FILE PHOTO – A 2018 Tesla Model 3 electric vehicle is shown in this photo illustration taken in Cardiff, California, U.S., June 1, 2018. REUTERS/Mike Blake/File Photo
(Reuters) – Electric carmaker Tesla Inc is lowering the price of its Model 3 by $1,100, citing the end of a costly customer referral program, a company spokeswoman said on Wednesday.
The second price cut to the Model 3 this year now brings the cost of its least expensive variant to $42,900, according to the company’s website here.
Tesla’s customer referral incentive plan ended on Feb. 1 after Chief Executive Officer Elon Musk had tweeted that the referral program was “adding too much cost to the cars, especially Model 3”.
Tesla delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States to offset a reduction in a green tax credit.
The company is rapidly increasing production of its Model 3 sedan and lower prices could help it reach a broader customer base than its pure luxury vehicles.
Reporting by Sanjana Shivdas in Bengaluru; Editing by Gopakumar Warrier