While the electric-car maker has always planned to lower Model 3 prices in order to hit its target $35,000 starting price for the vehicle, aggressive price cuts to all of its models and a workforce reduction announced earlier this year have some investors anxious that demand isn't living up to the company's expectations.
However, the US-firm has since announced plans to reverse the decision that would close the majority of its 378 stores globally.
It's against that backdrop that the Palo Alto-based company is about to add yet another project into the mix: The Tesla Model Y, an all-electric SUV.
Tesla is still testing the updated charging station with select owners, and is breaking ground on the first public V3 Supercharger location next month. In addition, The Daily Mail reported that angry owners had reached out to the company after purchasing Autopilot software for $5000, soon before the prices were discounted.
On February 28, Tesla lowered the prices of its vehicles and Autopilot, while shifting some Autopilot features into an upgrade package. The company expects to build closer to 400,000 cars this year.
With the Model 3 priced at $35,000, the Model Y's starting price will likely be about $38,500.
Tesla has enormous expectations for its Model Y. Citing the fact that the midsized SUV segment is the most popular vehicle type in numerous major markets Tesla operates in, Musk believes the Model Y will be produced in higher volumes than the Model 3, he said during the company's fourth-quarter earnings call.
Potential Tesla owners will have a week to place their order before prices rise, so current prices are valid until March 18th.
Now that Tesla (NASDAQ: TSLA) is finally selling its Model 3 in mass-market volumes and at its long-awaited $35,000 starting price, the company is moving on to its next big product: its Model Y SUV. This includes payments for store leases, galleries and real estate overseas. The price increase accompanied a reversal of the automaker's decision to close or repurpose all of its retail stores in an effort to shift sales online and cut costs.
Tesla is set to unveil the Model Y on March 14 at the Los Angeles Design Studio.
Stated simply, Tesla has now gone back on all of the major business model changes it made just about two weeks ago, further exposing a company that can only be described as in the midst of anarchy.