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- After last week's price drops, interest in Teslas has risen on Edmunds car-shopping site Edmunds.
- Analysts recommend that you act quickly to secure Tesla deals before they disappear.
- Tesla's pricing war seems to be paying off.
According to Edmunds data, Tesla's price reductions are attracting more buyers.
Edmunds discovered that after Elon Musk's automaker reduced the price of its most sought-after vehicles last week, there was a surge in on-site interest from the EV-maker’s cars.
The Model Y, which received a 20% price reduction, was the second most-researched car last week. It had been 70th the week prior. Edmunds' website now lists the Model 3 at $43,990, which is up 36 places from the previous week.
Edmunds analyst Jessica Caldwell said in a Thursday note that price cuts and inventory on-the-ground will help Tesla win market share and help consumers forget about the brand's ageing lineup. The American consumer loves lower prices and instant availability.
Caldwell also noted that Tesla's price reductions come at a time where shoppers are still struggling for good deals on new cars. This makes discounts like Tesla's even more attractive.
Tesla's pricing war may pay off
As Tesla faces its first drop in demand, the early interest surge may also be a sign that Tesla's pricing war may have paid off. Analysts have been worried that Tesla's recent discounts and moves such as renting out cars to others could be signs that it is overbuilding, an old struggle in the auto industry.
Tesla's cars are no longer considered luxury vehicles and will be priced competitively with mainstream EVs. Tesla's cars will also be eligible for an additional $7500 tax credit for new EVs under the Inflation Reduction Act of the Biden administration. This is another benefit for customers.
Edmunds analyst Ivan Drury recommends that interested Tesla buyers act quickly, as there are likely to be more changes to the EV tax credits in the future. He suggested that EV customers who are on waiting lists and have uncertain timelines might consider buying a Tesla instead.
Drury stated in the note that "Now is the right time to research vehicle inventories, secure financing and determine how current or upcoming EV credit credits will affect your purchase." Price cuts of 20% or more with incentives nationwide are not common, so it is important to act now before you get any corrections.
Musk is still zigging when his rivals zag, even as Tesla starts to behave more like its legacy counterparts — which is a welcome change for investors. After years of supply chain snags and the pandemic, companies like Ford and GM have learned to manage their inventories more efficiently and to sacrifice market share to make profits.
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By: nnaughton@insider.com (Nora Naughton)
Title: Tesla’s price cuts have triggered a serious surge in buyer interest
Sourced From: www.businessinsider.com/teslas-price-cuts-discounts-serious-surge-in-buyer-interest-2023-1
Published Date: Thu, 19 Jan 2023 19:00:43 +0000
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