Tesla slashes prices on US models after missing delivery goals

Elon Musk’s Tesla has cut US prices of its Model 3 compact sedan and the Model Y SUV, ratcheting up its price war just days after the third-quarter deliveries of the world’s most valuable automaker missed market expectations.

The latest cuts come as Musk’s company strives hard to deliver a record 476,000 vehicles in the last three months of 2023 to meet the annual target of handing over 1.8 million vehicles.

The price cuts by Tesla — now by about 2.7% to 4.2% — started in January to support sales in an uncertain economy and fend off competition from automakers such as Ford and China’s BYD. Tesla shares edged up 0.2% to close at $260.53 amid a broad rise in stocks.

The standard Model 3 sedan is now $1,250 cheaper at $38,990, while the Model Y long-range variant costs $2,000 less at $48,490, the automaker’s website showed.