Tesla cuts Model 3 price for second time this year

  • Electric carmaker Tesla 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.
  • 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".
A Tesla Model 3 car is on display during the Auto China 2018 at China International Exhibition Center on April 25, 2018 in Beijing, China.
VCG/VCG | Getty Images
A Tesla Model 3 car is on display during the Auto China 2018 at China International Exhibition Center on April 25, 2018 in Beijing, China.

Electric carmaker Tesla 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.

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.