Tesla slashes price of Model 3 'performance package'

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It's not all good news for Tesla this week.

Tesla Inc has not received a USA subpoena related to its Model 3 production forecasts, the electric carmaker said on Friday, following a report https://www.wsj.com/articles/tesla-faces-deepening-criminal-probe-over-whether-i t - m i s s t a t e d - p r o d u c t i o n - f i g u r e s - 1 5 4 0 5 7 6 6 3 6? m o d = s e a r c h r e s u l t s & p a g e = 1 & p o s = 1 that it faced a deepening criminal probe about the projections.

Tesla said in a statement that it "periodically" adjusts "available options and packages in order to simplify our product offering and deliver the best possible driving experience to customers".

A Tesla spokesman said the company was transparent about the difficulty of increasing production of the Model 3.

Federal Bureau of Investigation agents have asked former Tesla employees recently for testimony in the case, WSJ noted.

A Tesla spokesperson said the company cooperated with a "voluntary request" for documents from the Justice Department earlier this year but has had no additional requests for months.

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In a review posted Friday, CNN Business' vehicle expert, Peter Valdes-Dapena, wrote about taking two versions of the Model 3 Performance - one with the $5,000 performance package and one without - out for a spin.

The development comes two days after the company posted a record quarterly profit and its third profit since going public in 2010.

Some analysts also said the positive earnings report indicated that Tesla was turning a corner since facing a spate of bottlenecks and hangups as it ramped up production of the Model 3.

Musk's penchant for courting controversy with his erratic tweets had put intense pressure on Tesla to convince Wall Street that the company could produce Model 3 cars in a cost-efficient manner and turn a profit. That didn't happen. Meanwhile, the company faced a grilling from investors and Tesla stock took wild swings amid a series of other scandals. "Profitability is improving at a rate where the company is on track to generate enough cash to meet its $1.7 billion debt obligations".

"While Tesla gets criticized when it is delayed in reaching a goal, it should not be forgotten that Tesla has achieved many goals that were doubted by most", the company said.

Musk promised investors that Tesla would make 5,000 Model 3s per week to keep his legion of critics at bay.

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