Tesla slashed the price of three of its five US models late Friday. Tesla lowered the costs of its Model Y, a compact SUV and the top-selling electric car in the US, and its older and more costly Models X and S.
The EV maker lowered its Model Y prices to $42,990, Model S to $72,990, and Model X to $77,990. While the Tesla Model 3 EV and Cybertruck prices remained unchanged, according to NBC News.
The strategy came after Tesla's stock price dropped below $150 per share, wiping out profits from the prior year. Due to falling sales and increased competition, the company's shares have fallen 40% this year. Low sticker prices are considered an attempt to entice consumers in a tough market.
Elon Musk's India Visit Postponed
Elon Musk noted early Saturday on X that an entry-level Tesla cost $29,490 after a federal tax credit and gas savings. Earlier this month, there were reports that the tech mogul wanted to terminate the development of the Tesla Model 2, a $25,000 compact electric vehicle project. Elon Musk refuted the speculations.
Tesla's top executive said on 'X' that he had postponed a trip to India to speak with Indian Prime Minister Narendra Modi due to "very heavy Tesla obligations." He was optimistic about rescheduling the India visit for later this year.
On Friday, millions of Indians voted in a six-week election that will test PM Modi, who advocates Hindu nationalism, per AP News.
Voting began in the first 21 states, from the Himalayas to the Andaman Islands, with voters across the country queuing up early at polling locations. This staggered voting schedule runs until June 1, with the results published on June 4.
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(Photo : FREDERIC J. BROWN/AFP via Getty Images)
Tesla CEO Elon Musk views the new Tesla Model Y at its unveiling in Hawthorne, California on March 14, 2019.
Tesla Recalls Thousands of Cybertrucks
The Tesla pricing changes concluded a turbulent week after the EV firm announced a 10% worldwide employment reduction or 14,000 job cutbacks.
In addition, the company recalled about 4,000 2024 Cybertrucks due to a potential accelerator pedal fault that could cause unexpected acceleration and accidents. The Cybertruck's accelerator pedal pad may become tangled in the vehicle's interior trim, raising safety concerns, as earlier reported by TechTimes.
The NHTSA has validated the recall of 3,878 model-year 2024 Cybertrucks made between November 13, 2023, and April 4, 2024. So far, the agency has reported no safety-related collisions, injuries, or deaths.
Tesla CEO Elon Musk offered free repair to affected Cybertruck EV owners. Electric vehicle makers will replace or repair the Cybertruck accelerator pedal assembly. June should bring recall notices to affected car owners.
Despite a record 1.8 million vehicle sales last year, Tesla's first-quarter 2024 profits decreased as it built more vehicles than it shipped. Tesla's strategic move puts a question on its sales and delivery practices, especially as it releases its newest vehicle platform.
Tesla has struggled to continue rapid growth, especially when larger manufacturers have released battery-powered vehicles, according to The New York Times. Increased competition has hindered Tesla's automobile sales.
Even with market trends like the Cybertruck, Tesla's distinctive design and a high starting price of over $80,000 may limit its sales.
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