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Tesla cuts prices of Model S in United States, China

Adds background, updates shares

Oct 13 (Reuters)Tesla Inc TSLA.O said on Tuesday it cut the price of its Model S “Long Range” sedan by 4% in the United States, days after the electric-car maker reported record quarterly deliveries.

The company, which is expected to report third-quarter results on Oct. 21, cut the price to $71,990 from $74,990 in the United States. It also trimmed the starting price of the Model S by 3% in China. (https://bit.ly/34PqCew)

Earlier this month, Tesla cut the starting price of its Chinese-made Model 3 sedans by about 8% to 249,900 yuan ($36,805).

The world’s largest carmaker has been trimming prices on various models in its lineup at the same time legacy automakers are trying to make inroads in the electric vehicle market by launching their own electric cars.

Tesla said it delivered 139,300 vehicles in the third quarter, an all-time record, yet shares fell as some analysts doubted if Tesla could hit its ambitious year-end target.

Last week, the company’s Chief Executive Officer Elon Musk told employees that Tesla has a chance to produce a half-million cars this year, according to an internal email seen by Reuters.

Tesla said in January that 2020 vehicle deliveries should comfortably exceed 500,000 units, a forecast it has left unchanged despite the COVID-19 pandemic.

This means the company will have to increase deliveries to nearly 182,000 in the fourth quarter to reach that target.

Shares of the electric carmaker, which have surged more than five times this year, were up nearly 1% at $445.10 in pre-market trade.

(Reporting by Akanksha Rana in Bengaluru; Editing by Arun Koyyur)

(([email protected]; ; Twitter: @AkankshaRanaa;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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