Tesla stock falls after delivering Model 3 electric car | USA Today

Tesla announced that initial versions of the Model 3 would carry a starting price of $44,000 before the $35,000 base model is available later this fall. A version loaded with all available options would cost $59,500, according to Barclays.

It’s “one of the oldest car dealer advertising ‘tricks'” to promote “a low price of a base care few buyers may want,” then convince buyers to purchase a more lucrative model once they’re in the showroom, Barclays analyst Brian Johnson said Monday in a note to investors.

Still, “we are somewhat heartened that pushing options helps margins,” Johnson said, adding “we actually can’t fault Tesla for its pricing strategy.”

The question is whether “similarities to legacy car sales tactics might dim the enthusiasm of the faithful,” Johnson said.

Read complete article here:

Tesla stock falls after delivering Model 3 electric car.