Tesla Offers Deep Discounts On Inventory Model 3 EVs In US, Canada Even As Stock Stutters Amid Price Cuts

Zinger Key Points
  • Tesla stock is trading well off the post-earnings level amid investor backlash over the company's aggressive price reductions.
  • The company has once again lowered Model 3 prices by deeply discounting inventory vehicles in the U.S. and Canada.

Tesla, Inc. TSLA is at it again as the electric vehicle pioneer reportedly took down inventory Model 3 vehicles in the U.S. and Canada notably even as it prepares to launch a refreshed version.

What Happened: Tesla's Model 3 inventory vehicles have been discounted by $3,000-$5,000, Drive Tesla Canada reported. The company now offers a $3,700 discount on the rear-wheel drive variant, and when applying the discount, the prices in some areas were as low as $37,490, it said.

With the $7,500 tax credit, the Model 3 inventory vehicle is now under $30,000.

The discount on the all-wheel drive, long-range variant is about $5,000. The discounting assumes importance as Tesla is set to begin deliveries of its Model 3 refresh anytime soon, the report said.

Tesla has also discounted Model 3 vehicles in Canada by about C$5000 to C$7,000, the report added.

See Also: Best Electric Vehicle Stocks

Why It's Important: After sharply lowering vehicle prices at the end of the second quarter in a big quarter-end push, Tesla continued the discounts into the third quarter.

The company recently lowered configurator prices of Model S and X vehicles in China and also reduced prices of Model Y Long Range and Performance versions.

Tesla stock has been stuck in a rut ever since the company reported its second-quarter results. Investors are worried about the margin impact of the string of price cuts and discounts. As the company keeps lowering prices, they also fear that potential buyers may hold off on buying.

Aggressive price reductions also send a signal that the company is facing a demand problem.

Tesla ended Wednesday's price down 0.11% at $256.90, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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