Tesla has reduced the prices of its Model 3 compact sedan and Model Y SUV in the United States as it aims to meet its delivery targets for the year. The price cuts, ranging from 2.7% to 4.2%, began in January in an effort to boost sales and compete against rivals such as Ford and BYD. However, concerns have been raised about the effect of these price cuts on Tesla’s margins, which already reached a four-year low in the second quarter of this year. Tesla is expected to release its third-quarter earnings on October 18.

Summery :

– Tesla has cut prices of its Model 3 and Model Y vehicles in the US.
– The price cuts aim to support sales in an uncertain economy and fend off competition from US and Chinese automakers.
– Tesla shares fell amid concerns that the cuts will impact the company’s margins.
– The standard Model 3 sedan is now $1,250 cheaper, while the Model Y long-range variant costs $2,000 less.
– Overall, the prices of the Model 3 have come down by 17% since the start of the year, and the Model Y long-range variant has seen a drop of over 26%.
– The price cuts will also put pressure on traditional automakers dealing with a strike by autoworkers’ union.
– Tesla is expected to report third-quarter earnings on October 18, with analysts predicting a drop in automotive gross margins.

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