Tesla Lowers US Prices For 3 Electric Vehicle Models After a Tough Week

(CTN News) – Three of Tesla’s five models in the United States were reduced by $2,000 late Friday, another indication of the challenges facing the electric vehicle maker led by billionaire Elon Musk.

Tesla cut the prices of its most popular model, the Model Y, which is the top-selling electric vehicle in the United States, as well as its older and more expensive versions, the Models X and S. There was no change in the prices of the Model 3 sedan and Cybertruck.

For a Model Y, the starting price has been reduced to $42,990, for a Model S it has been reduced to $72,990, and for a Model X it has been reduced to $77,990.

Tesla’s stock fell below $150 per share on the day following the announcement, erasing all of its gains in the past year. Stock prices for the Austin, Texas, company have fallen by approximately 40% this year due to declining sales and increased competition. It is a common practice to offer discounted sticker prices to entice more consumers to purchase a car.

A spokesperson for Tesla Motors, Inc., published a message early Saturday on X, the social media platform that was previously known as Twitter before Musk acquired it and renamed it.

He stated that the entry-level Tesla costs as little as $29,490 once you account for a federal tax credit and gas savings.

Tesla is expected to introduce the Model 2, a small electric vehicle that is expected to cost approximately $25,000. Despite Musk’s denials, media reports this month that Musk planned to abandon the project contributed to a great deal of uncertainty about the company’s future direction.

It was the end of a long workweek for Tesla, which announced that it would be laying off 10% of its global staff, which is approximately 14,000 employees. Also, nearly 4,000 of the company’s 2024 Cybertrucks are being recalled after discovering the accelerator pedal can get stuck, causing the vehicle to accelerate unintentionally and increasing the risk of a collision.

Musk confirmed on Saturday that he had cancelled a planned weekend trip to India to meet with Prime Minister Narendra Modi due to “very heavy Tesla obligations.” He expressed his hope to reschedule the trip for later this year.

On Tuesday, Tesla will announce its first-quarter earnings.

Early this month, the company reported that its worldwide sales dropped sharply from January through March due to increased competition worldwide, a slowdown in electric vehicle sales growth, and earlier price cuts not working to attract more customers.

A declining quarterly sales result for Tesla marked the first time in the company’s history that sales declined year over year.

This is a copyrighted image from 2024 and owned by The Associated Press. It is hereby reserved that all rights remain with the owner. There may be no publication, broadcast, rewriting, modification or redistribution of this material.

SEE ALSO:

Thailand Looks to Hydrogen Power to Replace Oil-Powered Vehicles