At the close of 2024, Tesla Inc. is actively maneuvering to bolster its sales and manage inventory, particularly with its popular Model 3 electric sedan amid rising consumer skepticism and competition. With several incentives introduced as the year ends, the company is making strides to move its cars from lots to the hands of buyers, amid reports of significant discounts being offered at various delivery centers.
This week, Tesla issued emails to existing customers promoting referral incentives. The message detailed how customers could earn double the usual credits—"Get $1,000 instead of $500 for each qualifying person you refer who takes delivery of a new Tesla by December 31, 2024," the company stated (according to CleanTechnica). This adjustment hints at the challenges the automaker may be experiencing with moving Model 3 units off their inventory lists before year-end.
Further illustrating this trend, Tesla has raised the value of direct discounts for new Model 3 purchases from $500 to $1,500, alongside additional incentives such as free full self-driving features for three months. Clearly, these promotional efforts reflect broader concerns carrying over from previous quarters, as Tesla navigates lower demand relative to production capabilities.
Complicatively, Tesla's position as one of the leading electric vehicle (EV) manufacturers is facing challenges from both consumer fluctuations and strong competition. New data indicates manufacturer sales have decreased as 2024 progressed, prompting CEO Elon Musk to acknowledge the necessity of significant sales boosts during the fourth quarter to meet company growth goals.
On another side of the market, rental car giant Hertz is providing another avenue for used Tesla sales. With competitive pricing, Hertz is marketing its fleet of used electric vehicles—including the Model 3—at rates significantly below standard new car prices. A Reddit user recently shared their experience receiving an email from Hertz, offering them the chance to purchase a 2023 Tesla Model 3 for only $17,913, compared to its standard price tag of $40,000—a remarkable buy for many potential customers.
Hertz confirmed this pricing approach, emphasizing their commitment to maintaining well-kept vehicles across their nationwide network. When asked about how they balance rental and sales, Hertz representatives stated, "Hertz not only rents cars; we sell them, too... competitive prices, typically below Kelley Blue Book value,” highlighting their intention to bring clarity to consumers considering purchasing previously rented vehicles.
The varying sales tactics applied by Tesla and Hertz may indicate shifting dynamics within the EV market, reflecting consumers' increasing scrutiny of used car investments, especially with Tesla’s battery technology. Prospective buyers are advised to pay careful attention to mileage and potential maintenance costs, particularly considering Tesla’s eight-year or 100,000-mile battery warranty, which is particularly relevant for older used models.
Beyond sales strategies, new Tesla models, such as the 2024 Model 3 Performance, are positioning themselves within the competitive sports sedan sector. Comparative performance testing against the famed BMW M3 at Willow Springs International Raceway revealed notable results—while the M3 completed the track in 1:20.51, the Model 3 Performance clocked it at 1:22.05. Nevertheless, industry analysts argue this disparity highlights the Model 3’s efficiency and regenerative braking technology, enabling drivers to maximize total energy recaptured during runs.
Despite the slower lap times, automotive enthusiasts across platforms indicated excitement for the Model 3 Performance’s advancements. One YouTube commentator observed its long-term potential compared to more traditional sports sedans, expressing surprise at the significant price difference between the two brands: "I didn't expect the price difference to be so enormous. They really put it [the price]into perspective. The prices are wiiiiild, dude.”
Discussion surrounding Tesla points to its growing acceptance as not just another EV option but as competitive against well-regarded car companies, encouraging wider audiences to explore its offerings beyond mere utility. This sentiment was echoed by another commentator who noted, "The Model 3 Performance has come a long way. A quick test drive truly shows how good the adaptive suspension really is,” reiteration of Tesla's ability to blend user experience with performance.
Overall, as the calendar year shifts and Tesla faces increasing pressures to uphold its market share, it may be just the right moment for buyers to explore both new and used Tesla options. The blend of rental sales by Hertz and Tesla’s promotions could be key factors influencing purchasing trends within the EV market as it enters 2025.
