Photo: Tesla
Although the quarter has only started, Tesla is very generous, offering potential owners many compelling reasons to buy one of its vehicles. These include low-interest financing, free FSD transfer, free Supercharging, plus free paint and seat options on select models as it tries to accelerate sales.
If you want to know which products are not selling well, it's enough to look at the promotions. This is also true for Tesla, which has reportedly recorded the fourth consecutive month of sales decline in May. The EV maker is eager to convince more customers to buy one of its vehicles and make the third quarter better than previous ones. You can tell that by the fact that the EV maker is running some of the most attractive campaigns in recent years, all at once.
Traditionally, Tesla has pulled the demand levers toward the end of each quarter. These end-of-quarter pushes have become more difficult as interest in Tesla EVs has cooled and other carmakers have entered the market with new EV models. This is why, in the past years, it has tried to level out the spikes and deliver a comparable number of EVs in the first part of the quarter.
This has ensured that Tesla has a more predictable performance throughout the year. To keep things smooth, Tesla has offered incentives whenever demand does not align with the company's expectations. Until last year, these have been mostly in the form of price cuts. However, as these price cuts have exhausted their potential, Tesla started offering new incentives. These include free Supercharging, free FSD transfer, and low-interest financing.
However, having many such promotions running simultaneously is not common practice. Tesla is currently offering four incentives, starting with three months of free Supercharging offered for a Model S/X/3/Y delivered by August 15. An offer to allow owners the free transfer of FSD to a new vehicle has also been renewed and is in effect until September 30. Recently, Tesla also announced a 1.99% financing rate for a Model Y delivered by September 30. The offer covers 36 to 72-month terms.
The last move is to offer free paint options for the Model 3 Performance and free seating layout options for Model X AWD for customers who add FSD to the order. The move is intended to help owners qualify for the $7,500 federal tax credit, considering that adding either option to the configuration voids the EV credit. Fortunately, software features such as FSD don't count toward the $55,000 price cap, allowing Tesla to offer this deal.
In an unrelated move, Tesla raised the prices of Model S and Model X by $2,000. Considering lackluster delivery numbers, this is unlikely to reflect an increased demand for the flagship models. Tesla doesn't break down the numbers per model and lists Model S, Model X, the Semi, and the Cybertruck in the "Other Models" category. Still, considering the estimated Cybertruck deliveries, it appears that the Model S and Model X are not selling very well.
Traditionally, Tesla has pulled the demand levers toward the end of each quarter. These end-of-quarter pushes have become more difficult as interest in Tesla EVs has cooled and other carmakers have entered the market with new EV models. This is why, in the past years, it has tried to level out the spikes and deliver a comparable number of EVs in the first part of the quarter.
This has ensured that Tesla has a more predictable performance throughout the year. To keep things smooth, Tesla has offered incentives whenever demand does not align with the company's expectations. Until last year, these have been mostly in the form of price cuts. However, as these price cuts have exhausted their potential, Tesla started offering new incentives. These include free Supercharging, free FSD transfer, and low-interest financing.
However, having many such promotions running simultaneously is not common practice. Tesla is currently offering four incentives, starting with three months of free Supercharging offered for a Model S/X/3/Y delivered by August 15. An offer to allow owners the free transfer of FSD to a new vehicle has also been renewed and is in effect until September 30. Recently, Tesla also announced a 1.99% financing rate for a Model Y delivered by September 30. The offer covers 36 to 72-month terms.
The last move is to offer free paint options for the Model 3 Performance and free seating layout options for Model X AWD for customers who add FSD to the order. The move is intended to help owners qualify for the $7,500 federal tax credit, considering that adding either option to the configuration voids the EV credit. Fortunately, software features such as FSD don't count toward the $55,000 price cap, allowing Tesla to offer this deal.
In an unrelated move, Tesla raised the prices of Model S and Model X by $2,000. Considering lackluster delivery numbers, this is unlikely to reflect an increased demand for the flagship models. Tesla doesn't break down the numbers per model and lists Model S, Model X, the Semi, and the Cybertruck in the "Other Models" category. Still, considering the estimated Cybertruck deliveries, it appears that the Model S and Model X are not selling very well.
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