Stocks of S. Korean EV battery firms plummet after Tesla announced plans to manufacture own batteries
Tesla reduces price of Model Y SUV to boost sales
Tesla Inc reduced the price of its sport utility vehicle Model Y by $3,000, just four months after its launch to maintain sales momentum during the pandemic.
The starting price of Model Y is now at $49,990, down almost six percent from its former price of $52,990.
Tesla started deliveries of the Model Y in March.
By April, the company revealed that it was already profitable, marking the first time in its 17-year history that its vehicle became profitable in its first quarter.
The reduction follows price cuts in May by $2,000 on Tesla's Model 3 and $5,000 on its Model X and Model S.
Tesla posted a lesser-than-expected drop in car deliveries in the second quarter, showing resiliency as the pandemic ravaged the global auto industry.
Despite the temporary shutdown of Tesla'sTesla's Fremont, California factory due to the pandemic, it managed to deliver 80,050 of its Model Y and Model 3 and 10,600 of its Model S and Model X.
Its second-quarter total of 90,650 vehicles delivered surpassed the 72,000 forecasted by Wall Street analysts.