Tesla’s aggressive sales tactics are a stark contrast to the early stage of the quarter. The company is pulling out all the stops, offering enticing deals like low-interest financing, free upgrades, and charging perks to bolster sales.
This unusual push suggests a decline in demand, particularly given Tesla’s fourth consecutive month of sales drop in May. Historically, the automaker has timed its promotional efforts towards quarter-ends but intensified competition and waning interest in its vehicles have forced a change in strategy.
Tesla’s aggressive use of incentives to manage demand fluctuations has intensified. While price cuts were the primary tool in previous years, their diminishing effectiveness has prompted a shift to alternative offerings.
The company is currently juggling multiple promotions, including free charging, transferrable FSD, low-interest financing, and complimentary upgrades.
Despite these efforts, sales of the flagship Model S and Model X remain underwhelming, as indicated by their grouping with lower-volume models in Tesla’s delivery reports. A recent price hike for these luxury vehicles further underscores the challenges faced by these models.
