TESLA MAKES SECOND PRICE CUT

TESLA is cutting the price of its Model 3 sedan for the second time this year, citing the end of a customer-referral programme that was a more costly incentive than the company realised. All versions of the Model 3 will cost $1 100 (R14 803) less, lowering the starting price of the car to $42 900. The move follows a $2 000 price cut on all Teslas announced last month to partially offset the reduction in the US federal tax credit its vehicles were eligible for. Chief executive Elon Musk put an end to Tesla’s referral programme his month. The company, which doesn’t do traditional advertising, gave new customers months of free access to its supercharger network if they were referred by a friend. Top referrers have won prizes as valuable as a nextgeneration Roadster sports car. Tesla shares fell 0.5 percent to $319.89 in pre-market trading in New York. The stock has declined 3.4 percent since the year began. Musk, 47, announced to staff last month that Tesla would cut the workforce by 7 percent, citing the challenges the company faced making its vehicles affordable without compromising profitability. “I want to be a broken record about this: it’s cost, cost, cost, cost,” Musk said last week. “Getting those costs down… is what allows us to lower the price and be financially sustainable and achieve our mission of environmental sustainability.” I