CFRA Vice President Garrett Nelson joins Barney & Company to analyze Tesla market performance.
Electric car manufacturer Tesla reaffirmed its commitment to self-driving technology on Saturday, announcing that it has cut the price of its fully self-driving (FSD) driver assistance software by one-third.
This change reduces the price of FSD software for US customers from $12,000 to $8,000. Tesla CEO Elon Musk believes the technology will eventually become a major source of revenue for Tesla, the world’s most valuable automaker.
But the company has struggled and failed for years to achieve self-driving capabilities, and the technology has come under increasing regulatory and legal scrutiny.
Musk said last year that the price of an FSD (then $15,000) was very low, adding that the value of the car would increase dramatically once it became self-driving.
Tesla announces price cuts for certain models
Tesla is cutting the price of its fully self-driving software from $12,000 to $8,000. (Photo by Sjoerd van der Wal/Getty Images / Getty Images)
Tesla calls its driver assistance features Autopilot, or FSD, but says they do not make the vehicle autonomous and require active supervision from the driver.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 147.05 | -2.88 | -1.92% |
The FSD price cut comes after Tesla’s first-quarter deliveries fell short of Wall Street analysts’ expectations and fell for the first time in four years.
Tesla’s poor first quarter spells ‘unmitigated disaster’ for Musk
Tesla CEO Elon Musk sees self-driving and self-driving technology as a way to increase the value of his cars, but Tesla’s FSD requires active driver oversight. (Reuters/Wang Tingju/Reuters Photo)
The company announced that it delivered 387,000 vehicles in the first quarter, which was significantly lower than the expected 443,000 and an 8.5% decrease compared to the first quarter of last year.
In response to these hardships, Tesla announced it would lay off more than 10% of its global workforce, affecting approximately 15,000 employees, according to a filing with the Securities and Exchange Commission (SEC). That’s what it means.
Tesla to lay off more than 10% of employees
Tesla’s first-quarter vehicle deliveries fell for the first time in nearly four years and were well below analysts’ expectations. (Photo by John Paraskevas/Newsday RM via Getty Images / Getty Images)
“Over the years, we have grown rapidly with multiple factories around the world. This rapid growth has led to duplication of roles and duties in certain areas. “We believe it’s very important to look at Tesla’s next phase of growth as we develop some of the most innovative technologies in the automotive, energy and technology sectors. Masu. artificial intelligence” the company said in a filing.
To boost demand, the company on Friday cut the U.S. price of its Model Y, Model X and Model S by $2,000 each. Additional price reductions were also announced in Germany, China, and other European, Middle Eastern and African countries.
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Tesla is scheduled to report its quarterly results on Tuesday. The company’s stock price has fallen 40.8% since the beginning of the year as of Sunday.
FOX Business’ Chris Pandolfo, Stephen Sorace and Reuters contributed to this report.
