Tesla (TSLA) cut the price of its base variants of the Model 3 sedan and Model Y sports utility vehicle but raised the prices for performance models in the U.S. Tesla stock fell.
The Model 3 Standard Range Plus is $1,000 cheaper at $36,990, while a Model Y Standard Range costs $2,000 less and is priced at $39,990.
But the prices for the Performance variant of the Model 3 and Y each rose $1,000. The Model 3 now costs $55,990 and Model Y rose to $60,990.
In Japan, the base price of the standard version of a Model 3 was cut to 4.29 million yen, which is about $40,500. The long-range version now goes for 4.99 million yen or $47,200. Tesla hopes the price cuts will spur sales in Japan, where it sold fewer than 2,000 cars last year.
Tesla is also bracing for more competition in Japan. Nissan‘s (NSANY) Ariya electric crossover SUV is slated to hit the Japanese market later this year.
Shares fell 1.9% to 783.24 on the stock market today, pulling back from its 21-day exponential moving average. Tesla stock is testing its 50-day moving average, according to MarketSmith chart analysis.
A bounce from that key benchmark would create a follow-on buy area for the IBD Leaderboard stock. But investors might want to wait and see if TSLA stock can retake its 21-day line.
Tesla stock flashed several signals of a climax top in early January, which could mean the stock has reached its top and could be due for a pullback.
Among legacy automakers with a growing presence in the EV market, GM fell 1.6%, Ford dipped 0.7%, Nissan dropped 4.4% and Volkswagen rose 3%.
Tesla Eyes More Deliveries
The price cuts come as Tesla looks to ramp up its deliveries. In 2020, the company delivered a record 499,550 vehicles.
Tesla is expanding its Shanghai manufacturing facility, and expects to open an R&D center there by year-end. The EV giant also is building plants outside Berlin and Austin, Texas.
Earlier this week, Tesla also announced plans to open an electric-car manufacturing unit in southern India. The automaker seeks to be among the first to tap into that nascent EV market. Plans include an R&D center and possibly an assembly plant.