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Tesla (TSLA) Offers Cash Discount on Model 3/Y to Boost Sales

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In an attempt to attract new customers, Tesla, Inc. (TSLA - Free Report) is now offering cash discount on Model 3/Y vehicles. The new customers can avail the cash benefit via a referral program.

After taking a long break, the electric vehicle pioneer reintroduced the referral program for cars during the last quarter. Under this program, existing customers can provide referrals to new customers.

In the past few months, the cash discount and Full Self-Driving packages have been limited to buyers of the Model S and Model X. For the Model 3 and Model Y, Tesla credit points were the main incentives available to buyers.

Tesla recently announced to offer cash benefits and additional incentives to the buyers of Model 3/Y in its major markets, including the United States, Canada, Mexico, Hong Kong, China, Germany, France and Singapore, per the company’s regional websites. The extension of the existing program will attract new buyers and accelerate sales.

Per the information provided on the website, using the referral link, the new buyer will get $500 off on their purchase and three months of Full Self-Driving capability, while the referrer will get 10,000 referral credits.

Since late last year, Tesla has been slashing the prices of its models to boost sales. As a result, it registered a significant rise in the number of vehicles delivered in the second quarter. The number of deliveries increased by around 10% quarter-over-quarter to 466,140.

Elon Musk, CEO of Tesla, has been offering discounts and other incentives in the United States to increase the affordability and, consequently, the sales of vehicles. Musk said the company would prioritize sales over margins in a weak economy with rising competition.

Tesla Model 3 and Model Y are also eligible for a tax credit of $7,500 in the United States under the Inflation Reduction Act.

Zacks Rank & Key Picks

TSLA currently carries a Zacks Rank #3 (Hold).

Some top-ranked players in the auto space are Ford Motor Company (F - Free Report) and Li Auto, Inc. (LI - Free Report) , each carrying a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Ford is one of the world’s leading automakers. F shares are up 28.8% year-to-date.

Ford has a VGM score of B. The company surpassed earnings estimates in two out of the trailing four quarters and missed twice, the average surprise being 24.35%.

Li Auto designs, develops, manufactures and sells premium smart electric SUVs. Li shares are up 75.9% year-to-date. The company’s expected earnings growth rate for the current year is 2,400%.


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