Tesla Model 3 Price Cut by 1100 USD

Tesla Model 3 Price Cut Goal of 35000 USD
Image: CCN
Tesla Model 3 price has been slashed once again. This time, Tesla slashed $1,100 off the price of the car. This means that the Tesla Model 3 price (mid-range) now stands in at $42,900. However, are these price cuts coming at a cost of employees losing their jobs?

Tesla Model 3 Price Dropped by $1,100

Tesla’s Model 3, was priced in at $45,000 when it debuted in October 2018. However, in just 5 days since it launched, the price was increased by another $1,000. However, the company then dropped the Tesla Model 3 price by $2,000 to ensure it stays below the lower end of the federal tax credit.

Tesla Model 3 Price Cut Job Fired Tesla Cutting Costs
Image: CarAndDriver

Tesla said that this latest drop in the price of Tesla Model 3 is because of the end of their referral program. The company said that the cost of running this program was more than what they had realized. The demand for the car is high due to word of mouth marketing – and there is no need for this program anymore. Elon Musk, however, claims that he wants to bring down the price of Tesla Model 3 down to $35,000.

California: 1,000 Tesla Employees Fired

Tesla model 3 price after price cut
Image: Tesla

In an attempt to keep the cost of Tesla Model 3 to the minimum, Tesla seems to be on a cost-cutting mode. This might have led to the firing of 1,000 employees from various Tesla facilities in California.

Most of these jobs that have been lost are in the assistance departments of sales, production and manufacturing units. Tesla claimed in an email that it has hired more than what it can maintain. Hence, the company is now on a firing spree.

Will this price reduction be just the right push Tesla Model 3 needs? Only time will tell.

Source: IBTimes

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