Tesla tweaked the price of a Model 3 trim in the U.S. Thursday night, making the vehicle slightly more expensive even as it offers discounts on two Model Y variants through February as the EV giant continues to adjust pricing based on supply and production. TSLA shares edged down Friday.
Tesla increased the price of its Model 3 Long Range in the U.S. by $250 Thursday, bringing the price to $47,740. Back on Feb. 10, Tesla announced limited-time discounts for Model Y variants.
The base Real Wheel Drive Model Y is getting a $1,000 discount, to $42,990, but the new owner must take delivery by Feb. 29. The All Wheel Drive Model Y also has been reduced by $1,000, to $47,990. The Model Y Performance was unchanged at $52,490. Model Y inventory is offered at much lower prices.
All of that is before federal tax credits of $7,500 for the Model Y.
The updated Model 3 is no longer eligible for federal tax credits due to stricter battery sourcing requirements. That means the Model 3 is often substantially more expensive than the Model Y.
While the Tesla Model Y discounts officially end after Feb. 29, it's possible that they could be extended, or made permanent. Tesla typically ramps up incentives at the end of the quarter. On Feb. 8, Tesla revived an offer to let Full Self-Driving owners to transfer their FSD rights to a new Model 3, Y, S or X, with delivery taken by March 31.
Troy Teslike, whose delivery estimates and Tesla data tracking are highly respected among retail Tesla investors, posted on X Friday that Tesla is "trying to discourage people from ordering a Model 3 version they can't produce while there is plenty of Model Y inventory waiting for buyers."
U.S. delivery dates for the updated Model 3 Long Range have been pushed back to April-May. That reflects in large part limited initial production at Tesla's Fremont plant.
Tesla Stock
Tesla stock dropped 2.8% to 191.97 during Friday's market action. On Thursday, TSLA shares angled 1.4% higher to 197.41 as EV startups Rivian and Lucid cratered on earnings and 2024 outlooks.
Tesla stock fell 3.87% on the week, breaking a string of three consecutive weekly gains.
In 2023 Tesla doubled, easily outperforming the broader S&P 500 index, but shares have trended lower since late July. Tesla stock ranks eighth the 35 member IBD Auto Manufacturers industry group. The stock has a 43 Composite Rating out of a best-possible 99. Tesla stock also has a 22 Relative Strength Rating and a 69 EPS Rating.
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