TSLA: Tesla Slashes US Prices as Investors Fret Over Skewed Profit Margins

Model 3 and Model Y are now more affordable in the US, following the latest price-slashing round amid raging EV wars.

• Tesla lowered the prices of its Model 3 and Model Y vehicles in the US in the latest bid to compete better in the raging EV war globally. The Model 3 rear-wheel drive will run you $38,900, down from $40,240. The higher-tier long-range and performance versions of the same model were slashed as well.
• The Model Y makes were also tweaked in price with the long-range vehicle now going for $48,490 from $50,490. The price cuts followed Tesla’s deliveries report, which said it shipped 435,000 cars in the third quarter, falling short of Wall Street’s reduced consensus call for 450,000. On the one hand, Tesla’s new prices will boost delivery numbers. But on the other hand, they will skew profit margins.
• Investors were quick to react to the latest effort to reduce prices, sending Tesla stock TSLA down 3% on Friday, ahead of the bell. Shares, however, erased the early-trading losses and logged a winning regular session. Tesla stock is up more than 140% this year.