Tesla Incentivizes Year-End Deliveries With 3 Months Of Free FSD

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Tesla Inc (NASDAQ: TSLA) will provide three months of full self-driving (FSD) software to owners of vehicles delivered in the final three days of 2020.What Happened: The announcement was made Tuesday by the electric vehicle maker’s CEO Elon Musk on Twitter.> All Tesla cars delivered in the final three days of the year will get three months of the Full Self-Driving option for free. Delivery & docs must be fully complete by midnight Dec 31st.> > — Elon Musk (@elonmusk) December 29, 2020Over the holiday weekend, Musk had reportedly written to Tesla employees, encouraging them to “go all out to make it happen,” in an effort to reach the milestone of 500,000 deliveries this year.The Palo Alto-based EV maker is already offering one year of free supercharging in order to draw customers to its vehicles.Why It Matters: Tesla owns its distribution system in its entirety and cannot recognize revenue until vehicles are delivered even though it spends money upfront to manufacture them, noted Electrek.The result is the automaker has to push hard at the end of each quarter to reduce inventory and increase deliveries.Electrek noted that the FSD incentive is unprecedented, but called the free Supercharging offer as “usual.”See Also: Tesla Gets Jefferies Downgrade As EV Maker Faces ‘Execution Risk’ In 2021The automaker needs to make 181,000 deliveries in the current quarter in order to beat its previous record.Price Action: Tesla shares closed 0.35% higher at $665.99 on Tuesday.Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.See more from Benzinga * Click here for options trades from Benzinga * Tesla To Enter India Early Next Year, Transport Minister Confirms * ‘Knee-Jerk Reaction’ To Apple EV Rumors By Investors Likely ‘Short-Lived,’ Warns Analyst(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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