Tesla doubles discounts on Model 3 cars in US inventory

By Hyunjoo Jin

SAN FRANCISCO (Reuters) – Tesla (NASDAQ:) Inc has doubled discounts on some already made new Model 3 electric cars and offered discounts on the Model Y and others in its U.S. inventory to entice buyers amid economic uncertainty, rising competition and the upcoming redesign of its mainstay model.

In California, a Model 3 variant in inventory was priced at $42,060, a discount of $2,680 to the price of newly ordered cars, according to its website. That is double the $1,300 discount on Model 3 cars offered less than two weeks ago.

Tesla also resumed discounts on some Model Ys of nearly $600 off each. Tesla offered steeper discounts of $6,330 and $5,000 on some higher-priced Model X and Model S vehicles, respectively.

Facing economic headwinds, mounting competition and rising production, Tesla this year has aggressively cut vehicle prices in many countries and is resorting to the traditional automakers’ tactic of offering incentives to clear inventory, analysts said.

Tesla is preparing to launch a revamped version of its Model 3 in the United States this year and has started shipping some of its Model Ys with new hardware for its Autopilot partially automated driving system.

Tesla CEO Elon Musk told shareholders this month that the company would try advertising for the first time, in a move seen by analysts to drum up demand. Musk also warned Tesla was not immune to the global economy, which he said will be difficult for the next 12 months.