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.
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