y SUV in the United States, intensifying its pricing strategy shortly following news of its third-quarter deliveries having fallen short of market expectations.

According to the Wall Street Journal, these price reductions are part of Tesla's efforts to achieve its goal of delivering a record 476,000 vehicles in the final quarter of 2023, aiming to meet its annual target of 1.8 million vehicle deliveries.

Tesla had initiated price cuts back in January, aiming to stimulate sales during uncertain economic conditions and to stay competitive in the face of increasing competition from US automakers like Ford and Chinese automakers like BYD.

As a result of the recent changes, the standard Model 3 sedan is now $1,250 cheaper, priced at $38,990, while the long-range Model Y variant costs $2,000 less, with a price of $48,490, as indicated on Tesla's website.