Tesla has slashed prices on its popular car models in the United States in response to missing delivery targets for the third quarter, according to Bloomberg.
The base Model 3 now starts at $38,990, a $1,250 reduction. The long-range Model 3 is also discounted by $1,250, now priced at $45,990.
Tesla has applied price cuts to several models: the performance Model 3 is reduced by $2,250 to $50,990. The long-range and performance versions of the Model Y SUV are now $2,000 cheaper, priced at $48,490 and $52,490, respectively. Additionally, Tesla reintroduced a more affordable version of the Model Y recently.
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Tesla's stock dipped by 1.6 percent at 5 AM New York time on Friday before regular trading hours. This year, the company's stock value has more than doubled.
Factory shutdowns hit Tesla's third-quarter deliveries
Tesla delivered 435,059 vehicles in the last three months, falling short of analysts' expectations by about 20,000 units and below the previous quarter. To meet its annual goal of 1.8 million cars, Tesla needs to deliver over 475,000 additional vehicles.
Lowering prices aims to boost sales but may impact profitability. CEO Elon Musk has downplayed profit concerns, suggesting future revenue could come from software updates. However, his previous predictions about Tesla cars becoming fully autonomous through software updates have not materialized.