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Tesla Cuts Prices Of Base Variants Of Model 3, Model Y

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Electric carmaker Tesla Inc has cut the price of its base variants of the Model 3 sedan and the Model Y sports utility vehicle or SUV, Reuters reported. However, the prices of the company's performance variants have been increased.

Tesla's Model 3 Standard Range Plus is now priced at $36,990, lower than previous price of $37,990. Further, the Model Y Standard Range's price is now at $39,990, compared to $41,990 priced earlier.

The prices for the Performance variant of the Model 3 increased to $55,990 from $54,990 and Model Y to $60,990 from $59,990, the reported noted.

While announcing its fourth-quarter results in late January, Elon Musk's luxury car company had stated that vehicle average selling price declined 11% due to product mix shifting from Model S and Model X to the more affordable Model 3 and Model Y. Model 3 sedan is Tesla's least expensive car.

The Palo Alto, California-based company delivered 161,701 Model 3/Y to customers in the fourth quarter, up 75% from last year, while Model S/X deliveries were 18,966, down 3% from last year.

In the year 2020, Tesla had delivered about 499,550 vehicles, beating analysts' expectation of 481,261 vehicles. But the deliveries slightly missed the company's guidance of 500,000 vehicles. The annual vehicle deliveries increased 36 percent from 2019. In 2020, the automaker had produced 509,737 vehicles.

Tesla, which joined the Standard & Poor's 500 Index on 21st December, expects to achieve 50% average annual growth in vehicle deliveries over a multi-year horizon.

In a recent Brand Finance Global 500 2021 ranking by London-based Brand Finance, Tesla's brand value was up 158 percent to $32.0 billion, the fastest growing brand.

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