Customers will only be able to order the base variant of the Model 3 in-store. Tesla has also made its autopilot a standard feature and will raise model prices. In a blog post, the company justified the cost increase, saying the new addition will make its vehicles less accident-prone. (Bloomberg)
Talking point: The profitability of the Model 3 has been a central concern during the vehicle’s long development and through Tesla’s many production woes. In 2017, UBS estimated the company would lose US$2,300 on every car sold for US$35,000, but would make money on higher-priced variants. Restricting orders of the base model to showrooms may be a way to limit those losses. Last week, the electric vehicle company reported a 31 per cent slump in deliveries for the first three months of 2019 compared to the previous quarter, coinciding with the end of a US$7,500 tax credit in the United States. But there’s some hope for the company in Canada, where March’s federal budget included a purchasing incentive of up to $5,000 for electric vehicles with a maximum retail price of $45,000.