Tesla late Friday cut the prices of three of its five models in the United States by $2,000, another sign of the challenges facing billionaire Elon Musk's electric car maker.
The company lowered the prices of the Model Y, a small SUV that is Tesla's most popular model and the best-selling electric vehicle in the United States, as well as its older, more expensive models, the Models X and S. Prices for the Model 3 sedan and Cybertruck remained unchanged.
The price reduction brings the starting price of the Model Y down to $42,990, the Model S to $72,990, and the Model X to $77,990.
The move came a day after Tesla shares fell below $150 per share, wiping out all of the gains made over the past year. The Austin, Texas, company's stock has fallen about 40% so far this year due to declining sales and increased competition. Sticker price discounts are a way to attract more car buyers.
An entry-level Tesla costs $29,490 after federal tax credits and gas savings, Musk told social media platform X, formerly known as Twitter before it was acquired and renamed, early Saturday. I posted it when it reached a certain level.
Industry analysts have been waiting for Tesla to release the Model 2, a small electric car that costs about $25,000. Media reported earlier this month that Musk planned to cancel the project, creating further uncertainty about the company's direction, but Musk insisted those were false.
Tesla's price cuts put an end to long work weeks, but on Monday the company announced it would cut 10% of its workforce, or about 14,000 people, worldwide. The company also announced it would recall approximately 4,000 2024 Cybertrucks after it was found that the accelerator pedal could become stuck, causing the vehicle to accelerate unintentionally and increasing the risk of a crash.
On Saturday, Musk acknowledged that he had postponed his planned weekend trip to India to meet Prime Minister Narendra Modi, citing “very heavy obligations to Tesla.” Mr. X, he said, is looking forward to rescheduling the visit later this year.
Tesla is scheduled to announce its first quarter results on Tuesday.
The company said earlier this month that global sales fell sharply from January to March as competition intensified around the world, electric vehicle sales growth slowed and early price cuts failed to attract more buyers. reported.
This is the first time in about four years that Tesla's quarterly sales have declined compared to the previous year.
