Tesla recently announced a price increase for the Model Y scheduled to take effect on April 1st as part of an end-of-quarter incentive.
Tesla often implements “end-of-quarter incentives” to boost vehicle deliveries before the quarter ends, given its direct-to-consumer business model, distinct from traditional franchise dealer models. This direct approach means Tesla owns all vehicles from production to delivery, impacting its financials negatively with excess inventory.
While Tesla has used various incentives and discounts in the past, this quarter featured temporary discounts on the Model Y, with the company now signaling a price increase on all Model Y trims at month’s end. Tesla’s website stated: “Prices will increase by $1,000 for all Model Y trims on April 1.”
These changes aim to encourage customers to finalize their orders sooner, helping Tesla fulfill more deliveries by the end of the quarter. Alongside, Tesla continues to offer incentives like up to 10,000 free Supercharging miles and 3 months of free Full Self-Driving package with a referral code.
Electrek’s Take
Tesla appears to be exploring various strategies to maximize sales effectiveness, ranging from end-of-quarter discounts to a prior warning about upcoming price hikes. Despite the predictability of these events, it underscores the advantage of purchasing a Tesla towards the quarter’s end.
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