Tesla slashes prices amid slumping sales

Tesla on Friday lowered the prices of its vehicles around the world as the largest electric car maker faces declining sales.

Three of the four best-selling cars, Model X, Model Y, and Model S, are priced at reduction The $2,000 difference comes days after the company recorded lower-than-expected deliveries in the first quarter of 2024.

Prices for the standard sedan Model 3 remained unchanged. The Model Y small SUV is the company’s best-selling vehicle and the most popular electric vehicle in the country.

Factoring in federal tax credits and estimated gas savings, Model Y prices now start at just under $30,000, the automaker says. announcedadded, “Affordability is key to our mission.”

This price cut is disappointing news for the company. Reuters reported Tesla has scrapped plans for a value-oriented Model 2 that would cost about $25,000 after owner Elon Musk Postponed the He was expected to visit India, where he would announce the automaker’s entry into the South Asian market.

Last week, the company also announced layoffs, cutting 10% of its workforce, or about 14,000 people.

“There is nothing worse, but it must be done,” Musk said in the memo. “This allows us to be lean, innovative and greedy for the next cycle of growth.”

Tesla shares have plummeted in recent weeks, down 40% since the beginning of the year. The company’s stock price, which fell below $150 per share on Friday, is less than half of the company’s all-time high in July of last year.

The company is scheduled to release its full quarterly results on Tuesday, with last week’s sales showing the first year-over-year decline in quarterly sales in four years.

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