Although Tesla typically adheres to a policy of not offering discounts on its electric vehicles, it has been known to break this rule at the end of quarters in order to clear excess inventory and boost its quarterly results.
Recently, the company offered larger discounts than usual in several markets, which led some analysts to speculate that there may be issues with demand. Despite the discounts typically ending at the end of the quarter, Tesla has continued to offer them into the new year. The continuation of discounts in early year is considered abnormal.
As previously reported, Tesla China Maintain Market Dominance with Aggressive Model 3 and Model Y Price Cuts. It has now come to light that the company is also offering reduced prices in several other markets, including Australia, Singapore, South Korea, and Japan. In Singapore specifically, Tesla is providing a $5,000 discount to customers who trade in their internal combustion vehicles and an additional $5,000 credit to cover the cost of obtaining a certificate to operate a car in the country.
These discounts and reductions apply to existing inventory vehicles and new buyers will also receive a complimentary Wall Connector. This move by Tesla comes as a surprise, as the automaker usually maintains low inventory levels in the early stages of a quarter, particularly in overseas markets where new shipments are awaited. However, a discrepancy of around 50,000 vehicles between production and delivery over the past two quarters has resulted in some markets having an excess of Tesla vehicles, especially outside the US, early this new year.
