Tesla cut its Model 3 prices again

By TeslaFOXBusiness

Tesla says it will be able to pay its next bond payment, but will it have enough cash to fund its growth?

USA Today business reporter Nathan Bomey on Tesla's fourth-quarter results and outlook.

Tesla slashed the price of the Model 3 by $1,100, bringing the cost of its cheapest model down to about $42,900 before incentives, according to the company’s website.

Continue Reading Below


In a statement to FOX Business, a spokesperson for the electric-car maker attributed the price cut to the ending of the referral program, “which cost far more than we realized.”


Chief Executive Officer Elon Musk in mid-January announced on Twitter that Tesla would end the referral program -- which allowed customers to give their friends referral codes in exchange for six months of free charging with the purchase of a Model S, Model X or Model 3 -- by Feb. 1 because it was costing the company too much money.

Tesla has looked to cut costs this year. In January, the electric-car maker announced it was cutting 7 percent of its employees across the country as part of an organizational restructuring aimed at reducing costs and boosting profits.

The cheapest Model 3 used to start at $44,000 in the U.S., following the phase out of a federal tax credit.

What do you think?

Click the button below to comment on this article.