Tesla reduces prices of 3 EV models in US amid challenging week
Date
4/21/2024 4:14:11 AM
(MENAFN) Late Friday, Tesla made a significant move by reducing the prices of three out of its five models in the United States, underscoring the challenges confronting the electric vehicle giant led by billionaire Elon Musk. The price cuts affected the Model Y, Tesla's popular small SUV and the leading electric vehicle in the U.S., as well as the older and pricier Models X and S, while prices for the Model 3 sedan and the Cybertruck remained unchanged.
As a result of these adjustments, the starting price for a Model Y now stands at USD42,990, while a Model S begins at USD72,990 and a Model X at USD77,990. The decision to slash prices follows Tesla's stock dipping below USD150 per share the previous day, wiping out all gains made in the past year.
The downward trajectory of Tesla's stock price, plummeting by approximately 40 percent since the beginning of the year amid declining sales and heightened competition, has prompted the company to employ discounted sticker prices as a strategy to attract more potential car buyers.
Elon Musk, Tesla's enigmatic CEO, took to Twitter on Saturday to highlight that the cost of an entry-level Tesla could be as low as USD29,490 after factoring in federal tax credits and savings on gas. However, industry analysts remain keenly observant for Tesla's introduction of a small electric vehicle around the USD25,000 price range, dubbed the Model 2. Recent media reports suggesting the abandonment of this project by Musk have only added to the uncertainty surrounding the company's future trajectory, despite Musk refuting such claims.
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