Tesla Discounting Model Y Inventory Overstock

Tesla’s world is changing. The company saw its stock price slip early this week on news of slower-than-predicted first-quarter sales that left it with a backlog of nearly 47,000 unsold cars.

That’s a problem more traditional automakers are familiar with. Tesla has long been known for made-to-order cars and waiting periods to get them. It isn’t used to having a stockpile of cars to sell off.

To do it, it’s resorting to tactics from legacy automakers.

Automotive News reports, “While Tesla started charging $1,000 more to custom order its best-selling vehicle, the Model Y, at the beginning of the month in the U.S., it’s offering much bigger markdowns on the crossovers in inventory. The rear-wheel drive version, for example, can be had for $4,600 off, while long-range and performance Model Ys are discounted by at least $5,000.”

Every version of the Model Y qualifies for the full $7,500 federal electric vehicle (EV) tax incentive.

Tesla is also trying to entice repeat buyers, Electrek reports, by allowing them to transfer their subscription to the company’s “full self-driving” driver assistance system to a new car for free.

CEO Elon Musk had authorized the transfers for a short time in 2023, calling it “a one-time thing.” But, Electrek reports, “Last night, Tesla started to offer Full Self-Driving transfer on all new Tesla vehicles other than the Cybertruck. The offer is stackable on top of every other incentive that Tesla is currently offering and likely will offer later in the quarter.”

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