Tesla (TSLA) has cut the price of its basic variants of the Model 3 sedan and the Model Y sport utility vehicle, but has increased the prices of performance models in US Tesla shares.
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The Model 3 Standard Range Plus is $ 1,000 cheaper for $ 36,990, while a Model Y Standard Range is $ 2,000 less and priced at $ 39,990.
But the prices for the Performance variant of the Model 3 and Y increased by $ 1,000 each. Model 3 now costs $ 55,990 and Model Y has increased to $ 60,990.
Tesla has made several models of its line more accessible, since traditional automakers, such as General Motors (GM), Ford (Faith Volkswagen (VWAGY) gave a big boost to 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-range version now costs 4.99 million yen or $ 47,200. Tesla expects price cuts to boost sales in Japan, where it sold less than 2,000 cars last year.
Tesla is also preparing for more competition in Japan. Nissan(NSANY) Ariya’s electric crossover SUV Ariya is scheduled to hit the Japanese market later this year.
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Tesla Stock
Shares fell 1.9% to 783.24 in the stock market today, falling from their 21-day exponential moving average. Tesla shares are testing its 50-day moving average, according to analysis by the MarketSmith chart.
A jump from this key benchmark would create a subsequent buying area for IBD Leader Board inventory. But investors may want to wait and see if TSLA’s shares can resume their 21-day line.
Tesla’s shares issued several signs of a climax in early January, which could mean the stock has reached its top and may be about to retreat.
The stock has an RS rating of 96 and an EPS rating of 74. Its relative strength line has shown a downward trend.
Among traditional automakers with a growing presence in the EV market, GM fell 1.6%, Ford fell 0.7%, Nissan fell 4.4% and Volkswagen rose 3%.
China-based EV manufacturers Nio (NIO) fell 4.7% and Xpeng (XPEV) sank 6.6%.
Tesla looking for more deliveries
Price cuts occur as Tesla seeks to increase its deliveries. In 2020, the company delivered a record 499,550 vehicles.
Tesla is expanding its plant in Shanghai and hopes to open an R&D center by the end of the year. The giant EV is also building factories outside Berlin and Austin, Texas.
Earlier this week, Tesla also announced plans to open an electric car manufacturing facility in southern India. The automaker seeks to be among the first to enter this nascent EV market. The plans include an R&D center and possibly an assembly plant.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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