May 22, 2024

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Tesla reduces US prices for three of its electric car models after a difficult week

Tesla reduces US prices for three of its electric car models after a difficult week

Tesla has cut $2,000 from the prices of three of its five models in the United States

Tesla cut $2,000 from the prices of three of its five models in the United States late Friday, in another sign of the challenges facing the electric car maker led by billionaire Elon Musk.

The company reduced prices for the Model Y, a small SUV that is Tesla's most popular model and the best-selling electric car in the United States, as well as the Models Prices for the Model 3 Sedan and Cybertruck remain the same.

The cuts lower the starting price for the Model Y to $42,990, to $72,990 for the Model S, and $77,990 for the Model X.

The move came the day after Tesla's stock price fell below $150 per share, wiping out all of the gains made over the past year. The Austin, Texas-based company's stock price has fallen about 40% so far this year amid declining sales and increased competition. Lower sticker prices are a way to try to attract more car buyers.

Industry analysts had been waiting for Tesla to introduce a small electric car costing about $25,000, the Model 2. Media reported this month that Musk intended to cancel the project to create more uncertainty about the company's direction, although Musk described it as untrue.

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The price cuts ended a long work week at Tesla, which announced on Monday that it would cut 10% of its employees globally, or about 14,000 jobs. The company also said it is recalling nearly 4,000 2024 Cybertrucks after discovering that the accelerator pedal could become stuck, which could cause the vehicle to accelerate unintentionally and increase the risk of a crash.

Musk confirmed on Saturday that he had postponed a planned weekend trip to India to meet Prime Minister Narendra Modi, citing Tesla's “very heavy commitments.” He said on the X program that he was looking forward to rescheduling the visit for later this year.

Tesla is scheduled to announce its first-quarter earnings on Tuesday.

The company reported earlier this month that its global sales fell sharply from January to March as competition increased around the world, electric vehicle sales growth slowed, and previous price cuts failed to attract more buyers.

This was the first quarterly decline in Tesla sales year over year in nearly four years.