Tesla has reduced prices for three of its five models by $2000. This is one of the problems faced by the electric car manufacturer led by billionaire Elon Musk, ABC News reports, according to UNN.
Details
The company reduced prices for 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 for the Model X and S, its older and more expensive models.
Prices for the Model 3 sedan and Cybertruck remained unchanged.
The starting price for the Model Y has been reduced to $42,990, as well as to $72,990 for the Model S and $77,990 for the Model X.
The move comes a day after Tesla's shares fell below $150 per share, eliminating all gains made over the past year. The Austin, Texas-based company's share price has fallen by about 40% this year due to falling sales and increased competition. Lower prices are a way to try to attract more car buyers.
Early on Saturday, Musk posted on the X platform that the cost of an entry-level Tesla was only $29,490, including the federal tax credit and gas savings.
Industry analysts had expected Tesla to unveil a small Model 2 electric car that would cost around $25,000. This month, media reports that Musk was planning to cancel the project created even more uncertainty about the company's direction, although Musk called them untrue.
Addendum Addendum
Tesla has recently announced that it is cutting 10% of its staff globally, or about 14,000 jobs.
The company also announced that it is recalling nearly 4,000 of its 2024 Cybertrucks after discovering that the accelerator pedal can get stuck, potentially causing the vehicle to accelerate unintentionally and increasing the risk of an accident.
On Saturday, Musk confirmed that he had postponed a planned weekend trip to India to meet with Prime Minister Narendra Modi, citing "very large commitments at Tesla." On X, he said he was looking forward to rescheduling the visit for later in the year.
Context
Tesla plans to announce its first-quarter earnings on Tuesday.
Earlier this month, the company reported that its global sales fell sharply from January to March due to increased competition around the world, slower growth in electric vehicle sales, and previous price cuts that failed to attract more customers. This was the first quarterly drop in Tesla's sales in almost four years.