Tesla, Inc. is making headlines as the company’s shares are trading higher on Friday morning. In a significant update, Tesla China has announced that it has shortened its payment cycle to supply chain partners to just 90 days in 2024, down from 100 days in 2023.
Improved Payment Terms
According to Grace Tao, Tesla’s vice president of External Affairs, this change aims to streamline operations and enhance supplier relationships. This improvement is particularly notable, as four other unnamed new energy vehicle (NEV) makers still take over 150 days to settle payments.
Referral Program Revamp
In related news, Tesla has revamped its referral program across North America as the company races to meet its delivery target of 515,000 vehicles in the fourth quarter. The updated referral program includes enhanced discounts and rewards, with specific incentives for the Cybertruck.
Unlimited Overnight Charging
Additionally, Tesla recently introduced unlimited overnight charging via the Tesla Electric service, down from $15 a month, in an effort to attract more buyers. This follows discounts of up to $4,000 on select Model 3 and Model Y vehicles, aimed at avoiding a decline in annual deliveries.
Q4 Deliveries and Yearly Sales Decline
Despite these efforts, analysts predict that Tesla’s fourth-quarter deliveries will set new records but may not prevent a yearly sales decline. The potential removal of the $7,500 EV tax credit by the incoming Trump administration could further affect Tesla’s sales, with significant earnings impact if the credit is cut.
Stock Performance
TSLA shares are trading higher by 2.51% to $341.18 at publication on Friday.