The car maker, Tesla, has been a hot topic of conversation for months, especially after its electric car debuted last summer.
And the latest round of price cuts is just the latest in a trend that has seen the automaker’s stock plummet in recent weeks.
But in a move that seems to be designed to help the company’s brand and drive demand, Tesla’s stock dropped about $2,000 on Wednesday after a tweet by CEO Elon Musk, who was quoted by Business Insider.
In an interview with Reuters, Musk said the company is going to offer its second-hand vehicles to buyers with the guarantee of a guaranteed second hand price.
“We have a plan in place that we are going to be selling second hand cars at a guaranteed price to those buyers,” Musk said.
“And if we have a second hand car for less than the sticker price, we’ll refund the difference.
The guarantee is very small.”
As of Wednesday afternoon, Tesla had a market cap of $67.3 billion, according to data from research firm GTM Research.
And it had about 11,500 Model 3 reservations as of Monday morning.
In the past, Musk has said he would sell his company to Tesla in 2019 if the company doesn’t make enough money.
While the price cut is intended to drive down the value of the stock, it also gives Tesla a chance to re-examine its future plans for the brand.
For a company that has been criticized for its production methods and poor sales numbers, the move could help the carmaker make more money in the future.
“If they are going with a guaranteed supply of vehicles, that could be a positive, especially if they are able to offer better returns for their shareholders,” Paul Gossett, a managing director at research firm IDC, told Bloomberg.
“It is certainly good for the stock.”