Ever since Tesla promised to deliver their fully electric cars, people have been going crazy trying to get one. Customers have been placed on waiting lists for what feels like years in the hopes of getting one of these impressive cars. The Model 3 is the latest in the car manufacturer’s fleet, but it is reportedly going to be sold at a loss. Is this true, and if so how can the company expect to keep trading in the future?
It Costs Money To Go Green
Tesla announced to its customers that a $35,000 version of their sedan car would be made available to them in just 2-4 weeks of payment. Despite making this promise, the electric car manufacturer has been closing several of its sites in a bid to save money. They seem to be determined to cut their overheads but drive up interest in their vehicles. How is it possible for Tesla to cut so many costs but stay on track with their delivery promises?
Online Only Sales
One way Tesla is cutting their costs is by removing their physical shops and committing to online sales only. Elon Musk recently admitted Tesla had an “optimistic target” and were expecting just a “small profit” in the first quarter.
Tesla believes it will save so much money on cutting overheads that savings can be passed to their customers. They expect all vehicles to cost on average 6 percent less, which is how they believe they can sell the Model 3 at just $35,000.
Will They Make A Loss?
Financial experts believe Tesla is desperately trying to drum up interest in their cars as the new tax credits on electric vehicles hits. With such high taxes, it is almost inevitable they are going to lose money, so now they are doing everything they can to save it. Tesla had previously been proud of opening their boutique stores, but have now had to close them all in a bid to save as much cash as possible.
The renewed interest in the Tesla vehicles will be welcomed at their headquarters, but it has some customers fearing further extensions to their waiting times. It’s too early to say for sure if Tesla is going to lose money, but this price drop is a strong indication they might.