Tesla, electric vehicles, Elon Musk, price drop, market reaction, automotive industry, sales strategy, referral program, workforce reduction, India expansion, financial report
In an unexpected move, Tesla has reduced the prices of its Model Y, Model X, and Model S vehicles by $2,000 each in the United States. This decision comes shortly after the company’s first-quarter deliveries fell short of market expectations, leaving investors disappointed.
Elon Musk’s electric-vehicle giant announced the price cuts on its website, with the base variant of the Model Y now priced at $42,990, and the long-range and performance variants at $47,990 and $51,490, respectively. Similarly, the basic version of the Model S now costs $72,990, while the plaid variant is priced at $87,990. The Model X base variant is now available for $77,990, with its plaid variant priced at $92,900.
Tesla also announced the discontinuation of its referral program benefits across all markets, effective April 30. This program, which provided extra incentives through referrals from existing customers, was a traditional strategy used by automakers to boost sales.
Additionally, Elon Musk’s planned trip to India has been postponed, where he was expected to meet Prime Minister Narendra Modi and announce Tesla’s entry into the South Asian market. Reports indicate that the company is laying off more than 10% of its global workforce, further indicating a period of strategic reassessment.
Earlier reports revealed that Tesla had scrapped plans for a long-promised affordable car, expected to cost $25,000, which had been anticipated to drive mass-market growth. These setbacks come as the company reported a decline in global vehicle deliveries for the first time in nearly four years, despite previous price cuts aimed at stimulating demand.
With Tesla’s first-quarter earnings report looming, the market eagerly awaits insights into the company’s performance and future strategies amidst these challenges.
