In a strategic move to enhance vehicle sales in the fourth quarter, EV giant Tesla Inc. (NASDAQ:TSLA) is leveraging its Tesla Electric utility service. The initiative aims to attract more buyers through a unique incentive.
What Happened: Tesla launched the Tesla Electric service in 2022 to expand its virtual power plant efforts. This service automatically manages electricity transactions for Powerwall owners, offering protection against peak prices.
Currently, Tesla Electric is operational in Texas and the UK, with plans for further expansion.
To boost car sales, Tesla is offering a special incentive.
Customers who purchase a new Tesla vehicle by Dec. 31 can enjoy unlimited overnight charging for just $5 per month for a year. Eligibility requires buyers to reside in a Texas area where they can choose their electricity provider and become new Tesla Electric members.
This initiative is part of Tesla's strategy to achieve record vehicle deliveries in Q4 2024, targeting over 515,000 units.
The offer comes amidst Tesla's efforts to boost its fourth-quarter delivery numbers. The company is also offering discounts on some inventory vehicles in the U.S. and offers in other offers in geographies including Europe.
Why It Matters: Tesla's energy segment has seen significant growth, with revenues reaching $2.376 billion in Q3 2024, marking a 52% increase compared to the previous year. This growth has led to the promotion of Michael Snyder to Vice President of Energy and Charging.
The energy business achieved a record gross margin of 30.5%, with the Powerwall product seeing record deployments.
In addition, Tesla is offering three months of free full self-driving (FSD) subscription and supercharging for North American buyers who take delivery of a new inventory vehicle by the end of the year. This offer extends to Tesla's entire lineup, including the newly added Cybertruck.
Tesla's sales in China and globally are expected to set new records in Q4 2024, but may not be sufficient to avoid a decline in full-year sales. The company needs to deliver at least 514,926 vehicles in the last quarter to surpass its 2023 delivery numbers.
Price Action: Tesla stock gained over 2.1% on Tuesday to close at $346. Year-to-date, the EV giant's stock has gained 39.3%, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Tesla
