Tesla slashed prices by $2,000 for three of its five models in the U.S. on Friday, reflecting the ongoing challenges for the electric vehicle giant led by Elon Musk. The reductions affected the Model Y, the company’s best-selling electric SUV in the U.S., along with the Models X and S, its older and pricier counterparts. Meanwhile, prices for the Model 3 sedan and the Cybertruck remained unchanged.
These adjustments brought the starting price of a Model Y to $42,990, while the Model S and Model X now begin at $72,990 and $77,990, respectively. The move followed Tesla’s stock drop below $150 per share, erasing gains made over the past year, amidst a 40% decline this year due to dwindling sales and heightened competition. Lower prices serve as a strategy to attract more buyers in a challenging market.
Elon Musk took to X, formerly Twitter, to highlight the reduced entry-level Tesla cost, factoring in federal tax credits and gas savings, bringing it down to $29,490. Amidst speculation about Tesla’s plans, particularly regarding the rumored Model 2 priced around $25,000, Musk dismissed reports of scrapping the project as untrue.
The price adjustments concluded a tumultuous week for Tesla, marked by a 10% global staff reduction and a recall of nearly 4,000 2024 Cybertrucks due to a potential accelerator pedal issue. Musk postponed his planned trip to India to meet with Prime Minister Narendra Modi due to “very heavy Tesla obligations,” aiming to reschedule later this year.
Tesla is poised to announce its first-quarter earnings next Tuesday, following a notable decline in worldwide sales from January to March, attributed to increased competition, sluggish electric vehicle sales growth, and unsuccessful prior price cuts.
