Tesla raised the price for a newer version of the Model 3 sedan, but they dropped the price of something else that might have investors confused.
Tesla stock took a tumble after launching some new hardware. Software, however, might have been the bigger reason for the drop.
Most analyses, including Barron’s, focused on the new version of the Model 3 launched in China and Europe. A refreshed version of the 3 should be a good thing, boosting sales of a model that’s been on the road since 2017.
A cut didn’t seem to be imminent. “The price of FSD…is actually very low, it’s not high,” said Musk on his company’s second-quarter earnings conference call in July. “The value of the car [is] increased dramatically if it is actually autonomous…if the car is worth several times its original price, $15,000 is actually a low price for FSD.”
“We see the price cut as reflecting weak FSD penetration rates,” wrote Canaccord analyst George Gianarikas in a Friday report, adding the cut is likely an “attempt by the company to accelerate its razor-razorblade model.” In this instance, the car is the razor and the FSD software is the razorblade.Tesla is a little cagey about the number of customers who have purchased FSD, but 400,000 was a figure floated at the March investor day.
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