Elon Musk Demands No Discount Policy For Tesla EVs, Converts Model 3 Demand Into Actual Sale Of Model S

Sep 30, 2016 04:26 AM EDT | Sovan Mandal

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Tesla CEO Elon Musk has let out a stern message to his employees, stressing on the need for an immediate end to the practice of offering discounts on new cars and ending speculation by some shareholders who had raised concern over the issue, Bloomberg reported.

Musk, however, stated such instances were small but still stressed on the need to bring an end to it. The CEO also stated discounts can still be applied in cases where the cars might have been damaged during deliveries or for those models that were used for testing purposes.

However, such should never be applicable to cars coming out fresh from the production lines and conformto all quality checks.

"I'm sorry for the draconian language, as I am super grateful for your hard work, but there is nothing that matters more than our integrity as a company," Musk wrote in his email to employees. "Customers need to know with absolute certainty that they can always trust Tesla to do the right thing."

The latest Musk initiative is in response to a post made at Reddit where a user questioned the rationale behind offering sales discounts on new Tesla cars. A Tesla customer also said he too had been offered a discount.

Tesla has been pushing really hard to meet third quarter sales target, which it hopes will be the best ever for the company. It is keen to see demand for both the Model S and Model X continues to be robust as it seeks to achieve the target of 50,000 deliveries that Musk had pledged to make in the second half. The EV maker had earlier stated they have delivered 29,202 vehicles in the first half.

The company meanwhile is working hard to meet the "end-2017" deadline it has set to bring the more affordable Model 3 to the market. The Model 3, with a range of 215 miles, is expected to cost around $35,000 before federal tax cuts and other incentives come into the picture.

In another development that can be considered a fallout of the strong response generated by the Model 3, about a third of buyers that had earlier evinced interest on the Model 3 is believed to have opted for the Model S instead, something that Tesla has really been aiming to achieve, Electrek reported.

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