Tesla reduces the price of the Model 3 sedan and Model Y SUV

Date:19 February 2021 Author: Kyro Mitchell

In a bid to keep its sales figures up, Telsa will be reducing the asking price for the entry-level Model 3 sedan and Model Y SUV, while also increasing the price of the performance variants for both vehicles, according to Reuters.

The new price of the Model 3 sedan is now R538,000 (previously R552,000), while the Model Y SUV is now R580,000 (previously R610,000). Tesla hopes these slight price reductions will help the company reach its goal of selling 500,000 vehicles in a calendar year. The EV maker fell short of this target in 2020, with 499 550 vehicles sold last year.

The company does however still need to make money, that why it has decided to raise the price of its less popular, but more powerful vehicles. The performance variant of the Model 3 will now set customers back R814,900 (previously R800,400), while the performance version of the Model Y will now cost R887,500 (previously R872,900).

Tesla has yet to provide an official reason as to why it has reduced the price of these vehicles and seeing as the company no longer has a dedicated PR team, don’t expect a statement from the company anytime soon. Although the strategy behind the move is quite clear to see. The company is desperate to keep growing its sales figures – to reach the elusive goal of selling 500,000 in a year – and the best way of doing that is to make your cheapest car even cheaper.

Picture: Unsplash

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