Tesla knocked $2,000 off the prices of three of its five models in the United States late Friday, another sign of the challenges facing the electric vehicle maker led by billionaire Elon Musk. The company cut the prices of the Model Y, a small SUV which is Tesla’s most popular model and the top-selling electric vehicle in the U.S., and also of the Models X and S, its older and more expensive models. Prices for the Model 3 sedan and the Cybertruck stayed the same.
Quick Read
- Price Reductions: Tesla has reduced the prices of three of its models, including the Model Y, Model S, and Model X, by $2,000 in the United States. The Model 3 sedan and the Cybertruck prices remain unchanged.
- Impact on Stock Value: These price cuts follow a significant drop in Tesla’s stock price, which fell below $150 per share, erasing all gains from the past year. The company’s stock has decreased by about 40% this year due to falling sales and increasing competition.
- Musk’s Communication: Elon Musk highlighted on social media that the cost of an entry-level Tesla could be as low as $29,490 after accounting for federal tax credits and gas savings.
- Staff Reductions and Product Issues: Tesla announced a 10% reduction in its global workforce, equating to about 14,000 jobs, and a recall of nearly 4,000 Cybertrucks due to a risk of unintentional acceleration.
- Deferred India Trip: Musk postponed a meeting with India’s Prime Minister Narendra Modi due to pressing obligations at Tesla, planning to reschedule it later in the year.
- Upcoming Earnings Report: Tesla is set to announce its first-quarter earnings soon, following a report of a significant sales decline in the first three months of the year—marking its first year-over-year quarterly sales drop in nearly four years.
The Associated Press has the story:
Tesla cuts US prices for 3 of its electric vehicle models after a difficult week
Newslooks- (AP)
Tesla knocked $2,000 off the prices of three of its five models in the United States late Friday, another sign of the challenges facing the electric vehicle maker led by billionaire Elon Musk.
The company cut the prices of the Model Y, a small SUV which is Tesla’s most popular model and the top-selling electric vehicle in the U.S., and also of the Models X and S, its older and more expensive models. Prices for the Model 3 sedan and the Cybertruck stayed the same.
The cuts reduced the starting price for a Model Y to $42,990 and to $72,990 for a Model S and $77,990 for a Model X.
The move came the day after Tesla’s stock tumbled below $150 per share, eliminating all gains made over the past year. The Austin, Texas, company’s stock price has dropped about 40% so far this year amid falling sales and increased competition. Discounted sticker prices are a way to try to entice more car buyers.
Musk posted early Saturday on X, the social media platform known as Twitter before he acquired and renamed it, that the cost of an entry-level Tesla was as low as $29,490 once a federal tax credit and gas savings were factored in.
Industry analysts have been waiting for Tesla to introduce a small electric vehicle that would cost around $25,000, the Model 2. Media reports this month that Musk planned to scrap the project created more uncertainty over the company’s direction, although Musk called them untrue.
The price cuts ended a long workweek at Tesla, which announced Monday that it was cutting 10% of its staff globally, about 14,000 jobs. The company also said it was recalling nearly 4,000 of its 2024 Cybertrucks after discovering the accelerator pedal can get stuck, potentially causing the vehicle to accelerate unintentionally and increase the risk of a crash.
On Saturday, Musk confirmed he had postponed a planned weekend trip to India to meet with Prime Minister Narendra Modi, citing “very heavy Tesla obligations.” He said on X that he looked forward to rescheduling the visit for later this year.
Tesla is scheduled to announce its first-quarter earnings on Tuesday.
The company reported earlier this month that its worldwide sales fell sharply from January through March as competition increased worldwide, electric vehicle sales growth slowed, and earlier price cuts failed to lure more buyers.
It was Tesla’s first year-over-year quarterly sales decline in nearly four years.
