A Tesla Model 3 vehicle on a car carrier in front of a store in Rocklin, California on July 21, 2021.

David Paul Morris | Bloomberg | fake images

tesla Shares fell 5% on Friday after the electric car company cut prices on some models in the US and cut the price of its premium driver assistance software.

The stock closed at $245.01. It is still up almost 100% this year after gaining 2.7% for the week.

While the CEO of Tesla Elon Musk has said in the past that the price of Tesla’s premium driver assistance option, marketed as full self-driving software, would only go up, the company cut the price by $3,000 from $15,000 in the US for customers who use it. buy in advance instead of through a monthly subscription. Subscribers pay between $99 and $199 per month, depending on whether they are upgrading from a standard version or another premium version.

Tesla is also cutting prices on stock vehicles in the US, including its base Model 3 sedan, Model S luxury sedan and Model X SUV. In China, Tesla is cutting the price of the Model S and Model X about 7%.

The FSD discount follows reports that the National Highway Traffic Safety Administration is nearing completion of a years-long investigation into possible safety flaws in Tesla’s driver assistance systems. The investigation began after a series of crashes into stopped first aid vehicles by Tesla drivers who were thought to be using driver assistance features.

The price cut for some Model X cars in the US makes the SUV eligible for a $7,500 tax break for qualified buyers. However, the price cuts on the Model S and X upset some previous customers in the US and China, who took to social media to complain that the lower price hurts the resale value of their cars and that they are paying higher insurance costs because their car was more expensive.

Meanwhile, Tesla’s Model 3 update, officially revealed on Friday, included controversial changes such as a “stemless” turn signal. Drivers of the redesigned Model 3 in China and The United States They’ll have to touch a button on the steering wheel to indicate they’re about to change lanes or turn, and they can use the park, reverse, neutral and drive controls on the touchscreen instead of the left-side stick. The basic upgrade to the Model 3 is priced about 12% higher in China than its predecessor.

Also known as “highland,” the upgrade to the Model 3 includes a longer battery life. Tesla China’s website says the top-end version of the Model 3 upgrade can travel up to 713 km (443 miles) on a single charge and the base model can travel 606 km (377 miles). The new Model 3 variant also features several design changes, including a touchscreen that allows rear passengers to adjust comfort and entertainment settings, along with tweaks to the vehicle’s exterior design, with new colors available.

Because of its price, Bank of America analysts wrote in a note: “We believe the impact of the new Model 3’s debut on its Chinese EV peers should be manageable considering the sedan’s entry price is much higher than consumer expectations.

Analysts said Model 3 peers in China include XPeng’s P7, BYD’s Han and Seal and Leapmotor’s C01 electric cars..

Considering the initial price increase, the initial sales volume for the Model 3 upgrade in China may not be as high as previously expected, they said. Even so, analysts remain positive about the vehicle’s sales prospects this quarter, as consumers have been waiting for the update.

Also this week, Tesla faced reports of new federal investigations into the company by the US Securities and Exchange Commission and a Manhattan federal prosecutor over whether it had deliberately misled consumers with its previous claims about battery autonomy. electric vehicle batteries, and misused resources to benefit Musk personally.

Regarding the use of company resources, Musk on Friday denied reports that Tesla had plans to build him a “glass house” near Austin, Texas.

LOOK: China’s electric vehicle market is dominated by BYD and Tesla

China's electric vehicle market is dominated by BYD and Tesla, according to a consultancy

Fix: Model 3 update has haptic turn signal button on “stickless” steering wheel and other touchscreen controls.