Tesla Chief Executive Elon Musk is always considering approaches to marketing his industry-leading company's electric vehicles.
The Austin automaker is striving to meet its 1.8-million-vehicle delivery goal for 2023 after delivering about 889,000 EVs in the first half. The company delivered 1.31 million vehicles in 2022, which was a 40% increase over its 2021 performance. To reach or beat Tesla's (TSLA) -) goal, the company would probably need to ramp up its sales pace a little bit.
Musk in April released Tesla's Master Plan 3, whichsuggested the company was developing three new vehicles. The first appeared to be a compact car, while the others were believed to be a van and a bus. The compact car didn't have a name yet, but it appears to be much cheaper than Tesla's least expensive vehicle, the Model 3 sedan.
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Those three vehicles might be essential for Tesla in generating future sales years down the road.
But for the present, Tesla is hoping to energize its sales when it delivers its new Cybertruck pickup, likely in September. The EV's orders might get backed up for awhile as back on Nov. 24, 2019, Musk said the Cybertruck had 187,000 orders just five days after the vehicle was unveiled.
Tesla
Tesla cutting prices of models
Musk's strategy to increase sales began with reducing prices on its vehicles in China back in October 2022. And this year, Tesla has been cutting the prices of many of its vehicles. The Model 3 started the year at about $46,990 before a reduction to $43,990; now the vehicle is currently priced as low as $32,740 after the federal tax credit, according to its website.
The company in March reduced the price of the Model S high-end sedan from $104,9090 to $89,990 and later adjusted the priced to $88,490. That same month, Tesla slashed the price of the Model X full-size SUV to $109,990 from $120,990, before reducing it further to $98,490. Tesla has reduced the price of the world's top selling vehicle, the Model Y midsize SUV, about 24% since the beginning of the year.
Tesla launches lower-priced Model S, Model X
Tesla hopes its latest strategy will lure more consumers to buy its cars. On Aug. 14 it unveiled new standard-range versions of the Model S and Model X with significantly lower prices in exchange for shorter driving ranges. The company has offered only long-range and Plaid versions of the Model S and Model X since it updated the vehicles in 2021.
The significant incentive for consumers will be a $10,000 reduction in the price of the vehicles, with the Model S sedan dropping from $88,490 to $78,490 and its range decreasing from 405 miles on a charge to 320 miles, Electrek reported.
The Model X SUV price will decrease from $98,490 to $88,490, and its range will drop from 348 miles on a charge to 269 miles. Both models will use the same long-range battery pack, but the capacity will be software-locked.
The company is expected to begin deliveries of the new Model S and Model X in September.
