Tesla just started offering discounts in Germany on specific Model 3 vehicles. The discounts apply to not-a-refresh "refresh" sedans, "pre-refresh" vehicles, and showroom cars. As you can see from the tweet below, the discounted cars specify if they're the refreshed Model 3 or a prerefresh car, as well as if they're considered new or a showroom vehicle.
Uh oh. Demand for the Tesla Model 3 has fallen off a cliff once again. No one wants to buy this car, refreshed or not. Why is Tesla building more factories if it can't sell its cars with refreshes and discounts?
It doesn't take long to find statements on social media like the one above. It makes sense, right? If demand is suffering, you lower prices. However, as we've seen time and time again in the past, even though Tesla uses strategies to sell more cars – every automaker uses strategies to sell more cars. Their job is to sell cars and make a profit – it hasn't proven the "demand cliff" suggestions.
Instead, it has proven that Tesla can sell many more cars when and if it chooses to. And, it typically chooses to do so at the end of the quarter, and especially the end of the year. Elon Musk recently told employees that profits are king, so why would it discount the Model 3?
Clearly, Tesla is thinking volume over price. The Model 3 is its best-selling vehicle. If it can sell more cars, even at a lower price, the potential for profit increases. At the same time, deliveries ramp up, so it could be a win-win.
The refreshed Tesla Model 3 Long Range AWD sees a discount of about $1,200. The same car in prerefresh form gets a discount of nearly $2,000. For the biggest discount, choose the prerefresh Model 3 Performance. It's discounted by about $4,400.
With just a few weeks left until the end of the quarter and the end of the year, we'll watch and wonder as Tesla pulls out all the stops to hit its goal of 500,000 deliveries in 2020. We can only hope Tesla offers some last-minute discounts in the North America.