Tesla (TSLA) lowered the price of its base variants of the Model 3 sedan and Model Y sports utility vehicles, but increased the prices for performance models in the US Tesla share.
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The Model 3 Standard Range Plus is $ 1,000 cheaper at $ 36,990, while a Model Y Standard Range costs $ 2,000 less and costs $ 39,990.
But prices for the Model 3 and Y Performance variants each rose $ 1,000. Model 3 now costs $ 55,990 and Model Y has risen to $ 60,990.
Tesla has made several models in its range more affordable than old-fashioned car manufacturers like General Motors (GM), Ford (F) and Volkswagen (VWAGY) is making a big push in the EV market.
In Japan, the base price of the standard version of a Model 3 has been reduced to 4.29 million yen, which is about $ 40,500. The long-distance version now stands at 4.99 million yen or $ 47,200. Tesla hopes the price reductions will boost sales in Japan, where it sold less than 2,000 cars last year.
Tesla is also haunting for more competition in Japan. NissanThe (NSANY) Ariya electric crossover sports utility vehicle will hit the Japanese market later this year.
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Tesla Stock
Shares fell 1.9% in the stock market to 783.24 today, falling from its 21-day exponential moving average. Tesla stock tests its 50-day moving average, according to the MarketSmith chart analysis.
A refusal of the important benchmark will create a follow-up buying area for the IBD Leaderboard share. Investors may want to wait and see if TSLA shares can regain their 21-day line.
Tesla stock flashed several signals of a climax peak in early January, which could mean the stock has reached its peak and is the result of a downturn.
The stock has an RS rating of 96 and an EPS rating of 74. The relative strength line is lower.
Among the old-fashioned car manufacturers with a growing presence in the EV market, GM fell by 1.6%, Ford fell by 0.7%, Nissan fell by 4.4% and Volkswagen by 3%.
EV manufacturers in China Nine (NIO) decreased by 4.7% and Xpeng (XPEV) sank 6.6%.
Tesla Eyes More deliveries
The price reductions come because Tesla wants to increase its deliveries. In 2020, the company delivered 499,550 vehicles.
Tesla is expanding its manufacturing facility in Shanghai and expects to open an R&D center there by the end of the year. The EV giant is also building plants outside Berlin and Austin, Texas.
Earlier this week, Tesla also planned to open an electric car manufacturing unit in southern India. The carmaker wants to be one of the first to take advantage of the emerging EV market. Plans include an R&D center and possibly an assembly plant.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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