Tesla has removed all discounts on vehicles in existing inventory as the company has decided to make changes to the sales and delivery system.
Earlier this month we reported that Tesla had implemented discounts for its Model Y inventory in the United States, with the discounts reaching over $7,000 on some vehicles. While existing inventory discounts are nothing new, the magnitude and timing of the discounts was noteworthy as Tesla had just released its Q1 production and delivery figures which showed a substantial number of vehicles that were built but not sold during the first three months of the year, pushing inventory levels higher.
Then came the announcement that Tesla was laying off more than 10% of its global workforce, a move that Elon Musk said would allow the company to prepare for its next growth phase. As part of the review that took place to determine where they could streamline operations, they apparently found something in their processes for selling and delivering cars in existing inventory.
On Tuesday Tesla removed all discounts on all new inventory vehicles, marking the first time in two years there have been no discounts, as noted by Sawyer Merritt on X. Discounts remain on used demo vehicles.
As to why the discounts were removed, Musk replied saying the company is “simplifying and streamlining the whole Tesla sales and delivery system,” which “has become complex and inefficient.”
We are simplifying and streamlining the whole Tesla sales and delivery system. It has become complex and inefficient.
— Elon Musk (@elonmusk) April 16, 2024
Musk did not elaborate on what in the process has become complex and inefficient, nor did he say what changes they were contemplating to correct the issues. He also did not say whether the identified efficiencies will apply to the sales and delivery process of custom ordered vehicles.
While there are no longer any discounts on inventory vehicles, there is still one major benefit to buying from existing inventory – near immediate delivery, compared to the 1-2 month wait time when placing a custom order.
