Tesla increases base models’ prices after record $1.6 billion profit in Q3
Information about Tesla increases base models’ prices after record $1.6 billion profit in Q3
What just happened? Tesla just recently published the Q3 earnings results, announcing an astounding $1.6 billion in profit. However, despite such massive figures, it looks like the EV manufacturer believes it can do more, so it has quietly increased the prices of the Tesla Model 3 and Model Y by $2000 and the Model S and Model X by $5000.
Tesla published its Q3 earnings report back on Wednesday, amassing over $13.7 billion in revenue and $1.6 billion in profit, despite the ongoing chip shortage and multiple shipment delays of the restyled Model S and Model X. At the moment, the EV company is on a 2-year-long streak of positive results.
Part of these results comes from Tesla’s continuous price adjustments based on its supply and demand. For example, Tesla’s Model 3 and Model Y had their prices adjusted in early October, bumping the base models by $2000, placing them at $41,990 and $54,990, respectively. However, it looks like that wasn’t enough, as Tesla is increasing prices once again by an extra $2000, pushing Model 3’s price to $43,990 and Model X’s to $57,990.
Moreover, the EV manufacturer is also hiking the prices of Model S and Model X base versions by $5000, meaning they will now start at $94,990 and $104,990, respectively.
The price increases only seem to have affected the base models, as the pricing of the Plaid, Long Range, and Performance models remain unchanged.
“Sometimes, to the public, our pricing changes may not seem to make logical sense,” said Zach Kirkhorn, Tesla’s CFO. “But, you know, there is a strategy that we work behind the scenes as we’re balancing supply and demand, as we’re also trying to balance various shortages on parts, as we’re trying to manage wait times. All of that goes into the optimization here.”
This news comes after Tesla Model 3 was named the best-selling car in Europe-26 during September 2021, with 24,591 units sold last month alone.