In a strategic move, Tesla has announced a significant price reduction for its Model Y, Model X, and Model S vehicles in the United States, slashing $2,000 off each model’s price tag. This decision comes hot on the heels of the electric automaker’s first-quarter delivery figures falling short of market forecasts.
Elon Musk’s pioneering electric-vehicle (EV) company has adjusted the prices across its lineup, with the base variant of the Model Y now available at $42,990, while the long-range and performance variants are priced at $47,990 and $51,490, respectively, as listed on its website.
The Model S sees its basic version priced at $72,990 and the plaid variant at $87,990, while the Model X base variant is now offered at $77,990, with its plaid variant priced at $92,900.
Additionally, Tesla North America has announced the discontinuation of its referral program benefits across all markets after April 30. This program, aimed at incentivizing purchases through customer referrals, has long been a cornerstone strategy for traditional automakers to drive sales.
Meanwhile, Elon Musk’s planned visit to India, where he was expected to meet Prime Minister Narendra Modi and unveil Tesla’s foray into the South Asian market, has been postponed, according to reports from Reuters.
Furthermore, internal communications revealed that Tesla is implementing workforce reductions of over 10% globally, as reported by Reuters earlier this week. This move follows the cancellation of a highly anticipated budget-friendly vehicle priced at $25,000, a development that investors had pinned hopes on for driving mass-market expansion.
Amidst these developments, Tesla faces scrutiny as it prepares to announce its first-quarter earnings on Tuesday, against the backdrop of declining global vehicle deliveries and persistent challenges in stimulating demand despite price adjustments.
