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Tesla Implements Traditional Automaker Strategy with Discounts

Breaking away from its norm, Tesla steps into the traditional automaker's shoes by offering significant discounts on older models. The electric vehicle pioneer doubles down on Model 3 price cuts, hinting at a strategic shift amidst increasing competition and economic uncertainty. As new models await on the horizon, will Tesla's transition bring a surge in sales?

Tesla, the pioneering electric vehicle manufacturer, has begun offering discounts on its older models. This is a common strategy among traditional automakers who provide incentives to sell older stock and make room for new models. This move by Tesla seems to contrast with their previous approach, positioning themselves as distinct from other car companies.

Tesla’s Deviation from the Norm

Tesla, led by CEO Elon Musk, has often stood out in the automotive industry for not conforming to standard practices. Unlike other automakers, Tesla does not follow the concept of model years. Instead, they deliver updates to their vehicles over-the-air, ensuring customers always have the latest version. However, this recent move of offering discounts signals a shift towards traditional automaker practices.

Increasing Discounts on Model 3 and Other Variants

According to a recent Reuters report, Tesla has started offering significant discounts on certain models, notably the Model 3. The company has doubled its discount on some new Model 3 units, while also extending discounts to the Model Y and other models in the U.S inventory. This move comes as a bid to entice buyers amidst economic uncertainty, increased competition, and ahead of an anticipated redesign of its core model.

Notable Price Cuts and Discounts

In California, a Model 3 variant listed in the inventory was offered at $42,060, down $2,680 from the price of newly ordered cars. This is twice the $1,300 discount offered on the Model 3 less than two weeks ago. These price cuts and discounts come as Tesla faces economic challenges and increasing competition, and shows signs of adopting more traditional automaker strategies.

Upcoming Model Changes and Potential Sales Event

The report also notes that Tesla plans to launch a new Model 3 later this year. Additionally, some changes are expected in the Model Y, with new hardware or similar updates. With the ongoing price adjustments, there could be an opportunity for customers to get a different Model 3 or Model Y in the coming months. This leads to speculation that Tesla might soon introduce an annual sales event, just like traditional automakers.


• Tesla has started implementing traditional automaker strategies by offering significant discounts on older models, particularly the Model 3, to clear out inventory and make way for newer versions.

• Despite the company’s innovative practices like over-the-air updates and not following traditional model years, these recent discounts show Tesla adopting tactics similar to other automakers, indicating a shift in their strategy.

In addition to the Model 3 discounts, Tesla is planning to launch a new version of this model and has hinted at updates to the Model Y. These changes, coupled with ongoing price adjustments, suggest that Tesla may be considering an annual sales event akin to traditional automakers.

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